DUBLIN, IRELAND THE IRISH PARLIAMENT BUILDING
Ireland’s political landscape has been transformed by the election after Sinn Féin won the popular vote © FINANCIAL TIMES

Ireland’s traditional ruling parties have held “preliminary” talks that could lead to a coalition deal to shut Sinn Féin out of government despite surging support for the nationalists in an inconclusive election this month.

Leo Varadkar’s centre-right Fine Gael and centrist opposition Fianna Fáil have dominated Irish politics for close to a century, alternating in government but never ruling together because of historic divisions that stretch back to the country’s civil war in the 1920s.

They don’t have enough seats to form a coalition without each other after ruling out a deal with Sinn Féin because of its leftist economic policies and links with IRA paramilitaries — concerns that were amplified last week when the county’s police chief said the party was still overseen by the “army council” of the paramilitary group.

Micheál Martin, Fianna Fáil’s leader, said he was “willing to engage” in formal coalition talks after meeting Mr Varadkar on Tuesday for the first time since the February 8 election. But the taoiseach said he “continues to prepare for opposition” after trailing into third place, a stance that is seen in political circles as a temporary holding position.

They have agreed to meet again at a later date, although Mr Martin said no government will be formed when the Dáil assembly meets next week. The two parties would need support from Greens and Independents for a stable majority in parliament.

Ireland’s political landscape has been transformed by the election after Sinn Féin won the popular vote and the second-highest number of Dáil seats, ahead of Fine Gael and only one less than Fianna Fáil. Mary Lou McDonald, Sinn Féin leader, has tried to stitch together a left-leaning coalition but lacks numbers.

Mr Martin said: “I did put to [Mr Varadkar] that we were willing to engage and that we were of the view that both parties should commence discussions, even on an exploratory basis in terms of policy and in terms of a programme for government.”

He added: “It’s fair to say the taoiseach reiterated the Fine Gael position that they want to go into opposition and that it’s up to others to form a government. I was very clear that as far as we’re concerned, we’re absolutely clear in terms of who we are in discussion with and negotiations with.”

Mr Varadkar meets his MPs on Wednesday but a close ally said he was unlikely to seek an immediate mandate from them to enter coalition talks. The prime minister said he discussed housing, climate change, health and cost of living with Mr Martin, adding that he “encouraged” Fianna Fáil to engage with other parties on government formation.

Politicians and analysts believe Mr Varadkar will ultimately agree on talks but a prolonged deadlock is still in prospect.

Michael Marsh, a veteran analyst and emeritus professor of Trinity College Dublin, said any deal between Fine Gael and Fianna Fáil would have “great significance” historically. “These were the twin poles of the party system, and people who liked one didn’t like the other. The primary difference is each one is not the other,” he said.

The policy differences between the parties were slight, Mr Marsh added. “I don’t think there are policy differences that discussions couldn’t resolve.”

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