Though both parties insisted that they were observing a media blackout, the mood music from the latest round of talks on government formation last night was cautiously optimistic.

Minister for Agriculture Simon Coveney – who has been one of the principal driving forces behind the talks – suggested yesterday that he believed a deal to allow the next government to be formed could be finalised by Thursday.

Some Fine Gael sources last night thought that a bit on the optimistic side. One Minister said it was more likely that the process would conclude next week.

However, other Fine Gael sources were more upbeat, saying that chances of meeting the Thursday deadline were “very good”.

Independent TDs were cautious, with one saying that the timetable looked “tight”.

None of the sources thought that a deal was unlikely.

One source said there was a noticeably more businesslike tempo to the discussions, a sense of urgency on reaching agreement.

Nine weeks after the election nobody is counting their chickens, but, going by yesterday’s exchanges at Government Buildings, forming the next government now appears to be a matter of when not if.

Simultaneous meetings of the Fianna Fáil and the Fine Gael parliamentary parties are expected tomorrow. They are likely to approve last week's draft agreement between the two parties' negotiators.

The talks with Independents will recommence this morning.

Thrashed through

While teams from the two groups of Independents and Fine Gael thrashed through the policy discussions yesterday, everyone is keeping one eye on the Dáil numbers.

Although it may be possible for Enda Kenny to be elected taoiseach with fewer than 58 votes because of other abstentions, Fianna Fáil has told Fine Gael that its agreement to support a minority government is contingent on him securing the 58 votes necessary to command a majority in the Dáil with a Fianna Fáil abstention.