The former Taoiseach Mr John Bruton, has been appointed as the Head of the European Commission's Delegation to Washington.
The decision was confirmed at a meeting of the 25-member Commission this morning. The former Fine Gael leader was strongly supported by the External Relations Commissioner Mr Chris Patten.
The Commission has appointed a senior political representative in the US because of the priority the Union places to EU-US relations. Mr Bruton will lead the rebuilding of relations which were damaged following a series of disagreements over US policy in Iraq.
"The decision reflects the joint wish of the Commission and member states to raise the profile of the European Union in the United States," a Commission statement said.
Speaking on RTE radio this afternoon Mr Bruton said "Nobody finds it easy living in another country but I think the job is so important and the challenge is so great I think its the right thing for me to do".
"From a personal point of view Washington is the most interesting place to be in the entire world if you are interested in politics," he added.
He also described his new post as "a job of communications, seeking to influence key decision makers and also anticipating problems and preventing them getting to difficult to deal with".
Welcoming the appointment, the Minister for Foreign Affairs, Mr Cowen, said Mr Bruton's "contribution to Irish public life in his thirty five years as a member of Dáil Éireann, including his period as Taoiseach, has been a distinguished one."
Mr Cowen noted that Mr Bruton had made an important and effective contribution to the drafting of the European Constitution as a member of the Praesidium of the European Convention.
The current Fine Gael leader, Mr Kenny, also congratulated his party colleague on the appointment, which he said was a "huge honour" for both Mr Bruton personally and Ireland as a whole.
"He is eminently qualified for this appointment having demonstrated a very strong commitment to European integration throughout his career," Mr Kenny said.
The appointment will result in a Dáil by-election in Mr Bruton's Meath constituency, which is likely to be held next spring.
Mr Bruton (57) is expected to take up his post in November. He joins one of the Commission's largest delegations with a staff of over 80 people. His portfolio will cover all major policy areas including trade, political, economic, financial, agricultural and consumer policy, as well as transport, energy, environment, science and technology issues.
Mr Bruton is currently deputy president of the European People's Party.