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By Arthur Conrad
The leaders of Ireland's main opposition party Fine Gael and Labor parties yesterday agreed to form a coalition government. Fine Gael leader Enda Kenny, is set to become the new prime minister of the country when the Irish parliament meets Wednesday. Kenny and Labor leader Eamon Gilmore managed to reach agreement on outstanding contentious issues, including the decision to come up with a time-table to introduce more austerity budgets over the next four years.
The parties were holding talks since Monday following elections which resulted in doom for the ruling party. The elections were dominated by debate on Ireland's sovereign- and bank-bond debt and jobs crises. Both parties promised to renegotiate the terms of the bailout deal struck last November by the former government with the EU and IMF.
The center-right Fine Gael won most seats in the Parliament but it fail to secure an overall majority. Center-left Labor party won the second largest number of seats. "We are constrained by the EU and the IMF," Kenny told journalists Sunday. "Given the constraints of the deal that has been done, Fine Gael and Labor are putting forward the document we believe will put our economy in the right direction."
Kenny’s party proposed cutting the deficit of the country to 3% of GDP by the end of 2014, while Labor is willing to extend the deadline to 2016. Labor has also pledged to introduce no further cuts in child-welfare payments. Experts maintained that the new coalition agreement looks pragmatic and it would definitely take Ireland on the path of development in the months to come.
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