The British Prime Minister, Mr Blair, repeatedly stressed the value of closer co-operation between Britain and the Republic during his visit.
He told a large audience of TDs, senators, MEPs, a range of political representatives, diplomats and dignitaries in the Dail yesterday morning that after "so much shared history, so much shared pain" came the "shared hope of a new beginning".
Addressing the peace process, he acknowledged it was at a difficult juncture where progress was slow. But, to loud applause, he declared his optimism.
"Let us not underestimate how far we have come; and let us agree that we have come too far to go back now," Mr Blair said.
He added that he and the Taoiseach were pursuing closer co-operation on an agenda of common objectives within Europe. He wished to see a new dimension to relationships between the two governments and the people of the two countries.
"We have therefore agreed to launch a new intensive process," he said. The objective was threefold: to revitalise bilateral relations; to ensure close consultation on European issues; and closer exchanges on international matters such as UN peacekeeping.
Illustrating his early associations with the Republic, Mr Blair said: "Ireland is in my blood."
His mother was born in the flat above her grandmother's hardware shop in Ballyshannon, Co Donegal. Up to the time when "the Troubles really took hold", he had spent virtually every childhood summer holiday in the Republic.
At a 90-minute working lunch in Government Buildings, the two leaders signed agreements on crime and on special needs in education.
Mr Ahern is expected to travel to Belfast early next week to "sign off" on the new North/South implementation bodies, according to senior Government sources.
A conclusion to the work on these bodies is within sight, but a "round table meeting" would be required after the weekend to seal the issue, the sources added.
It is also expected that agreement will be arrived at simultaneously on the number and functions of ministries in the new executive.