By James Helm BBC Dublin correspondent

A few days into Ireland's presidency of the European Union, the Prime Minister or Taoiseach, Bertie Ahern, was playing host.

Romano Prodi, President of the European Commission, came to visit with his team of commissioners, for initial meetings. The "family photo" was taken of the huge group, amid more smiles, and then it was down to business.

Bertie Ahern (left) and Romano Prodi played down any differences

And for Mr Ahern and his government there is much business to get stuck into. At last month's EU summit in Brussels the Italian presidency tried to get an agreement on a new constitution for the European Union.

The issue of voting rights for member states was the sticking point, and the meeting broke up without an agreement. France and Germany wanted a new system giving them more power. Poland and Spain said no way.

Agreement 'crucial'

Mr Ahern must now pick up the pieces.

When Mr Ahern and Mr Prodi emerged from meetings to speak to the media, any differences between the two were being played down. However, Mr Prodi said that if no agreement was reached soon on the new constitution, it could lead to a "two-speed" Europe, with some member states forging ahead.

The Irish do not like such a notion, fearing that smaller members may be left behind. Mr Ahern replied that the need to reach some form of agreement was crucial and pressing.

The constitutional issue, and the need for Mr Ahern to heal rifts, will take centre stage during Ireland's six-month tenure.

Despite being one of the EU's smaller nations, Ireland is recognised for its diplomatic prowess, and its negotiating skills

But Dublin's sixth stint of guiding and organising EU business will also encompass the arrival of 10 new member states who are joining the EU club, plus elections for the European Parliament. And that's just for starters.

Ireland has, on the whole, done well from Europe. In recent years the traditional enthusiasm for Europe here may have wavered - demonstrated, for example, by Irish voters rejecting the Nice Treaty in a referendum.

But there is no doubting that Ireland's infrastructure has benefited from huge amounts of EU cash. The new bridge and bypass near the town of Drogheda is one sparkling example.

Being a keen member of the European family has helped the Irish economy move into the fast lane. The Irish economy has boomed in the last decade, and many accession states preparing to join the EU will look at its success as a model they would love to copy.

Irish style

Now Ireland is picking up what many see as a poisoned chalice. Mr Ahern told me how he would like to be able to focus on what he sees as "real" issues affecting Europe's citizens, such as employment and education, and said that improving economic competitiveness is a priority during the rotating Presidency.

In addition, Ireland's historic ties with America mean it has its own version of a "special relationship", and that may help soothe recent tensions between the EU and the US over trade and Iraq.

John Bruton was Taoiseach last time the Irish held the presidency in 1996, and he believes that humour and charm can also help in achieving agreement. The Irish, he believes, bring an informality to proceedings.

He said he would judge his successor's time at the reins of the EU on whether an agreement is reached on the constitution.

Perhaps a key to the success or otherwise of Ireland's presidency will be its style of doing business. Mr Ahern has been keen to lower expectations and will want to avoid exacerbating existing splits by demanding too much too soon.