Tánaiste Eamon Gilmore has said his successor should keep Labour in Government until the end of its mandate in 2016 but said it was clear that the Coalition needs to renewed and economic recovery must be felt by the people.

“I think that we have to heed very clearly the message that the people of the country gave to both Government parties, particularly to the Labour Party,” he said.

“I think there is a determination on the part of both parties to complete the job to ensure that the Irish economy is secure but also that the benefits of that economic success are felt by people.”

Mr Gilmore was speaking this afternoon in Brussels as he arrived for meeting of European socialist leaders in advance of a informal summit tonight of EU heads of state and government.

He said “it is of course” when asked if he considered it important for his successor to bring Labour to the end of it current mandate with Fine Gael.

“Whoever is elected as the new leader of the party will lead the party into the general election, through it, and I hope back into Government,” he told reporters.

The Tánaiste also dismissed suggestions that the leadership contest could destablise the Coalition.

“There will be an orderly transition to a new leadership and there is no question in relation to the stability of the Government,” he said.

“There will be a new leader of the Labour Party and I believe that the party will unite fully around the new leadership.”

He added: “I think that there has to be renewal both by the party and of the party. I think that there also has to be renewal in Government and this is something that I have been talking about for a number of weeks.”

Asked if the party should stick with current budget targets under its new leadership, he said the difficulty faced in the local and European elections was that people did not experience the economic recovery in their own lives.

The Government would have to address that in future budgets, he said.

“Certainly I had a sense during the course of the election campaign that people were saying: ‘Yes, we understand what you had to do to rescue the country from an economic disaster. Yes we do understand that jobs are being created and we’re seeing economic growtha gain. But my household budget is down and it’s tightened and I’ve less money to spend and we have challenges.’”

In its next phase, the Government would have to ensure that people felt the benefits of the recovery. “I think that both parties in Government are of one mind to achieve that.”