McGrath: coalition deal must satisfy demand for change

Fianna Fáil must secure a “radical” programme for government in any deal with Fine Gael that not only fights the coronavirus but offers new ways of tackling housing and health, a senior party figure says.

Finance spokesman Michael McGrath’’s remarks come as the two parties meet to negotiate health in their coalition talks and ahead of ordinary party members debating the move next week.

Mr McGrath believes that a deal with Fine Gael could be “achieved” within weeks, possibly by Easter, but that any coalition deal must also satisfy voter demands for change.

Following an opening meeting on the government formation talks between Fianna Fáil deputy leader Dara Calleary and Tánaiste Simon Coveney today, formal negotiations are set to begin tomorrow.

Mr McGrath said: “First and foremost we have to see if it is possible to negotiate a programme for government that is about real change and we won’’t be bringing any draft programme for government to either the parliamentary party or the members unless we are satisfied that it involves a new departure and sets out a new way of tackling the housing crisis and the wider issues in health, apart from the coronavirus.

“If we get to that point and we have a policy agreement that we can stand over, then we will have to sell that, and we will have to engage with our members and find a way of doing that in the context of the coronavirus crisis.”

Fianna Fáil’’s frontbench will tomorrow discuss the move by the two parties to enter formal coalition talks while Fine Gael’’s parliamentary party is expected to do the same next week when Taoiseach Leo Varadkar returns from the US from the St Patrick’’s Day celebrations.

Meanwhile, Finance Minister Paschal Donohoe said the potential of a Fine Gael-Fianna Fail coalition, effectively ending civil war politics, was a “very demanding political exercise” and that the country was “in extraordinary times”.

He also called on any party or group, including to Sinn Féin, who still want to form an alternative government to use a vote for Taoiseach scheduled for next Thursday to move such a proposal.

It is expected that both parties will push for a full programme for government that would last five years. This is despite calls by other parties, in particular the Green Party, for a temporary national unity government that would last three months and would work to fight the coronavirus.

Both Fine Gael and Fianna Fáil are also working out how the virus will impact on the country’s finances, including the need to lift EU spending restrictions and support banks handling debt.

This will involve easing the EU’’s stability pact rules, which Italy has managed to do, and working with the European Central Bank on how to support Irish lenders who cannot handle non-performing loans amid the virus crisis.