The Taoiseach, Mr Ahern, yesterday called on republicans to make a "giant leap", while the British Prime Minister, Mr Tony Blair, promised further policing reform in advance of a major speech today by the Sinn Féin president, Mr Gerry Adams.
Mr Adams will respond in his speech in Monaghan to Mr Blair's call last week for a dramatic move by the IRA - understood to mean substantial disarmament or disbandment - which would lead to similarly dramatic moves by the British government.
Mr Ahern echoed this call yesterday, saying that such moves provided the key to the restoration of the North's suspended political institutions.
In another significant gesture, Mr Blair confirmed that further legislation on reform of policing in the North - sought by nationalists and republicans - will be introduced at Westminster next month.
The legislation is expected to subject the Police Service of Northern Ireland to greater independent accountability, shifting the balance of power from the chief constable and the Secretary of State to the policing board and the police ombudsman.
Mr Ahern welcomed Mr Blair's commitment, given at a meeting on the margins of the EU Summit in Brussels. "There was some doubt in recent weeks that it might not be in the legislative programme and we were very pleased to hear it confirmed," he said.
The Taoiseach warned that further movement on policing reform, a reduction of the security presence in the North and an amnesty for paramilitary prisoners still "on the run" would only be achieved if republicans made a dramatic move. "A giant leap on all sides is what we want," he said.
Mr Ahern tseold reporters that the British and Irish governments would now seek to devise compromises on all the outstanding issues and put these to the Northern parties. "The two governments have a strategy. We may not agree on every small detail, but we certainly do on the big picture."
He made it clear that he wanted the institutions to be operational again before the Assembly elections scheduled for next May so that the pro-agreement parties could show the voters that they had moved the agenda forward on practical issues.
Last night, there was no indication from Sinn Féin that the speech by Mr Adams to elected party representatives from both North and South would be the definitive response to calls for an end to all paramilitary activity.