The establishment of new political institutions in Northern Ireland and the inception of the euro were two examples from the past year of the importance of politics, according to the Fine Gael leader, Mr John Bruton.
In a New Year message, he described the launch of the euro as "a triumph of political will over the scepticism and hostility of economists and commentators". The NATO war against Yugoslavia was also a high-risk political operation which had set a precedent of outside military involvement in the affairs of sovereign states.
Mr Bruton referred to the "scepticism, prejudice and fear" which had been overcome in setting up the Northern Ireland Executive. "On the other hand, the fiasco of the Budget . . . is a demonstration of how political folly can triumph even over the most favourable circumstances."