Discussions between Fianna Fail and the Progressive Democrats on forming a government resumed at 8.30 this morning, with optimistic predictions a deal may be reached by this evening. It is the third day of talks.
The Taoiseach said on Monday that he hoped to reach a deal by the weekend. Both sides reported good progress yesterday after almost seven hours of negotiations.
If the talks are concluded successfully it is expected that a programme for government, similar to that produced in 1997, will be published.
Matters of contention have been parked until later in the negotiations and the issue of the division of Cabinet seats between both parties is being left to the Taoiseach and the Tánaiste, Ms Harney.