European enlargement provides opportunities as well as challenges for Ireland, the Taoiseach, Mr Ahern, said as he told the Dail about the European summit in Luxembourg last week.
He said the "associated states" which were seeking membership of the EU would create new markets with significant potential for Irish exporters, as their economies developed.
Ireland would adopt a positive approach to enlargement, negotiations for which begin next year with Cyprus, Hungary, Poland, Estonia, the Czech Republic and Slovenia.
Mr Ahern said no decisions were taken in Luxembourg on the share-out of EU funding in the next round, and member-state allocations would probably not be decided until 1999. Ireland's improved economic performance had been assisted by EU transfers.
"EU transfers to Ireland will continue to have an important role in achieving this and this must be recognised in the detailed Agenda 2000 negotiations."
Ireland continued to have significant development needs, including the infrastructure and continuing employment needs.
"In addition, because our movement towards average Community GDP is so recent, we have not had the opportunity to accumulate the national stock of wealth and capital available in other member-states, which have been relatively prosperous over a much longer period."
He said the European Commission recognised in Agenda 2000 that any transition from Objective 1 status under the Structural Funds must be gradual, and had proposed transitional provisions for regions which exceeded the threshold for Objective 1 status.
"We welcome this recognition because it is essential that the aims of Objective 1 in Ireland are met fully, and on a sustainable basis. Ireland emphasised to the European Council that transitional arrangements must be adequate in both content and duration.
"It is in everyone's interest, especially that of the Union as a whole, that a cycle of dependency be avoided, and that Ireland's relative success story continue. A period of consolidation is definitely required, if Ireland's present achievements are not to be undermined."