Fine Gael and Labour are facing into a 3rd day of negotiations on forming a new coalition government.
Delegates have been briefed by a number of financial and economic bodies already and say a very serious picture is being painted.
Deputy Labour leader Joan Burton last night described the economic briefings the party teams have received so far as ‘very sobering’.
Both sides have been given access to a range of figures and information for the first time.
And now comments from the German Chancellor could add to the problems of the as-yet-incomplete coalition.
Angela Merkel last night insisted it is not possible to ‘artificially lower’ the interest rate being charged on the Irish bailout deal.
That is despite high hopes of Enda Kenny for re-negotiating the €85 billion deal.
It is hoped the coalition talks can be wrapped up by the weekend in time for both parties to sign off on it before the new Dáil meets for the first time next Wednesday.
