The Taoiseach, Mr Ahern, has summoned Fianna Fail ministers to a crisis meeting in Government Buildings this morning to discuss strategy in the wake of the Hugh O'Flaherty debacle.
It is understood he will tell them in no uncertain terms that there has to be a dramatic turnaround in the party's performance if it is to avoid major losses at the next general election.
As well as reviewing the O'Flaherty controversy and asking how the Government got it so badly wrong, Mr Ahern will discuss with ministers how they can recover lost electoral support.
Meanwhile, the leader of the Labour Party, Mr Ruari Quinn, last night joined Fine Gael in calling for vetting procedures for public appointments.
Mr Quinn said his party would shortly publish detailed proposals for procedures to ensure all senior public appointment made by Government were vetted by an Oireachtas Committee.
"It is clear that the public will no longer tolerate the current non-transparent and unaccountable system of appointments where governments can nominate people to key positions without any regard for their suitability or qualifications," he said.
Today's meeting was arranged last week after Mr O'Flaherty asked the Minister for Finance, Mr McCreevy, to withdraw his name for the post of vice-president of the European Investment Bank (EIB).
Mr Ahern is anxious to meet his ministers after the summer break before he departs today for the UN millennium summit in New York.
Because of his UN commitment he will not be in Dublin for the regular meeting of the Cabinet scheduled for tomorrow morning.
Today is his first opportunity to meet his Cabinet collectively following the controversy during the summer recess over the O'Flaherty nomination.
Senior Government sources said that while a range of issues would be discussed at today's meeting, the damaging fallout from the O'Flaherty affair would top the agenda.
"There is no doubt we have taken a huge battering over the O'Flaherty issue. But there is little point in looking back at this stage. We must look forward to see how we can make up lost ground," one source said.
Apart from O'Flaherty, the Taoiseach and his ministers will discuss strategy for the next budget. There also will be a general refocusing on other areas.
It is understood that Mr Ahern will assure his ministers that there is no question of a reshuffle at this stage, despite weekend speculation to this effect.
While one hour has been put aside for the meeting, sources expect it to go on much longer.
At the meeting, the Minister for Finance, Mr McCreevy, is likely to produce a shortlist for discussion of potential suitable candidates for the job of EIB vice-president.
It is understood the Second Secretary at the Department of Finance, Mr Michael Tutty, tops the list. There is unlikely to be objection from any Cabinet member to his name.
Today's meeting is the first in a number of steps by Fianna Fail to regroup and refocus following the serious political damage inflicted over the O'Flaherty appointment issue.
The Taoiseach will also host a two-day meeting with backbenchers in Kilkenny at the end of this month.