Enda Kenny elected Ireland's new Taoiseach

Mr Kenny was elected in the Dail by 117 to 27 and will head a coalition government with the Labour party.

Mr Kenny said he stood in office with modesty.

"I want to thank the members of the House for the honour that they have given me here today," he said.

Mr Kenny said he was making a "covenant" with the people that the new Government will be open with the public.

He added: "In this current crisis ...honesty is not just our best policy it is our only policy."

Mr Kenny said the programme for government was fair and truly radical.

"It is the first day of a journey to a better future," he said.

He added that, by the centenary of the 1916 Rising, Ireland would be the best small country in the world in which to do business, raise a family and grow old with dignity and respect.

"It is my honour and my gratitude to lead a Government that will rise to the challenge of changing the direction of our country and lead us to the better future of which I've spoken," he said.