Speaking at the Institute for British-Irish Studies annual conference in Dublin, Michael Mansergh, Minister of State at the Department of Finance, said there was no stomach among mainstream parties south of the border for ending partition.

"The Republic is engaged in a major struggle to maintain, within the EU and indeed the euro zone, its economic viability and sovereignty," he said.

"It is hardly the moment to press claims to the north which we have renounced, and it has to be said, the advantages and flexibility of joining up with a small sovereign state in the present global turmoil are for the moment a lot less compelling today than they were two or three years ago."

Dr Mansergh argued that the Republic was in a serious battle for economic survival to maintain the freedom to make its own economic decisions.

"If we succeed we'll go on doing that, if we fail we may find other people making decisions for us," he warned.

Ulster Unionist deputy leader Danny Kennedy welcomed the comments and said that it was a recognition that the Good Friday Agreement had "signalled the death knell" for a united Ireland.

"I strongly welcome this acknowledgement from such a senior figure in the Republic's government; a figure that has had a significant influence in shaping Fianna Fail's policies towards Northern Ireland," he said.

"His belated recognition that the dreams of 'A Nation Once Again' have gone up in smoke is a vindication of the UUP's decision in 1997/1998 to face down Sinn Fein and force them into an internal UK settlement."