The Taoiseach, Mr Ahern, has accepted that change to the EU Stability and Growth Pact is not likely in short term. But he said the pact, which limits the Government's capacity to borrow, should be modified "in a controlled way" in the period to 2010. Arthur Beesley reports from Stockholm.
Stating that the Government should be entitled to borrow for important infrastructure and capital projects, Mr Ahern said that euro members with a low debt-GDP ratio should have room for manoeuvre.
He also said that the EU's future foreign policy should embrace all members of the union and spoke against a twin-track approach in which a small group of states would integrate their policy sooner than the broader EU.
He outlined three priorities for the Irish presidency of the EU, beginning in January for six months. These were: the union's expansion; the new treaty being developed by the Convention on Europe; and the Lisbon agenda on economic competitiveness.
Mr Ahern also said the plans for the presidency would embrace an attempt to improve relations between EU members and the US, after sharp divisions emerged over the war in Iraq.
Noting that EU finance ministers had ruled out an immediate change to the stability pact, Mr Ahern said: "We are now looking at a position of now to the end of the decade. We are looking at our next National Development Plan. It is our view that in that process that then there should be room for manoeuvre."
The Taoiseach was in Stockholm for a meeting with the Swedish Prime Minister, Mr Goran Persson. His comments follow a call last month by the Tánaiste, Ms Harney, for a relaxation of the rules in the pact.
Mr Ahern said the pact, which limits borrowing to 3 per cent of GDP, was designed to control day-to-day spending by governments. "We have a number of areas where we need to be able to spend money on the capital side to deal with these infrastructural deficits so that we would not be in a position where it will work against us to build up economic growth.
"I think we would share the view that this is an issue we will have to look at in a controlled way, not just changing the figures to lead to irresponsibility."
The meeting with Mr Persson over a working lunch was one of a series Mr Ahern is conducting with European leaders as the Government prepares for its six-month presidency.
Mr Ahern said the expansion of the EU to 25 members from 15 next May would be the Government's primary concern during its presidency. It was important that this would achieved successfully, he said.
He also said that part of an Inter-Governmental Conference to ratify a new EU treaty was likely to be held during the presidency.
Referring to the Convention on Europe, which is developing a draft treaty, Mr Ahern said: "We want to make sure that the equality, the balances, that are currently there are maintained." Mr Ahern said the Government wanted a "common position" on foreign affairs and security with all EU members. This would be pursued from the stance of Ireland's neutrality, he said.
He said: "We do not want to see enhanced co-operation by a group of countries just leading the way. I think as we go through the discussions of the IGC, we'll see if that's possible to do. It is not the shared view of everybody at this stage."
With Sweden to hold a referendum on euro membership next September, Mr Ahern answered a number of questions about Ireland's experience of the currency from Swedish journalists.
"Splendid isolation, and I speak for my own country, didn't give us much when we had it," he said. "We have no difficulty whatever with the euro."