The President Mrs McAleese has officially begun Cork's tenure as European Capital Culture, as around 85,000 people poured into the city to mark the historic year.
The president was joined by ambassadors and citizens from across the European Union for the official opening ceremony, as the street carnival erupted across the southern city.
Mrs McAleese said this was pay back time for the city hosting many international cultural events and claimed it was a vindication of its legendary people including short story writer Frank O'Connor.
"This wonderful accolade for Cork is a recognition for Cork, is a recognition of her people," she said.
The president said hosting the European city of Culture programme was "a formidable task" but it would immensely enrich the city.
The Minister for Arts, Sports and Tourism Mr O'Donoghue said Cork's "cultural genius" had found itself in men like author Niall Tobin, former president Jack Lynch and sportsman Christy Ring.
A rhythmic musical drama, Red Sun, by 100 young performers from Cork's Children's Chorus cast colour to the ceremony in the City Hall.
Mr John Kennedy, Director of Cork 2005, said Ireland's culture is changing. "In devising a programme of activities that would do justice to both Cork and to the designation of European Capital of Culture, we have had to take into account the changing nature of life on the island," he told the packed City Hall.
The programme for Cork's tenure as European Capital of Culture over the next 12 months contains over 200 official projects and it was given capital funding of €191 million for renovation and events, €15 million from Cork City Council and the Government and €500,000 euros from the EU.
Revellers travelled from across the country and Europe to see the vast street theatre and the enormous fireworks spectacle along the banks of the River Lee. Hundreds of street performers from all over the world brought Cork to life as part of their awakening ceremony.
There are ten individual carnival stages located throughout the city centre, including fire-eaters, circus acts, samba bands and massive puppets. The awakening ceremony also includes a 3.5 ton fireworks display with the theme based on the ancient myths that the River Lee was formed by the gorging tail of a giant serpent defeated in battle.
Street theatre company, Waterford Spraoi, were creating Ireland's first large scale river spectacle involving the amazing feat of a 600 yard serpent rising from the River Lee.
PA