The Taoiseach, Mr Ahern delivered an upbeat economic assessment today in a wide-ranging speech with one eye on the upcoming elections and the other on talks on the second strand of social partnership.
"Things in Ireland are definitely looking up," he told an Irish Management Institute conference in Killarney.
He said economic outlook is positive as evidenced by low inflation, accelerating growth, employment growth and improving business confidence.
Public spending is under control, he said, adding that as the global economy picks up, Ireland was "starting from a good base" relative to international competitors.
Although his upbeat message is geared in some part to the European and local elections on June 11th he also had a strong message for unions and employers ahead of the resumption of social partnership talks.
He urged them to continue with partnership despite their strained relationship over recent years, saying complacency could undermine economic prospects.
"This Government believes in the social partnership process. We believe that the series of agreements we have had since 1987 have been good for employers, good for employees and good for the country as a whole."
Productivity must continue to increase to maintain competitiveness, he said. "We will just have to keep on working on our weaknesses and playing to our strengths, repositioning, competing to win, innovating, developing new and better products and services, creating value, making the right choices."
Wage restraint was another factor in maintaining competitiveness, he argued. "If we price ourselves out of the marketplace, we will lose jobs. There can be no doubts or argument about this."
He assured unions that restraint did not constitute a "race to the bottom [but] if our labour costs continue to accelerate significantly ahead of our competitors, we risk losing the race to the top in the long run in terms of wages and conditions."
He said the Government will work to secure a deal because social partnership is better than any "free-for-all alternative".
Some factors are out of our control, he said, citing the currency markets and external competition particularly from the EU accession states, India and China. But he said a larger EU also created an expanded market for Irish products and services.
With the sale of a Dublin software company for over €80 million this week a tangible indicator of growing confidence in high-tech investment, Mr Ahern warned uncertainty still exists in the sector. He also expressed concern about the continuing fall in industrial employment levels.
The infrastructural deficit must also be addressed, he continued. "We have to equip our people to win a share in the marketplace of ideas, through investment in education, training and research. We need to ensure the right regulatory environment for business."