Talks are under way today between the Government and the social partners to try and find a social partnership agreement to succeed the Programmefor Prosperity and Fairness (PPF).
But the talks could be the shortest on record unless unions and employers can find some middle ground on pay.
The Taoiseach, Mr Ahern; the Tánaiste, Ms Harney; and the Minister for Finance, Mr McCreevy, will address today's gathering of the social partners in Dublin Castle.
The meeting will conclude business under the outgoing PPF, which gave workers wage rises of about 20 per cent over the past three years
Mr McCreevy is expected to say the state of the Exchequer finances severely limits the Government's options.
Under previous social partnership deals, income tax cuts were combined with pay increases to keep employers and unions happy. Workers' take-home pay rose significantly, and employers did not have to bear all the cost.
But it is already clear that tax cuts will not be a feature of any new agreement.
IBEC, the employers' body, says the pay increases conceded under the PPF were excessive, and this time around some employers will even be seeking a pay pause.