Ireland is now the second most expensive country in the EU for creche places for children under the age of three.
New figures from an EU Commission study show that the average creche cost for this age group is €771 per month.
In countries like Latvia, Lithuania and Romania, childcare is completely subsidised by the government, with parents paying only for their children's meals.
Grace Bolton of the EU Commission office in Ireland said creche fees are expensive here because the Government leaves it to the market to determine costs.
Ms Bolton explained: "The main reason why the UK, Ireland and the Netherlands have the highest creche fees for children aged under three is the fact that the creche providers set the price according to the market conditions and the Government does not provide any regulation on the maximum fee payable by families.
"This contrasts with Denmark and Hungary where the maximum fee dictated by the government is 25% of a families income."