Fine Gael and Labour are almost certain to enter into a transfer pact ahead of the next General Election after both parties agreed today to share power on Westmeath County Council.
Fine Gael leader Mr Enda Kenny and Labour Party leader Mr Pat Rabbitte signed the "Mullingar Accord" - a joint bid by their local councillors to work together to improve local services in the Midlands county.
This is the latest in a series of similar agreements put in place following the strong showing by both parties in the recent local elections.
In a joint statement, the party leaders said co-opertaion at council level was "a good indicator" of how the parties could work together if they were successful in the next general election.
Fine Gael leader Enda Kenny said: "The message from the recent local and European elections was clear that the Irish people are demanding a change of Government.
"It is the responsibility of the Opposition to build an alternative Government that puts the interest of the people first."
Mr Kenny said the agreement in Westmeath was "symbolic of what we can achieve if we work together".
Mr Rabbitte said any alternative government must reflect humane values and have management skills. "The present Government contains neither," he said.
He said: "This accord has a symbolism which is likely to go outside of Westmeath. . . . We will redouble our efforts to expose the failures of this Government in the new Dáil term.
"We will work to offer the public a choice based on values and decent policies."
In the Mullingar Accord, Fine Gael and Labour members will share power on Westmeath Co Council, where they have a majority for the first time ever after very successful local election results.