Ireland’s Main Parties Form New Coalition Government

Ireland’s two largest parties agreed Sunday to form a new coalition government, after the Fine Gael party trounced the ruling party in parliamentary elections last week.

The center-right Fine Gael has been in talks since Monday with the second-place center-left Labor party, after voters ousted the ruling Fianna Fail over its handling of Ireland’s economic meltdown.

Fine Gael chief and prime minister-in-waiting Enda Kenny told RTE state radio Sunday that some of the final details are being worked out for presentation to both parties.

Irish voters were angry that the Fianna Fail government sought a bailout from the European Union and International Monetary Fund for the battered Irish economy. Under the terms of the loan, the government must slash spending and civil service salaries.

The Irish government fell deep into debt after it stepped in to rescue banks hit hard by the collapse of real estate prices in 2008