European leaders have launched a sweeping review of the European Union aimed at making the European institutions more effective and democratic.
The Convention on the Future of Europe will meet from March next year with a broad mandate to examine the strengths and weaknesses of the EU.
The Taoiseach has acknowledged that the convention could put sensitive issues for Ireland, such as tax harmonisation, back on the table for debate.
"I think in the debate you are going to get all kinds of issues and quite frankly it's not going to be very possible or credible to stop people raising issues. But that applies both ways", he said.
The Taoiseach was speaking towards the end of a two-day meeting of EU leaders in the Belgian royal palace at Laeken. The leaders agreed to adopt a common policy on asylum and immigration as soon as possible.
And they declared the European Defence and Security Policy, which includes a 60,000-strong Rapid Reaction Force, to be operational.
The meeting was marred by battles between police and protesters, who attacked offices and shops and threw petrol-bombs at police. And the summit ended in a failure to agree on the location of a number of new EU agencies.
The convention will be chaired by the former French president, Mr ValΘry Giscard d'Estaing, assisted by the former Italian prime minister, Mr Giuliano Amato, and the former Belgian prime minister, Mr Jean Luc Dehaene.
Some observers have expressed concern that the 75-year-old Mr Giscard d'Estaing, who was president from 1974 until 1981, will be unable to communicate effectively with younger Europeans. One senior EU diplomat described him as "not so much yesterday's man as the day-before-yesterday's man".
Mr Giscard d'Estaing, Mr Amato and Mr Dehaene are all keen promoters of further political integration and the 12-person praesidium which will steer the convention will include two members of the European Commission. National governments, national parliaments, the European Parliament and the candidate countries will also be represented at the convention.
Asked if the convention agenda and the make-up of those driving it were more integrationist than Ireland would like, the Taoiseach said it was necessary to have a fundamental look at the EU's structures because "the system as we know it has to change substantially". But he signalled that he would resist the opening of taboo subjects for the Government, such as ending national vetoes on taxation policy.
The Health, Consumer Affairs and Food Safety Commissioner, Mr David Byrne, has welcomed the Laeken declaration, which launched the convention. "We have launched an important phase in building a new Europe of the peoples for the peoples. It is vital that the Irish people play their full part in the convention", he said.
The Taoiseach said he had passed on to his colleagues a message from the chairman of the Forum on Europe, Senator Maurice Hayes, that Europe's political leaders needed to be in constant consultation with the people on the issues which concerned them.
"Nobody is talking about a superstate. The nation state will remain our core political unit now and into the future, but there are things which can most effectively be done at European level. What Europe needs to do more than anything is demonstrate to the people that the European Union is their union and is, with national governments, delivering to them", he said.
The convention is likely to meet until the middle of 2003 and EU leaders will consider its conclusions at a new treaty-making conference, possibly during Ireland's EU presidency in the first half of 2004.