Kenny Poised to Lead Irish Government After Rivals Reach Deal

Ireland’s biggest political parties reached an accord after weeks of talks, paving the way for Enda Kenny to lead a minority government.

Kenny’s Fine Gael and Fianna Fail, the biggest opposition party, reached agreement on a range of issues, including the suspension of water charges. In return, Fianna Fail will support three budgets, state broadcaster RTE reported.

The “work has come to an end,” Irish Transport Minister and Fine Gael spokesman Paschal Donohoe told reporters in Dublin on Friday.

The introduction of water levies proved to be Kenny’s biggest challenge after taking power in 2011, and contributed to the routing of his coalition in February’s election, leaving him reliant on support from outside his party. Kenny still needs to win the backing of a number of independent lawmakers to secure a second term.

Parliament will vote to choose a prime minister next week, after Kenny was defeated three times since the election.

Investors have thus far remained relaxed about the political stalemate. Ten-year Irish bonds yielded 0.95 percent on Friday, narrowing the spread between benchmark bonds and German securities of a similar maturity to 70 basis points from 83 basis points just before the election.

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