Acting Taoiseach Enda Kenny has said it was his "earnest hope" that a government could be formed, following talks between Fine Gael and Fianna Fáil negotiating teams last night.
Some in Fine Gael now hope Fianna Fáil will acknowledge that a minority government led by party leader Micheál Martin is unlikely, which would allow Independent TDs declare for Mr Kenny.
Within Fianna Fáil there are differing views, although it is acknowledged that a Fine Gael-led minority government is the more likely option to emerge from the latest manoeuvres.
Speaking in the National Concert Hall, Mr Kenny said major efforts had been made to form a government that had the capacity to tackle "the serious national and international challenges" facing Ireland.
"It is my earnest hope that we can achieve a government that can deliver in the national interest and for the people," he said, after opening the refurbished Kevin Barry Rooms which hosted the 1921 and 1922 Treaty debates.
Rural five The Social Democrats, the Independent Alliance and the so-called
rural five group of TDs will meet today. The Alliance has insisted it cannot make a decision on who to vote for Taoiseach until negotiations between the two parties have finished.
An Independent TD being courted by both Fine Gael and Fianna Fáil has said the two parties must agree on how a minority government could work, as well as on policy issues such as water charges and the universal social charge .
Roscommon Independent Denis Naughten – one of the so-called “rural five” group – said progress must be made before non-party deputies show their hands.
Mr Kenny and Mr Martin met their respective negotiation teams ahead of talks between Fine Gael and Fianna Fáil which ended at 8.30pm after 90 minutes.
In a statement yesterday, Mr Naughten said it was pointless for the Independents to engage in further talks until Fianna Fáil and Fine Gael had settled key issues between themselves.
“To date we still have not got agreement between the two parties that they will even respect a majority vote of the members of Dáil Éireann for a candidate for Taoiseach,” Mr Naughten said.
Mr Kenny and Mr Martin must, he said, decide on how decisions will be made, “how it will resolve unforeseen divergent positions, how it will pass a budget and how it will have an effective Dáil majority”.
Compromise
“We also need to see the compromise between the two parties on Irish Water and water charges, on the phasing out of the USC, an agreement on the actual ‘fiscal space’ available for the next five budgets and the breakdown between spending on public services and taxation,” he said.
“Until we see this, and until we have clear, unambiguous answers to the questions raised above, then it is pointless engaging in any further talks with Fine Gael or Fianna Fáil.”
He also claimed many people were “not anxious to be in government” for the next two budgets because of the relatively tight fiscal parameters, with an estimated €500 million available for the next budget.
