The leaders of Fine Gael and the Labour Party met today to open discussions on a common stand for the next general election.
At a symbolic lunch after their meeting both leaders ruled out joint candidates in the next general election.
"Fine Gael and Labour will stand their own candidates and run them as hard as we can. What we want is to maximise the transfer votes between the two parties and their candidates," said Fine Gael leader Enda Kenny.
Labour leader Pat Rabbitte went on to say that both parties were committed to agreeing a statement of intent that will set out the broad orientation of a future government but acknowledged the differences between the parties.
"Of course there are some differences between the parties, naturally enough, but I think there are certain big issues that need to be tackled in our society by common consent - health, crime, childcare," he said.
He relegated detailed policies for government until "after the votes are counted."
In a joint statement the leaders said: "This failed Government needs to make way for a new government- one that can actually tackle the challenges that face Ireland. The events of recent months have shown again and again that they have lost energy, have run out of ideas and are failing to provide the Irish people with the sort of initiatives that are required to meet the challenges of our society."
Both leaders said they were encouraged by the public response so far to the prospect of an alternative government. "We're 11 months or more out from a general election and already people appreciate there is an alternative government in prospect," added Mr Rabbitte.
The leaders agreed that they would meet during the summer recess and that their respective offices would continue to liaise on the project.
The parties will have to agree on the selection of teams of negotiators to tease out areas where the parties can have common policies, though none of this is likely to emerge today.
In addition, the leaders will have to come to some agreement about candidate selection - which could pose serious difficulties for local constituency organisations in both parties.
Mr Rabbitte's position has been considerably strengthened following his emphatic victory on coalition strategy at his party's Tralee conference.