The early part of the election campaign saw much sniping between Fianna Fáil and Fine Gael as they sought distance from the rival party after 4½ years of coalition.
For instance, both parties sought to pick holes in the calculations underpinning their respective manifestos. Now they look to be on course for another stint in power together.
In truth there is much crossover between the election pledges made by both Fianna Fáil and Fine Gael.
Both parties want to cap childcare fees at €200 per month per child and raise the State pension to €350 per week.
Their promises on income tax are not wildly different and both parties would continue schemes to help people get on the property ladder. All of that should aid the development of a programme for government.
[ Fianna Fáil to seek the upper hand in next government ]
But there are also some issues that may present stumbling blocks as negotiations ramp up. Here are five potential points of conflict.
A new department of infrastructure?
With infrastructure projects facing delays and escalating costs Fine Gael has proposed a department of infrastructure, climate and transport. This would “streamline and unify all aspects of infrastructure delivery”. There are misgivings in Fianna Fáil on this, with some concern that it could delay projects in some areas such as the Department of Education, which already has a unit dedicated to delivering new buildings.
Justice
Fianna Fáil placed a huge emphasis on justice issues during the election campaign and may well seek the portfolio as part of any coalition deal. Both parties want more gardaí and improved recruitment and training. Fianna Fáil wants a stand-alone transport police while Fine Gael is suggesting increasing deployment of gardaí on public transport. While these are different approaches the bottom line is more policing on buses and trains. There is perhaps more potential for conflict if Fine Gael digs in and tries to keep the justice portfolio. But will it do this after holding the brief for 14 years?
[ Labour holding ‘robust’ discussions on government formation, says BacikOpens in new window ]
Acorn savings fund
The so-called acorn savings account proposed by Fine Gael would see newborns get €1,000 into a savings account to which their parents can contribute. Fianna Fáil leader and Tánaiste Micheál Martin said on the campaign trail he was not “overly exercised by it”, but indicated the capacity for better-off families to add to the account raised equality issues. He said funding it could not get in the way of Fianna Fáil priorities such as reducing the pupil-teacher ratio. However, he also said: “It’s not something we’d die in a ditch on.”
Changes to VAT rate
Fine Gael promised to lower the 13.5 per cent VAT rate to 11 per cent for businesses such as restaurants and hairdressers. During the campaign Fianna Fáil immediately raised concern that this would raise VAT on energy prices as well. It has pledged to keep VAT on gas and electricity bills at 9 per cent. Fine Gael promised domestic energy rebates and an energy grant scheme for businesses to offset any increase. When it arose during the election race Mr Martin said his party did not “rule anything out” in relation to a VAT change but suggested a broad review of tax rate for businesses was needed. Could this issue be easily kicked down the road to Budget 2026 talks?
Decriminalising drugs
Fianna Fáil’s manifesto includes a proposal to decriminalise drug possession for personal use. It later moved to clarify that this meant cannabis, not harder drugs. There is no such commitment in Fine Gael’s manifesto. During the campaign Fine Gael leader Taoiseach Simon Harris urged caution over this highlighting the “health dangers” of cannabis. He asked: “Does Irish society really want to move to a point where we are decriminalising drug taking? I’m not sure and I certainly don’t. I do think we need to tease these things through.” No doubt there will be much teasing through of various issues when coalition talks begin in earnest.
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