Minister for Foreign Affairs Charlie Flanagan has said he still believes there is time to reach agreement in the Northern talks by the end of the year despite the latest high-profile breakdown.

Mr Flanagan said it was "positive" that all parties had reconvened talks following the abrupt departure of Taoiseach Enda Kenny and British prime minister David Cameron from Belfast on Friday morning.

He said the fact that talks continued in Stormont House, chaired by DUP leader and First Minister Peter Robinson, showed a "level of focus" that was encouraging.

“I think it’s important that all parties renew their focus, and in the presence of Peter Robinson, all the political parties including Sinn Féin did commit themselves to try and reach agreement.”

Mr Robinson and Northern secretary Theresa Villiers were involved in the talks that continued into the afternoon. Both will return to Belfast next week in an effort to bridge the gaps between the parties on flags, parades and the past. In addition, there are ongoing wrangles on budgets and social welfare that need to be resolved by the end of January.

Agreement

Mr Flanagan, speaking to

The Irish Times

, emphasised the need for an agreement by Christmas.

"I still believe there is time to bring the matter to an end. I am back next week as is Theresa Villiers. I am satisfied that the people of Northern Ireland want this to be concluded as quickly as possible."

Mr Flanagan said an agreement was needed by the end of the year. “I don’t believe any resumption in the New Year is a viable option. The gaps need to be bridged in a matter of days,” he said.

“It’s my view we should work to reach a conclusion next Thursday and Friday. It’s not my intention to return in the New Year.”

Outstanding issues

Outlining why the latest effort to reach agreement had failed, Mr Flanagan said it became patently clear at an early stage that outstanding issues would not be resolved. He also defended the decision of Mr Kenny and Mr Cameron to leave the talks. He expressed no view on whether the Government deemed the £1 billion offer by Mr Cameron – which was widely criticised by parties in the North – sufficient or not.

“It was disappointing that a deal was not concluded but it was made clear by Enda Kenny and David Cameron what was required to cross the bridge. While progress was made over a lot of the difficulties, serious financial gaps remain.

“Decisions relating to welfare reform, and broader budgetary issues, remain unresolved.”

On the decision by the two leaders to depart the talks, he said: “It was made clear by both leaders that their engagement was going to be no more than overnight. On Thursday, meetings were ongoing from lunchtime until 2.30 in the morning and it was agreed to resume at 8am.

“Some short time thereafter, it became clear the gaps were too wide.”

Tánaiste Joan Burton, also a central participant in the Belfast talks, said progress had been achieved, but it was clear parties needed more time to consider the key issues.

“I believe the scope and potential is there to achieve a deal. But the complexity of the issues concerned and the implications of what has been proposed must be carefully examined in order to achieve a comprehensive agreement that successfully deals with all issues,” she said.