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Taxes, spending, and direct provision have been the main sources of disagreement in this week’s government training talks.
A source close to the talks said Fine Gael and Fianna Fáil’s pledge not to raise taxes to face the estimated financial consequences of € 30 billion has revealed that a “radical change” is unlikely in areas like the House.
“These people are accomplished politicians, so they have the ability to say no without saying no, but it is becoming clear that they are not going to compromise on anything they don’t want,” a source said.
The controversial Direct Provision system continues to prove an obstacle, as the parties spent two days this week discussing justice issues.
Fianna Fáil sources say the Green Party’s vision of “trying to accommodate everyone” is unrealistic given the dysfunction of the Irish property market.
Meanwhile, the Social Democrats and Aontú were excluded from the formation of the government this week.
The only TD chosen by Aontú, Peadar Tóibín, sent a letter to both Fianna Fáil and Fine Gael stating that his party will no longer participate.
“We have seen no evidence that Fianna Fáil or Fine Gael are actually seeking to press the reset button,” said Tóibín.
“None of the goals outlined in the Framework Document between Fianna Fáil and Fine Gael can be achieved sustainably unless fiscal injustice, the Apple Tax or our sovereign debt over-indebtedness is addressed.
“We cannot see any financial substance in the focus of these two parts.”
The Labor Party has yet to make a decision on the formation of the government, citing the same concerns as Aontu and the Social Democrats, about how the next government will finance the recovery.
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