The Government must take account of certain "facts and realities" in order to successfully manage the economy through domestic and global challenges, the Taoiseach has said.
Speaking at the Small Firms Association's annual lunch in Dublin this afternoon, the Taoiseach acknowledged that there were areas of policy where the "outcomes could be better" in terms of value-for-money, faster delivery or better services.
However, he said the Government was trying to redress the "accumulated effect of under-investment over previous decades in both economic and social infrastructure".
Mr Ahern said that over the first four years of the National Development Plan, almost a €1 billion more had been provided for economic and social infrastructure than had been originally committed.
"Great progress has been made. We can already see the impact of the National Development Plan on the ground," he said.
Mr Ahern said things would improve further as the fruits of investment became apparent and that good investment decisions were the key to success.
The Taoiseach told the business leaders that it was difficult to overstate the valuable role social partnership had played in providing certainty and stability for "Ireland Inc". He thanked the SFA for its "continuing contribution" to the process.
On the question of economic prospects, Mr Ahern said account must be taken of "the realities that affect our decisions".
Monetary union, international competition, Ireland's open economy and intense international for jobs and investment were among the factors to be taken into account in order to successfully manage the economy through "domestic and global challenges".
Mr Ahern acknowledged business concerns on issues such as inflation and insurance costs. However, he said Ireland was "well on course" towards "relatively rapid" convergence with the average eurozone inflation rate.
"I have clearly stated that is our objective and I am confident we will meet it," he said.
Mr Ahern also said there had been progress on insurance and on regulatory reform.