Britain's deputy prime minister Nick Clegg has warned today that Ireland and the UK need each other more than ever because of global uncertainty.
During his first official visit to Ireland to attend the British-Irish Council summit, the Liberal Democrat leader also stressed the need for European unity.
Taoiseach Enda Kenny later said that the introduction of European taxation on financial transactions without the UK being part of such a regime would "not be acceptable" to his government.
Ireland would be able to a support a global move to introduce a financial transactions tax, he added.
Mr Kenny hosted the talks involving leaders from London, Belfast, Edinburgh, Cardiff, Jersey, Guernsey and the Isle of Man at Dublin Castle.
During the trip, Mr Clegg will have separate meetings with President Michael D Higgins, Mr Kenny, Tánaiste Eamon Gilmore and Minister for Enterprise Richard Bruton.
This evening, Mr Clegg will attend a reception for business leaders held in association with UK Trade & Investment and the British Chambers of Commerce.
He is expected to make reference to the "historic year" in 2011 for UK and Irish relations.
"Eight months ago the symbolism and success of the Queen's visit and the warmth with which she and Prince Philip were received were recognised worldwide," the deputy prime minister is expected to say.
"The legacy of history has sometimes shackled our friendship. After this last historic year, surely we can say our friendship is shackled no longer. For many people, this is the closest we have been in living memory - some would say the closest we have ever been."
Mr Clegg is expected to urge even closer ties because in these "extremely uncertain times" Ireland and the UK "need each other more than ever".
"The challenges we face have brought the importance of our friendship into stark focus," he will say.
"And we see clearly that so much more unites us than divides us; that we are stronger together - standing shoulder to shoulder as real and equal partners - than we are when we stand apart, and we can play our part together in leading a European recovery."
Mr Clegg and Mr Gilmore are expected to sign a Memorandum of Understanding promising even closer co-operation on consular support during international crises.
The pact includes an agreement to share information on crisis planning, a staff exchange programme between the Irish Department of Foreign Affairs and Trade and the UK Foreign and Commonwealth Office and improvements in co-operation on staff consular training.
Youth unemployment and the problem of drug abuse in both Ireland and the UK are among the topics to be discussed at the summit.
The British-Irish Council was set up under the Belfast Agreement to promote harmonious and mutually beneficial development of relations between the UK and Ireland.
As well as the Irish and British Governments, members include the devolved administrations in Northern Ireland, Scotland and Wales and representatives from the Isle of Man, Jersey and Guernsey.
The Dublin summit is the 17th and follows the most recent gathering in London last June.
PA