LAST UPDATE | 1 hr ago

FIANNA FÁIL AND Fine Gael are to meet again today in the latest round of government formation talks.

The two parties met yesterday and discussed issues ranging from policy priorities to who their likely coalition partner may be.

Both have been expected to return to government since last month’s election, but need the support of another party or Independents following the near-wipeout of the Greens.

The two parties have previously said that they hope a government will be formed before the end of January.

In terms of policy, it is understood Simon Harris’s Fine Gael has seven negotiating priorities, while Micheál Martin’s party is prioritising housing and the cost-of-living measures as set out in its manifesto.

Possible changes to disability services are expected to feature in the talks – it’s considered an area both parties share common ground on, particularly after a bruising campaign for Simon Harris when it came up on the campaign trail for the Fine Gael leader in Kanturk.

Yesterday, the Social Democrats had separate meetings with both Fianna Fáil and Fine Gael. These meetings were described as “collegial” and useful. 

The Social Democrats parliamentary party will meet today to discuss the meetings and the party’s options. 

It’s understood that the view among Social Democrat TDs is that they remain serious about entering government and have not ruled themselves out just yet. However, sources have indicated that the party does not think Fianna Fáil or Fine Gael is willing to meet the Social Democrats’ five key priorities. 

Speaking to reporters after yesterday’s meetings, deputy party leader Cian O’Callaghan said one of the key stumbling blocks in talks was commitments on climate change and meeting emissions targets.

The Journal understands that the largest gulf is with Fianna Fáil and the agriculture sector. 

It is understood that discussions on housing policy were also positive and that the Fianna Fáil leader Micheál Martin was “surprised” by some of the Social Democrats policy goals in this area. 

With reporting by Christina Finn and Jane Matthews