The Taoiseach Bertie Ahern has said Ireland will have to take measures to protect its social welfare system from abuse when 10 accession states join the EU in May.
However, speaking at a press conference in Government Buildings, Mr Ahern said the measures would have no impact on people from these countries being able to find work here.
'I agree with the UK Government position that our economies will benefit from EU citizens coming here to work legally and pay taxes. We have a strong economy and we will welcome people who want to come here and work,' Mr Ahern said.
'If we do have a serious disruption in the labour market, we have the power to reintroduce work permits but I hope that will not happen,' Mr Ahern added.
Earlier Britain's Home Secretary, David Blunkett, barred migrants from the ten countries from claiming benefits for at least two years.
The announcement followed British government concerns that tens of thousands of migrants would be drawn to Britain when the new members join the bloc.
Mr Blunkett told the House of Commons a new register will be created to monitor the number of eastern European arrivals and the jobs they do.
He said ministers would re-impose restrictions on the labour market if immigrants take too many jobs in Britain.
The move means that Ireland will be the only EU state allowing the 10 new EU members unfettered access to its labour market.
Reacting to the British government's proposals, the Minister for Social Community and Family Affairs, Mary Coughlan, said she will be examining the implications of their decision and will be having further discussions with her Cabinet colleagues in due course.
