Mr Kenny called on banks that had been recapitalised by taxpayers to deal with the 100,000 distressed mortgages, while Mr Gilmore said personal insolvency reforms would deliver relief this year for people who were under pressure.

“We’ll do more to accelerate a solution to the mortgage crisis so that as many individuals and families as possible are offered sustainable solutions. What we want here is a process that is transparent and fair,” Mr Kenny said.

Speaking at a press conference to mark the Coalition’s second year in office, Mr Kenny said two-thirds of its programme for government had been progressed satisfactorily, “and because they have a sense of stability has returned to the country”.

He said the “haemorrhaging” of jobs had stopped and Ireland’s 12.5 per cent corporate tax rate had been protected. “We have kept our promises in respect of tax and social welfare.” Mr Kenny said the Government was not looking for “claps on the back or credit”, and praised the “pragmatism, patience, sacrifice and spirit” of the Irish people.

The Coalition’s main goal in the next year was to successfully exit the IMF-EU bailout programme, while continuing to reduce borrowing and debt to “sustainable” levels, he said.

Mr Kenny said the doors of the new personal insolvency agency would be open for business by early summer.

‘Lacuna’

He hoped a legislative strategy to deal with a “lacuna” in the law could be issued next week, but said it would not lead to large-scale repossessions.

A legal loophole highlighted in a 2011 judgment by Ms Justice Elizabeth Dunne prohibits banks from repossessing a property taken as security prior to December 1st, 2009, unless a letter of demand had been issued prior to that date.

Mr Gilmore said the country had moved from chaos to stability in two years, with Ireland moving from being a “problem case” in Europe to being “its most likely success story”.

He said social reforms would be the hallmark of a modern, post-crisis Ireland. The Government would legislate for the X case, hold a referendum on abolishing the Seanad and put Ireland “on the path to universal health insurance” this year.

Mr Gilmore said relations between Fine Gael and Labour were not strained. In normal circumstances the largest and second largest parties would be “looking across the chamber at each other”, but the Coalition partners had come together at a time of crisis.

‘Distinct identities’

They remained separate parties with distinct identities and histories.

“This Government is working well together and is going to go the full course,” he said.

Mr Gilmore said the “first priority” of Government was to attract more jobs into the country, with levels of youth unemployment a particular concern.

Fianna Fáil leader Micheál Martin said the Government had failed to put pressure on the banks to deal with the mortgage crisis. Mr Martin said his party had attempted to be constructive by bringing forward proposed legislation on mortgage arrears.

He said public trust in the political system was at an “all-time low” and the actions of the Government had contributed significantly to that. He said the Coalition was fixated with “spin” rather than substance. “‘Headline first’ seems to be the motto,” he said.

He also accused the Government of launching an “attack” on the disability sector. Mr Martin acknowledged progress at a “macro” European level and said Fianna Fáil had “signed up” to budgetary figures and targets.

Sinn Féin leader Gerry Adams accused Fine Gael and Labour of “presiding over two years of austerity” and causing citizens “significant hardship”.

Main achievements: Government's view

* A deal on the promissory note, achieved in February 2013, to reduce Ireland’s borrowing needs by €20 billion over the coming decade.

* The EU/IMF bailout deal renegotiated to cut interest payments and free up investments for stimulus.

* A clawback of over €2 billion for the taxpayer from Irish Life and Bank of Ireland.

* The economy returned to growth and increasing employment in the private sector for the first time in four years.

* Children’s Referendum approved strengthening children’s rights.

* Constitutional Convention under way considering a range of potential reforms.

* Personal Insolvency Act 2012 passed.

* New laws restricting corporate, political donations.