European Union leaders have warned that the European economy remains fragile and have given cautious support to a Commission proposal to boost economic growth by investing in infrastructure and research projects.
In a joint statement at the end of their two-day summit in Brussels, the leaders insisted, however, that the growth plan would have to be consistent with spending limits set out in the Stability and Growth Pact.
"After a period of uncertainty, some positive signs are emerging in Europe. An improvement in the international economic environment, low levels of inflation, stabilised oil prices and better conditions in the financial markets are key factors behind a pick-up in economic activity, which is expected to strengthen in the course of 2004.
"Since the situation remains fragile, a message of confidence in the European Union's economic potential is needed," they said.
The leaders called for decisions at their next summit, in December, on a "quick-start programme" of priority projects that could boost growth and attract private capital.
The Taoiseach, Mr Ahern, said Ireland's infrastructure difficulties could be eased by an interpretation of the Stability and Growth Pact that would facilitate public-private initiatives.
At present, the full cost of such projects is calculated as part of a government's annual budget deficit in the year of its initiation, even if the project takes a number of years to complete.
"I just do not understand the logic in accountancy terms in having a project that is developed over a number of years, built over a number of years or maybe even mortgaged over a number of years, where the hit in national accounts and into your general government deficit is taken up front.
"It doesn't make any sense. It is outside the principles of any kind of accountancy that I have ever seen or read about anywhere in the world," Mr Ahern said.
The Taoiseach said he hoped a review of the system conducted by Eurostat, the EU Statistical Agency, would recommend change. But he opposed calls for a more thorough overhaul of the rules of the Stability and Growth Pact.
"It's sensible that we have prudent control of our fiscal position and in the enlarged Europe that we stick to that," he said.
