An all-island economy is a vital component of a fully-functioning EU internal market, commissioner Charlie McCreevy has said.
Mr McCreevy said that he looked with anticipation to the outcome of a comprehensive study of cross-Border co-operation undertaken by the British and Irish governments.
"The creation of an all-island approach to the economy is a subset of creating a fully functioning internal market. Every step up in scale, every advance towards openness, every barrier removed, creates opportunity and grows potential," he said.
Addressing more than 100 members of the business community and local representatives from North and South in Newry, Co Down yesterday, he said that he strongly supported efforts to restore the institutions of the Good Friday agreement at Stormont.
Referring to the growth of Newry, Dundalk and other Border areas, Mr McCreevy said political progress was vital to economic well-being.
"It is only in the context of the peace process, and especially under the Good Friday agreement, that they have begun to reveal their full potential," he added.
In a speech littered with references to liberalisation and investment in education, training and research, Mr McCreevy said that knowledge and innovation were the twin engines of sustainable growth. "We must examine our strengths and weaknesses carefully and honestly," he said.
"[ We must] make the right policy decisions now if we are to enjoy prosperity into the future. Our capacity for creativity will give us the edge. That means investing in education, research, skills. It means creating the type of culture that takes good ideas and turns them into jobs."
He railed against protectionism and what he called "economic patriotism".
"In the face of increased internal and external competition, some member states have moved to erect barriers . . . Nothing is more likely to wreck a national economy. It is also unfair to European partners and an affront to the very basic principles of the union."
And he warned he would take on any member state that went down this road, taking them all the way to court if necessary. "Not only because it is against the rules, but because it is wrong-headed. It is defeatist. It says Europe can't compete, can't do business without rigging the game. And I simply don't believe that it's true."
Mr McCreevy told The Irish Times he did not foresee early entry to the euro zone by the UK, even in the event of Gordon Brown succeeding Tony Blair as British prime minister.
"I don't know if the UK is ever going to join the euro; they have set out their own criteria that have to be met. I don't see it any nearer joining the euro than it was when it was launched.
"As for affecting North-South business, I don't think it has had a debilitating effect. The evidence seems to suggest, if anything, it has been on the positive side."
