Fine Gael and Fianna Fáil to meet again in January with Soc Dems and Independents

Eva Osborne and Cate McCurry, PA

Fine Gael and Fianna Fáil will meet again in early January to resume talks on the programme for government.

In a statement on Friday evening, Fine Gael said the two parties had met again and had made "progress on various issues".

The party said engagement will also continue with the Social Democrats and Independents in January.

Discussions between the two main coalition partners in the last government got under way in recent weeks.

They are expected to re-enter government together and replace the Greens with a group of independents as junior partners.

This gained momentum when Regional Group TD Verona Murphy was backed by Fine Gael and Fianna Fáil to become the next Ceann Comhairle when the Dáil returned on Wednesday.

The Labour party has ruled itself out of government formation talks with Fine Gael and Fianna Fáil, blaming “a policy gulf” and different visions for Ireland.

The parliamentary party held a meeting on Thursday afternoon during which the decision was put forward and agreed.

Party leader Ivana Bacik said: “I was updating colleagues at that meeting on the engagements we’ve had with both Fine Gael and Fianna Fáil in recent weeks and I do want to acknowledge we’ve had engagements, it’s been very useful.

“However as I indicated to the parliamentary party today, following the engagements we’ve had, I’ve formed the assessment that it is not possible to for us to enter any negotiations on government formation.”