The Taoiseach said today that "trust and confidence" between the parties in the peace process had been "seriously damaged" by the events of recent months.
Speaking at a lunch organised by the Ireland Fund of Great Britain earlier today in London, Mr Ahern said: "We are not seeking to humiliate any group or score political points."
But he said the two issues of "decommissioning and ensuring a complete end to all forms of paramilitarism and criminal activity" were the remaining obstacles to progress.
"If they could be successfully resolved, I believe that it would be possible to move forward in Northern Ireland in a new spirit of partnership and co-operation," he said.
Later Mr Ahern met with British prime minister Mr Blair in Downing Street for a brief 30-minute meeting to discuss the present impasse.
A spokesman said the meeting gave both leaders a chance to assess the situation in the wake of last month's murder of Belfast father-of-two Robert McCartney and December's Northern Bank heist.
After the meeting, Mr Ahern said: "I think logic will prevail and the logic is that what we are endeavouring to do is to find the right way forward."
"Yes, we have had obstacles we have to find progress to deal with these difficulties. Both Prime Minister Blair and I want to do that." Mr Ahern
Mr Ahern also said "I think that Gerry Adams and Martin McGuinness have worked enormously hard. I understand what they have been trying to do, to keep everybody with them."
"I do not think that Gerry Adams and Martin McGuinness have put so much into this process not to see it through. I think they are endeavouring to find a comprehensive solution," he added.
Yesterday Minister for Foreign Affairs Dermot Ahern said the Government was still waiting to hear from the republican movement concerning the issues of paramilitary and criminal activity.
The Bush administration has confirmed it will not be inviting representatives from Northern Irelands' political parties to St Patrick's day celebrations.
Senior figures from the parties are traditionally invited to attend a ceremony in the White House. However the Taoiseach will be attending this year.
The decision was taken in the aftermath of the Northern Bank robbery and the McCartney murder.
But Sinn Féin leaders will be arriving in the United States next week for the usual rallies with supporters. Gerry Adams is due in the United States on March 12th and will visit Cincinatti, New Jersey, Philadelphia, Cleveland, New York and Washington.
Sinn Féin said it had been decided to change a number of fundraising events to speaking engagements. It is believed republicans fear the Bush administration could decide to stop fundraising by the party in the current climate.
The US government has been looking at fundraising since Dermot Ahern visited Washington two weeks ago and briefed US officials on alleged Sinn Féin knowledge of the Northern Bank robbery.