The possibility of the collapse of the Stormont institutions has been put back after Sinn Féin decided it would conditionally endorse the so-called "fantasy" budget currently making its way through the Northern Assembly.
The Deputy First Minister Martin McGuinness said on Monday evening that Sinn Féin would support the provisional budget which is due to be voted on in the Assembly next week.
Mr McGuinness said the Sinn Féin decision would “create the space to resolve the current difficulties” facing the Northern Executive over welfare reform.
There had been speculation that Sinn Féin would reject the budget which could have resulted in the permanent secretary of the Department of Finance being compelled to take over responsibility for implementing a reduced emergency budget.
Sinn Féin's decision however means that the DUP Minister for Finance Arlene Foster can press ahead with her "fantasy" or provisional budget notwithstanding that it will face a £600 million deficit later in the year – a shortfall the DUP contends is unsustainable.
This budget however is expected to put off the day of reckoning until the late summer or early autumn. Sinn Féin wants the British and Irish governments and the Northern parties to avail of that time to negotiate a way through the current deadlock over welfare reform.
The Sinn Féin decision will also keep Stormont functioning beyond July 8th when the British chancellor of the Exchequer George Osborne is due to unveil his budget, which could include a further £12 billion cut in the UK welfare bill.
Should those changes also apply to Northern Ireland it will be made more difficult to see how a comprehensive deal on welfare can be agreed at Stormont.
Other elements
Nonetheless, Mr McGuinness said supporting the provisional budget would allow the parties “explore a way forward” on the welfare issue. In the meantime he said other elements of the Stormont House Agreement should proceed such as mechanisms to deal with the past.
This is problematical however as Secretary of State for Northern IrelandTheresa Villiers has hitherto insisted that the release of £2 billion in fundraising measures for such proposals hinges on acceptance of welfare change.
“There remains a fundamental challenge for the Executive around welfare protections,” said Mr McGuinness.
“Any further cut to our budget will dramatically impact on frontline services, on our economy and on our society. That is not sustainable and it is a scenario that is not acceptable to Sinn Féin,” he added.
