"There is no reason why the Celtic Tiger cannot be an all-island phenomenon," Taoiseach Bertie Ahern has told the annual Confederation of British Industry (CBI) conference in London.
Proclaiming the now "unique partnership" between London and Dublin, Mr Ahern said both governments wanted to "invest together in the productive capacity and competitiveness of the island" - in infrastructure, education, skills and science, as well as "improved services to our citizens by working better together".
Asked about his attitude to the campaign for a reduction in the North's corporate tax rates, Mr Ahern said he would obviously welcome this and take a "same-view" approach on tax issues as, for example, the promotion of all-island tourism. However, he made clear this was an issue for the British treasury.
Affirming the commitment of himself and Tony Blair to the restoration of devolved government at Stormont, Mr Ahern told his audience the "all-island" dimension would be an important part of the new National Development Plan.
The Government was in negotiations with the treasury in London and with the Northern Ireland (direct rule) administration about a potential package that could help both economies.
"I look forward to seeing these plans agreed and implemented - on the basis of mutual respect and for mutual benefit - with a new first minister, deputy first minister and executive in 2007."
In a speech charting the evolution of Ireland's economy and stressing the importance of Ireland's place "at the heart of the European project", Mr Ahern said Ireland and Britain had come a long way by acting together.
"We have brought our relationship on to a new plane. We have replaced conflict with co-operation. We are working closely together to realise the progressive vision of the Good Friday agreement," he said.
"We are busily trading with each other and investing heavily in each other. We are holidaying in each other's countries and enjoying each other's cultures, while cherishing our own."
Mr Ahern said the peace process had been "slow and indeed at times frustrating", but it had been worth it. "Lives have been saved and Northern Ireland is now a different place with a real and promising future.
"Prime minister Blair and I remain absolutely committed to seeing this process successfully completed. We are determined to proceed with the implementation of the St Andrews Agreement, leading to the re-establishment of a powersharing government next March."