The latest findings by the International Monetary Fund (IMF) are based on a conservative view that fails to understand the particulars of the Irish economy, the Labour Party said today.
Labour's spokesperson on enterprise, trade and employment, Mr Brendan Howlin said: "It is predictable, but none the less disappointing, that the IMF should have produced such a narrow and conservative review of the Irish economy.
"The IMF is renowned for its one-policy-fits-all approach, no matter what country it is reviewing.
The fund is a lynchpin of the so-called 'Washington Consensus' which advocates the application of a conservative neo-liberal approach to economics around the globe.
"It is hardly surprising then, that they should find themselves in accord with our Minister for Finance, Mr McCreevy, on a number of issues," Mr Howlin continued.
Today's report said growth prospects for the economy remained healthy despite the country being on the verge of recession.
It advises a tight rein on public spending - including social welfare provision - and more people being brought into the tax net. It said the savings should be channelled into infrastructural investment.
Mr Howlin was critical of the advice and said the report particularly fails to recognise the extent of Ireland's infrastructure deficit and the extent of the jobs crisis.
"The IMF report seems to ignore the record rate of job losses in the Irish economy, now running almost one every 15 minutes.
"The IMF is now increasingly recognised as being a deeply conservative and unaccountable institution which has done significant damage to developing countries across the globe. If they are commending Minister McCreevy, we should not be surprised, but we should be concerned."
Fine Gael finance spokesman, Mr Richard Bruton, however, said the study's warnings about the Irish economy should be treated seriously.
The report showed the economic improvement of the last ten years could reversed particularly by teh Government's cautious approach to funding infrastructure, Mr Bruton said.
"Once again we have evidence that if the Government had not squandered the boom, it would be in a far better position to manage the current difficult economic climate," Mr Bruton said.