The Taoiseach has said US President Barack Obama has assured him that job creation by American firms in Ireland will not suffer under his new policies.

The assurances will assuage fears that the new US administration's tax policies would affect American companies operating abroad, and see a shrinkage of international jobs offered by US companies.

There have been fears that a protectionist approach by the Obama administration - aimed at keeping jobs and money in the American economy - could lead to jobs being pulled out of Ireland by US firms.

However, speaking after his meeting with President Obama yesterday, Brian Cowen said he had been assured that this wouldn't happen.

During his talks at the White House, the Taoiseach discussed a number of issues with Mr Obama, including the global recession, the banking crisis and the latest terrorist atrocities in Northern Ireland.

Speaking on Tuesday, President Obama said: "The bond between our countries could not be stronger.

"As somebody who comes from Chicago, I know a little bit about Ireland and the warmth, the good humour, and the fierce passion and intelligence of the Irish people is something that has informed our own culture, as well."

However, the "intelligence" Obama spoke off took a momentary dip, as the Taoiseach made an embarrassing gaff by reading the wrong autocue during a speech. Mr Cowen read out the first few paragraphs of President Obama's speech before realising his mistake, turning to the US President and saying: "That's your speech."

(DW/JM)