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Fine Gael leader Leo Varadkar and Micheál Martin of Fianna Fáil are expected to sign a framework document on Tuesday on how a coalition government would work between its two parties.
The document is expected to include commitments that there will be no income tax increases during the life of the next government, speeding up the implementation of the Sláintecare plan, testing a state child care scheme, and increasing the delivery of affordable and social housing, among other issues.
It is understood that both Mr. Martin and Mr. Varadkar will discuss on Tuesday how to approach other parties and groups with the document. Between them, the two parties have 72 Dáil seats, eight fewer than most, and both have said they want a smaller third party and some independents in a coalition government.
The framework document is said to be light on specific policy measures, but rather is intended to be “designed to invite” other parties such as the Social Democrats, Greens, and Labor.
So far, Social Democrats have said that their policies would be incompatible with a Fine Gael-Flanna Fáil government. Labor has said they want to go into opposition, and the Greens are calling for a government of national unity.
Social contract
The framework document is based on a series of “missions”, and tries to face the Covid-19 crisis, rebuild the economy in its wake and tackle the problems that arose in the general elections, such as health and housing . It will also seek to build a new “social contract”.
Other measures included in the document to appeal to those parties include the possibility of a national living wage, although an exact level is not defined.
It also mentions the reduction of the State’s carbon emissions, but does not mention a precise objective.
Other measures in the document are said to include a commitment to take advantage of additional resources allocated to the health sector during the Covid-19 crisis.
Well-placed sources said the document plans to use economic growth to address a deficit caused by additional spending to deal with Covid-19 rather than the austerity measures seen during the financial collapse.
Sources cited continued support from the European Central Bank to help Ireland in the post-crisis period, although it is unclear if this is included in the document.
Among the proposals that are said to be included are grants for companies affected by the pandemic.
Housing policy is understood to have seen a significant shift in emphasis compared to the previous Fine Gael / Independent minority government approach.
Affordable housing
The Land Development Agency will play a greater role in offering affordable and social housing as well as affordable rental houses.
The promise not to raise income taxes was said to be key to Fine Gael, but it does not rule out other tax changes, such as the removal of some tax incentives.
Health Minister Simon Harris said Monday that a majority government was needed to meet the “massive challenges” ahead. “We need other political parties to join us.”
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