The Taoiseach Enda Kenny has said implementing cuts to the public service pay bill through agreement would send out a message to the world that Ireland is committed to fixing it's problems.
Enda Kenny made the comments during his address at the IBEC CEO conference in Dublin this morning, where the European Commission President Jose Manuel Barosso is also speaking.
The Taoiseach also said Ireland will be able to exit the bailout programme by the end of the year, with the help of Europe.
He said the most troubled economic period of the decade is behind us, but as unions prepare to meet today to discuss their response to the Croke Park extension deal, the Taoiseach said an agreement is a crucial part of the recovery.
Mr Kenny said: "Implementing these savings by agreement with public service staff would be another big step on the road to economic recovery.
"It would send a signal to the world that the Irish people are determined to fix their economic problems and return our country to prosperity and full employment."