Kenny and Gilmore hold first talks
The Fine Gael and Labour leaders met this evening to begin the process of forming of a new Government, despite there being 12 seats left to fill in the 31st Dáil.
As counts continue in the constituencies of Laois-Offaly, Galway West and Wicklow, Enda Kenny and Eamon Gilmore met for just under an hour after a brief telephone discussion this morning.
This evening's meeting of the two party leaders is expected to be followed by formal discussions on a programme for government by three-member negotiating teams from each side.
The Fine Gael negotiating team is Phil Hogan, Michael Noonan and Alan Shatter.
The Labour Party team is Joan Burton, Pat Rabbitte and Brendan Howlin.
Meanwhile the possibility of Sinn Féin joining an alliance with other like-minded independent candidates has emerged, in an effort to overtake Fianna Fáil and become the main opposition party in the Dáil.
So far Fianna Fáil have 18 seats, while Sinn Féin have 13.
Sinn Féin, which trebled its presence since the last election, warned Labour to expect a tough ride if it chooses government over opposition.
The Unite trade union also called on Labour to back away from joining with Fine Gael.
Aengus O Snodaigh, TD for Dublin South Central, said: “The Labour Party in particular have sold themselves as a friend of the working people. If they go into bed with Fine Gael then they will be very, very strange bedfellows and we will see what policies they introduce.
“And we will tackle them on the ground and in the Dáil on every one of those policies.”
The leaders of the two top parties spoke on the phone to thrash out plans for the first round of horse-trading.
The talks will be complex with Labour and Fine Gael over the length of time it will take to turn around the budget deficit, tax, public sector cuts, water charges and how to tackle bondholder responsibility for banking debts.
Both have strong performers on economic and financial policy – the most high profile and most heavily scrutinised department.
Outgoing Taoiseach Brian Cowen wished the leaders well in the talks and offered both sides access to his office.
The parties are under intense pressure to strike a deal on a new coalition before the week is out and with the Dáil due to sit again on March 9.
Mr Kenny is due to travel to Helsinki on Friday for a meeting of the European People’s Party, with which Fine Gael is affiliated.
The contacts are intended to open the door for a charm offensive and garner support to renegotiate Ireland’s €85bn loan from the International Monetary Fund (IMF) and Europe.
Mr Kenny has received a series of messages of congratulations from across Europe including German Chancellor Angela Merkel and European Commission president Jose Manuel Barroso.
Fine Gael said during all conversations with European leaders Mr Kenny raised the issue of the IMF/EU bailout.
Prime Minister David Cameron has invited him to Downing Street.
Mr Gilmore, who will meet left-leaning European colleagues separately this Friday, is in prime position to join a coalition after steering his party to second place.
But Labour has warned it has its own parliamentary party hoops to jump through if it wishes to enter government.
Thrashing out a coalition with Independents could prove difficult given a sizeable amount of left-leaning TDs, while former stockbroker and Senator Shane Ross is also demanding a referendum on the IMF/EU loans.
Mr Kenny has vowed to force Europe’s hand on renegotiation of the deal – but has made no mention of a referendum.
Fine Gael remains on course for about 75 Dáil seats, just a handful shy of majority single party government in the 166-strong house.
