Positive news on economy could kickstart parties’ talks

Further positive economic predictions due out next week could help open up breathing space for Fianna Fáil and Fine Gael to begin negotiating matters for a minority government.

Sources in Fianna Fáil say that fresh exchequer figures, expected on Monday, could help allow both sides resolve their demands when leaders Micheál Martin and Enda Kenny begin talks. Increased employment, more taxes and potentially a bigger ‘fiscal space’ to spend in the immediate years would allow for a broader agreement, including possibly breaching differences on Irish Water, say party sources.

Fianna Fáil will continue talks with Independents on Monday and Tuesday, to try to form its own minority government.