Taoiseach Enda Kenny and British prime minister David Cameron have convened talks between the Northern Ireland parties to try and break the political impasse in Stormont.

The talks will focus on “confidence issues arising from the legacy of paramilitarism” as well as the implementation of the Stormont House Agreement, which proposed contentious reductions in the social welfare budget.

In a statement on Thursday, Mr Kenny said the discussions will begin next week and said it is “absolutely critical that these talks are advanced with a sense of urgency and that all of the parties constructively seize this opportunity”.

The talks will be overseen by Minister for Foreign Affairs Charlie Flanagan and secretary of sate for Northern Ireland Theresa Villiers.

Mr Kenny said: “I spoke by phone yesterday with prime minister Cameron regarding the current serious situation in Northern Ireland.

“We both agreed that immediate steps needed to be taken to address the key critical issues which threaten the stability of the devolved institutions. Since then, secretary of state Villiers and Minister Flanagan have had separate further contacts with the parties.

“In the light of the urgency of the situation, the prime minister and I have agreed that secretary of state Villiers and Minister Flanagan should, as appropriate within the strands of the Good Friday Agreement, convene immediate talks next week with the political parties who subscribed to the Stormont House Agreement.

“We envisage that this process of talks should be short, focused and intensive and deal with full implementation of the Stormont House Agreement as well as the trust and confidence issues arising from the legacy of paramilitarism.”