Parties name their negotiators

The two main parties striving to crack a deal on coalition government have named their negotiation teams.

Taoiseach-designate and Fine Gael leader Enda Kenny will meet his Labour counterpart Eamon Gilmore again tomorrow as the two sides ratchet up the talks.

Under pressure from Europe, the two sides have set a weekend deadline to form a stable pact and programme for government.

Mr Kenny’s team will be led by highly-regarded finance spokesman Michael Noonan, Phil Hogan, who masterminded the historic election success, and combative front-bencher Alan Shatter.

Mr Gilmore’s negotiators include deputy leader and finance spokeswoman Joan Burton, former leader Pat Rabbitte, constitutional expert Brendan Howlin and policy director Colm O’Reardon.

The two leaders held the first behind-the-scenes talks in Leinster House, Dublin, this evening.

Tomorrow will see the first official phase of hard bargaining on portfolios and policies.

Buoyed by historic success at the polls, both Fine Gael and Labour are said to be confident a deal can be done in such a short time-frame and programme for government talks have been known to run for weeks.

Negotiations will be complex, with the parties at odds 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 highest-profile and most heavily scrutinised department.

As the parties remained tight-lipped over initial progress, a resurgent Sinn Fein, 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 the centre-right Fine Gael.

A quick deal is needed as Ireland faces a series of challenging hurdles linked to its multibillion-euro bailout loans from the International Monetary Fund and Europe, and the banking crisis.

Outgoing Taoiseach Brian Cowen wished the leaders well and offered both sides access to his office during the talks.

The parties are also aiming to put a deal on paper before the Dáil sits 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 the €85bn.

Meanwhile, Mr Kenny 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 that 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 like-minded independents is another option for Fine Gael.

But it could prove difficult, given that a sizeable number of left-leaning TDs were elected at the weekend, 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.