Talks between Fianna Fáil and the Progressive Democrats (PDs) to form the next government resumed this morning.
Discussions are understood to have centred on documents submitted by both sides yesterday. The policy issues which are predicted to cause the most difficulty are the proposed Campus Stadium Ireland, tax cuts and the privatisation of State companies.
Party sources from both sides refused to comment on whether the PDs would get two senior ministerial posts or whether former Attorney General, Mr Michael McDowell, was likely to replace Mr John O’Donoghue as Minister for Justice.
This morning’s meeting was scheduled to break at 11 a.m. to allow for a meeting of the PD parliamentary party. Party leader Ms Mary Harney is expected to brief TDs and Senators on the progress being made.
Although the Taoiseach, Mr Ahern, has said he wants the talks to conclude by the weekend, party sources from both sides said there was no time limit and talks would continue for as long as necessary.
Yesterday a four-hour meeting between negotiators on both sides was described as "practical and pragmatic".