Fianna Fáil and Fine Gael negotiators are expected to meet representatives from the Independent Ireland party on Thursday morning as government-formation talks continue.
The Independent Ireland party – which was formed by Independent TDs before the election and returned with four TDs – has repeatedly expressed its desire to be involved in negotiations on a new government but few government sources believe an agreement is likely.
Party leader Michael Collins said on Wednesday that any deal with his party would be based “on policies” and not on “parish pump issues” like other prospective coalition partners. He accepted, however, that it appeared the preferred partners of Fianna Fáil and Fine Gael were elsewhere.
Some in Independent Ireland believe that the government is engaging with their group and with the Healy-Rae brothers without any expectation of securing their support, but rather as a tactic to moderate the demands of the Regional Independent Group, convened by Michael Lowry.
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It is understood that the Regional Independent Group has sent a document outlining its policy priorities to the Fine Gael and Fianna Fáil negotiators which is currently being considered. Another meeting between the two parties and the Independents is likely in the coming days, it is understood, mostly likely on Friday.
No discussions have yet taken place between the two sides about a crucial element of any deal – possible ministerial jobs for some Independent TDs.
Sources reported steady progress in the talks between Fianna Fáil and Fine Gael, which continued on Wednesday with discussions on climate (for the second time this week), energy, housing and homelessness.
Officials are understood to be drawing up a series of documents based on the general election manifestos of each party which are then being discussed by negotiators line by line. An agreed document emerging from this process will then serve as the basis for the next programme for government.
Party leaders Taoiseach Simon Harris and Tánaiste Micheál Martin were due to meet on Wednesday evening to review progress and are also expected to discuss the structure of the new administration – whether any new departments should be created and the possible amalgamation or reform of existing departments.
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A new department of domestic affairs, as proposed by Fianna Fáil during the general election campaign, is expected to be created, and will be given responsibility for immigration and asylum affairs.
It is not yet clear if the idea proposed by Mr Harris of a new department of infrastructure will happen, or if it will be assigned to the existing Department of Public Expenditure. Any creation of new departments is likely to lead to existing departments being merged or changed. There are currently 18 government departments, though 15 is the maximum number of Cabinet Ministers. While most Ministers have responsibility for one department, some – including Mr Martin, who heads the Department of Foreign Affairs and the Department of Defence – have more than one.
Though recent buoyant exchequer returns have underlined the resources available to the next government it is understood the new government will have to agree and submit a medium-term fiscal plan to the European Commission after its formation.
The commission describes such plans as “the cornerstone of the EU economic governance framework”.
“They set out the member state’s fiscal path as well as priority public investments and reforms for four or five years depending on their regular length of the respective legislative term,” the commission says in an explanatory document. “These policies should ensure sustained and gradual debt reduction and sustainable and inclusive growth, avoiding a pro-cyclical fiscal policy.”
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