The economy was "never going to be fixed by pious aspirations" and the Labour party had "stepped up to the mark", Taoiseach Enda Kenny has said.

Speaking from the local and European election count centre in Castlebar, Co Mayo today, follow huge losses for both Labour and Fine Gael, Mr Kenny said the Coalition had inherited an economic catastrophe. "This was a case of our endless poverty and we have come a long way in three years," Mr Kenny told RTÉ television.

“If anybody has a better idea...walk in here and say here’s sixty four thousand million euro for you, I’d like to hear it”, Mr Kenny added.

He said he had not spoken to Tánaiste Eamon Gilmore amid question marks over the Labour leader's position in that party. "That is a matter for the Labour party," Mr Kenny added.

"It was Tánaiste Gilmore who led the charge for the restoration of the integrity of Ireland abroad," Mr Kenny said. He said that Labour Party ministers had taken difficult decisions for the good of Ireland.

He also said newly elected local representatives would soon have to deal with the harsh realities of local budgets and they would find “no pot of gold” in that regard.

He added that “when we get to the end of the next 96 or 98 week period” the electorate will ask if did the Government “sort out the public finances and get our people back to work”

Earlier, Minister for Children Charlie Flanagan has the criticised Sinn Féin and Independents election promises as "a form of Utopia" that would lead the State to bankruptcy.

The Fine Gael Minister said the results from the local and European elections sent a ‘clear message’ particularly on issues such as medical cards and housing.

“It is a blow to the Government and certainly a blow to Fine Gael,” he said.

“We need to show perhaps a greater element of compassion.”

Mr Flanagan told RTÉ radio about 50 per cent of people did not vote.

“I do believe we’ve got to look at the other 50 per cent of those that didn’t vote at all,” he said.

“There’s something of a disconnect in Irish politics.”

He said answers were needed on where Sinn Féin and Independents would get the money if Government income such as property tax and water charges were cut.

“They are going to fix the health services, build more hospitals, provide more SNAs in schools, weaken the water charges and they are really not providing answers where they are going to get the money? That’s part of the difficulty,” he said.

“The type of Utopia that Sinn Féin has promised is undeliverable without leading the country back to a form of bankruptcy that we had under Fianna Fail.”

Sinn Féin TD Pearse Doherty said the party had submitted an alternative budget

“People are fed up with the broken promises. They are looking for an alternative,” he said.

“We’re the only party that provided a cost alternative (budget).

“The people are clearly saying we don’t have anymore to give.”