European Agriculture Commissioner Phil Hogan has said he expects a government will be formed in Ireland within weeks.

Speaking in Dublin on Wednesday afternoon, the former Fine Gael minister for the environment said it was important Ireland had a new administration in place as soon as possible.

“You can see the difficulties that are there in Spain and Portugal. In the past we’ve a lot of experience of how matters in the financial world are not helped by instability,” Mr Hogan said.

“So I expect that that the parties will form a government in due course. It’ll take a couple of weeks.”

Mr Hogan did not specify which parties he believed would form the government. Asked how he felt about the prospect of Fine Gael doing business with Fianna Fáil, he said that was a matter for the parties.

Mr Hogan also refused to be drawn on Irish Water, saying he would not answer questions that pertained to “domestic” matters. He said it was not for him to advise people in that way.

Earlier on Wednesday, Minister for Agriculture Simon Coveney said he does not think it would be a good idea to have a rotating taoiseach but said the two largest big parties had a responsibility to "make a new structure work".

He was responding to questions from reporters in Dublin on Wednesday morning who had asked for his view on the role of taoiseach being shared between Fine Gael and Fianna Fail as part of a grand coalition arrangement.

“Well I’m not a fan of it, that’s for sure. I don’t think it’s a good idea in terms of good governance and stability and authority which I think any taoiseach needs to have in a government,” Mr Coveney said.

“On a minority government that is a possibility of course but we are not going to sign up to a minority government that is not going to last any period of time. I think that would be foolish.”

He said a majority government would involve a lot of discussion and “teasing out” and trying to agree a programme for government.

“Whether that’s with two large parties or whether it’s with one large party and lots of others contributing to that, well that’s a process that’s going to take time.”

Mr Coveney described the current political landscape as “very complex”.

He said the political parties, “particularly the bigger ones”, had an obligation to “make a new structure work” but a process had to be gone through before there was a credible outcome.

He said Fine Gael would not compromise on a series of principles if it was going to remain in government, and Irish Water would not be abolished.

Fine Gael would not go into government at any cost, he added.

Mr Coveney said Ireland needed “stable and sensible government”. There were no set time deadlines.

He also said Enda Kenny’s position as Fine Gael leader was not an issue at the moment.

“He will lead the process of discussion and negotiation and planning for trying to put together a new Fine Gael-led government.”