Employers' group Ibec has said the Programme for Government lacks ambition in its plans for infrastructure investment, saying the Government ought to push for a relaxation of European Union rules to allow a higher level of capital spending.

It also said the number of independent TDs appointed to Cabinet will likely cause difficulties in agreeing coherent government policy that commands the lowest level of support in the history of the State.

Ibec said the new Programme for Government contains many sensible ideas that, if implemented, can support a sustainable and balanced economic recovery.

Its big criticism is that the programme lacks ambition on investment spending, coming up short on resources for infrastructure needs.

It said the extra €4bn of capital spending in the programme is only about a third of the amount Ibec believes is needed, urging the Government to seek a relaxation of EU fiscal rules to allow more spending on infrastructure - taking advantage of record low borrowing costs.

Commenting on the new politics, Ibec said the danger of a minority government avoiding difficult decisions is very real, and political expediency may undermine important policy priorities.