British prime minister Tony Blair and Northern Secretary Peter Hain have hailed the restoration of devolution at Stormont on Tuesday as the "final resolution" of what was one of the most intractable conflicts in Europe.
During question time in the House of Commons yesterday, Mr Blair made reference to the August 1998 Omagh bombing, in which 29 people were killed, including a mother heavily pregnant with twin girls.
"I think the will of the people in Northern Ireland was that the terrorists should not have their way and that we should redouble our efforts to find a lasting peace. And I think that is the best thing we can do to honour properly the memory of those people who died in Omagh," the prime minister said.
The "atmospherics" at Stormont were an extremely good "augury", he added. "I really believe there is the will now to make this work in Northern Ireland."
Mr Hain in a statement said it was not possible to overestimate the significance of the return of devolution. "In effect we witnessed the final resolution of what has been, for centuries, the most intractable source of political conflict in Europe," he added.
"And its significance is not confined to relations within these islands, because what happened on May 8th, 2007, showed the world how a "shared future" can emerge from even the most bitterly divided and blood-stricken past. And we must never forget how much misery and suffering that caused," said Mr Hain.
He said the deal struck between Sinn Féin and the DUP illustrated that "age-old enmities" could be overcome.
Mr Hain said there were many issues still to be addressed, such as the past and continuing pain of victims, parading, and persuading loyalist paramilitaries to embrace the current opportunities.
"If loyalism does not get into the mainstream and catch the tide that is taking Northern Ireland forward, there is a real danger that, despite the best intentions, they will be left behind and further isolated because no one will understand why there are groups within loyalism who still cling to an armed past," he said.
Mr Hain said he was struck by the businesslike approach of First Minister, the Rev Ian Paisley, and Deputy First Minister, Martin McGuinness, and "perhaps even more remarkably their cordial and warm personal interaction".
Tory spokesman on Northern Ireland David Lidington said peace "would not have been possible without the courage and sacrifice of the police and the armed forces, and the dogged endurance of the people of Northern Ireland over nearly 40 years of violence".
SDLP MP for South Down Eddie McGrady said Tuesday at Stormont was a "new beginning" that must be financially supported by the British government.
Mr Hain said "big progress" was made in recent days with the British chancellor of the exchequer Gordon Brown, in terms of the financial package.
Former Northern secretary Paul Murphy praised the efforts of the Northern Ireland office, Mr Blair, his predecessor, John Major, and the other Northern parties such as the Ulster Unionist Party and the SDLP.
Meanwhile, Dr Paisley has congratulated DUP deputy leader Peter Robinson and MP Jeffrey Donaldson on their appointment to the British privy council. "Our privy councillors, together with the DUP policing board members, will adopt a monitoring role over all security and intelligence matters over the coming months and years," he said.