Economic challenges facing the administrations in both parts of the island topped the agenda at a meeting of the North-South Ministerial Council in Dublin today.
Taoiseach Brian Cowen hosted Northern Ireland First Minister Peter Robinson and deputy First Minister Martin McGuinness at the meeting, which was attended by 26 Ministers from North and South.
The meeting at the State guesthouse, Farmleigh, will also consider how both governments can work together to save money and to improve services. There will be a focus on co-operation in innovation and economic development.
Ministers also reviewed progress across a range of North-South co-operation, from cancer services in the northwest to cross-border infrastructure development.
Mr Robinson and Mr McGuinness were expected to raise concerns about possible job cuts arising from the sale of First Trust Bank, Northern Ireland subsidiary of the AIB group.
Speaking ahead of the meeting the Taoiseach said: “As we face the continuing challenge of generating economic growth and jobs and achieving fiscal consolidation, North and South, we must work together energetically in whatever ways we can, for mutual benefit.
“The ongoing work of the North-South Ministerial Council can play an increasingly important part in our strategy for economic recovery and can realise benefits for all of the people, North and South.”
In a joint communiqué issued following the meeting, the Ministers said they had a "comprehensive discussion of the fiscal challenges facing each jurisdiction and the measures they are taking to consolidate their budgets and to prepare for economic recovery".
"In the current difficult economic environment, Ministers emphasised the need to secure value for money across the full range of public sector expenditure. In this context they welcomed the ongoing discussions between the two Finance Ministers to identify potential cost savings through co-operation and sharing."
They also discussed the "significant level" of co-operation underway to promote innovation to underpin economic growth and create employment.
These included the introduction of "innovation vouchers" on an all island basis, funding provided through the Programme for Research in Third level Institutions, cancer research, increased
cooperation in securing research funding under the EU Seventh Framework Programme (FP7) and the success of the US/Ireland/Northern Ireland Research and Development Partnership.
The Executive raised concerns about restructuring of the banking sector and issues related to the insurance sector, the communiqué stated.
Progress on a range of child protection issues, including the establishment of the North-South Child Protection website, was also discussed.
The ministers also discussed a coordinated approach to reducing permitted blood alcohol levels for driving in both jurisdictions, the introduction of the mutual recognition of driver disqualifications between the UK and Ireland in January, and continuing work on the mutual recognition of penalty points.