Taoiseach Enda Kenny and Tánaiste Joan Burton will meet this morning to finalise the shape of the new Cabinet, having agreed yesterday on the policy objectives of the Coalition for the remainder of its term.

The Fine Gael and Labour Party leaders met twice yesterday to finalise agreement on policy, with the second meeting ending shortly after 8pm.

Only the two leaders were directly involved in the talks, with their chief advisers on hand for consultation on key policy areas.

Immediately on her election as Labour leader last Friday, Ms Burton identified three key negotiation issues.

They were improving the living standards of ordinary people, providing extra resources for social and affordable housing, and the establishment of a low-pay commission.

Labour sources said yesterday progress in these areas was a higher priority than getting control of any particular Government department.

There was no hard information about the shape of today’s reshuffle, with both sides remaining tight lipped yesterday. However, there was a consensus about some of the key changes expected today.

It was widely accepted in Leinster House that Minister for the Environment Phil Hogan will be Ireland’s next European commissioner.

There was also a strong view in both Fine Gael and Labour that Dr James Reilly will move from the Department of Health.

With vacancies expected at Environment and Health, there was speculation Minister for Transport Leo Varadkar was in line to take over one of these portfolios.

Minister for Agriculture Simon Coveney has been linked with a possible move to Foreign Affairs, but some in Fine Gael feel he is too important in his current role and should remain there.

There was considerable speculation about possible changes at the Department of Jobs and Enterprise in light of the expressed desire of new Labour deputy leader Alan Kelly to take over that portfolio.

That was being resisted by the Fine Gael side, with the incumbent Richard Bruton making it clear that he wished to remain in the department.

Strongly opposed

While there were some suggestions the department could be divided up, sources in both parties last night said nothing could be taken for granted about what might happen.

Mr Bruton is known to be strongly opposed to breaking up the department.

A senior Labour source last night acknowledged “Fine Gael have put up a fight” for the Department of Jobs.

The only certainties about the reshuffle are that Minister for Finance Michael Noonan and Minister for Public Expenditure Brendan Howlin will remain in their posts and will join the Taoiseach and Tánaiste on the Economic Management Council.

At the last meeting of the outgoing Cabinet yesterday, Mr Kenny paid a special tribute to former tánaiste Eamon Gilmore for the work he had done in the national interest over the past three years.