The Republic's economy will be in a strong position to benefit from the inevitable bounce in the international economy, the Taoiseach, Mr Ahern, said in a New Year's message.
Rejecting once again charges that voters were misled before the election, Mr Ahern said: "We have come through an unprecedented period of economic prosperity yet through no fault of our own we now have to charter more difficult waters.
"We have never sought to hide the fact that the obstacles posed by the foot-and-mouth threat, followed by the global recession that spiralled from September 11th, meant a new and more uncertain economic climate."
The benefits of the economic boom were spread throughout all levels of society, he said, in better social services, the National Pension Reserve Fund and a €5 billion cut in taxes. Defending the Budget choices, he said it is "a strategy to protect our prosperity".
"We are determined to manage our economy prudently so as to ensure that as many existing jobs as possible are secured.
"Our refusal to take the soft option and plunge the country back into the days of massive debt and huge spending is the right thing for the short-term, the medium-term and the long-term.
"It means that when the inevitable upsurge comes in the international economy, Ireland will be in a strong position to accelerate rapidly," he said in his New Year's message to Fianna Fáil members.
"In moving forward, we believe that only by continuing to act prudently in the present climate can we ensure Ireland's fiscal and economic stability. The Irish economy is still strong."
And the economy will "grow strongly into the future".
"We can and we will continue to provide the additional resources we need for our hospitals, our schools and our pensioners and for our children far into the future.
"The future is bright and it will be ours to shape because we are doing the right thing at the right time. To those who demand we tailor our plans and temper our ambitions, I say the optimism of Fianna Fáil is undiminished.
"We can also take pride in the leading role our political movement played in bringing about a positive outcome in the Nice Referendum and a resounding Yes vote, which was a good result for Ireland and Europe."
Dismissing allegations that election promises will be left to wither, he said: "Experience has taught us that the secret to success in governing is to make progress in a practical step-by-step manner.
"Major change can only be brought about in a manner that is sustainable and affordable. That is the approach we took over the five years of our first term. That is the foundation on which our second term will be set."
