FIANNA FÁIL AND Fine Gael have parked government formation talks for Christmas, planning to meet again in the New Year after making “progress” in meetings today.

The two parties, which secured 48 and 38 seats in November’s election respectively, are angling to get back into Government together with the support of Independents or a smaller party.

After a series of talks over the weeks since the election, the parties have confirmed that they made progress on various issues in talks today and have concluded for the Christmas break.

They plan to meet again in January to resume discussing a potential Programme for Government.

They also intend to continue engaging with the Social Democrats and Independents as they look to gather enough numbers for a majority in the Dáil.

The most likely outcome currently appears to be that Fianna Fáil and Fine Gael will go back into Government together with the support of a group of Independents after both parties backed Independent TD Verona Murphy as their pick for Ceann Comhairle.

Murphy, a member of a newly-formed grouping of Independents called the Regional Group, was elected as Ceann Comhairle on Wednesday during the 34 Dáil’s first sitting.

The Labour Party had also engaged in discussions but has ruled out entering an agreement with Fianna Fáil and Fine Gael, citing a “policy gulf”.