Ireland was very close to a Greek-style situation of capital controls and queues at ATM machines, Taoiseach Enda Kenny has claimed, as he asked the Syriza led government to “come back to the table”.

Mr Kenny said he hopes “common sense can prevail” and said resumed negotiations could allow for measures to increase growth, infrastructure and investment in Greece.

Speaking at the launch of the Coalition’s Action Plan for Jobs for the midlands, the Taoiseach called on the Greek government to “come back to the table and put together a proposition that would allow for an agenda of growth and infrastructure and investment in Greece”.

Ordinary Greeks are being “subjected to very severe difficulties which could be exacerbated if this doesn’t happen”.

“Pretty shortly after the Government was elected, we were given very clear warnings about the difficulties in so far as our economy was concerned to the effect that it might be necessary to restrict capital outflows from banks and indeed to have the Army surrounding ATM machines,” Mr Kenny added.

“But the Government of which I lead, along with the then tánaiste Eamon Gilmore, made decisions that were very tough and were very difficult in the interests of dealing with our problem.

“You can see the progress that we have made in the last four and half years. While still fragile, it is in a much better place than it used to be with employment growing and interest rates having dropped.

“We were very close to that point, very close to that point but because of the capacity of the Irish people to stand up and address challenges and meet those challenges, we are in a very different spot now.”

He added there is a willingness and support from the European institutions to help Greece, which he said he witnessed himself at recent meetings of the European Council.

Other members of the EU want to “support and stand by Greece as a member of the euro zone, stand by the people of Greece who are now being exposed to exceptional difficulties.

“You can imagine if you can translate that into our country, what would happen in a situation where people weren’t able to avail of the facilities in an ATM machine or for transactions in their banks or were limited severely in what they could do.”

Regarding the request by Greek prime minister Alexis Tspiras for an extension of the current bailout up to Sunday’s Greek referendum, Mr Kenny said such an extension would need to be ratified by many European parliaments.

“There was never a mention before of there being a referendum,” Mr Kenny said. “I have had calls from other European leaders who have said to me they would not be able to get it through their parliaments, a motion to give an extension to the programme.

“That is the problem of democracy from the other side. That other people are saying: ‘we have a programme here, you’ve had six months discussion on it and you have changed all the time from what the issue really is’.”