Taoiseach and Micheal Martin to meet before full-scale negotiations

The Irish Examiner understands that while neither party leader issued any demands to clarify if an election will be called by a certain date, both agreed to appoint negotiating teams this week before full-scale talks begin after the weekend.

Sources in both camps said the leaders were keen to meet last night as Mr Martin will be in Brussels on Wednesday and Mr Varadkar from Wednesday evening until late on Thursday — a schedule which would have led to a needless information vacuum.

In the immediate aftermath of last week’s budget — which signalled the end of the existing three-year confidence and supply deal — Mr Varadkar threw down a challenge to Mr Martin by calling on him to agree a new two-year deal by Halloween.

The claim was rejected by Fianna Fáil sources, who insist only a one-year deal will be acceptable, raising the prospect of a snap election.

The fears grew over the subsequent days after Denis Naughten’s resignation as communications minister, threatening the minority Government’s hold on power. A potential election date of December 7 had been mooted at the height of the resignation crisis.

However, the securing of Sean Canney, Michael Lowry and Noel Grealish’s support at the weekend means the Fine Gael-led Government still has the 57 Dáil votes needed to continue the confidence and supply deal for now — giving Fianna Fáil a reason not to force an immediate election while Brexit remains unresolved.

In separate statements last night, Fine Gael and Fianna Fáil confirmed both party leaders met at Government Buildings last night and that “teams from the parties will be appointed this week and will hold their first meeting next week”.