The Taoiseach, Mr Ahern, has said the local elections will present a great challenge to Fianna Fáil and called on activists to make a strong case for the party on the canvass next year.
Addressing party supporters last night at the annual Cairde Fáil dinner, he defended the Government's decision to move more than 10,000 civil servants away from Dublin and said patients deserved better from the health service.
Ireland's presidency of the EU would give the Government an opportunity to lead Europe. "It is an opportunity that I am determined we will seize," he said. With the 10 new states to mark their accession in Dublin next May, Mr Ahern said he believed they would see "a country we can be proud of".
He called on local election candidates and their supporters to "make the case" for the party on the canvass. "Next year we face another great challenge, to renew our mandate in local government," he said.
"Tonight we will have a great party. But in the new year it will be back to work and back on the campaign trail. We will do what we do best, meeting, canvassing and persuading our neighbours."
He said the decentralisation plan was good for Dublin and for the rest of the State. "It will make better use of our resources, of our infrastructure and especially of our most valuable resource of all, our people," he said.
"It is our challenge to see that the massive investment we are making is matched by reform and that it delivers value for money."
Mr Ahern said the health service must be changed, and the status quo was not an option.
"Patients deserve better. But I know, too, that change is often difficult. But it must come," the Taoiseach said.
" Our health reforms are a blueprint for a better and more effective health service."
He said the reform programme would give better care to patients and more people better access to specialists.
He did not mention the Hanly plan to reorganise accident and emergency services, which has proved controversial in Fianna Fáil.