The Irish Independent is reporting that Fianna Fáil is set to dig its heels in and demand the suspension of water bills when Enda Kenny contacts the party to seek Micheál Martin's consent for a minority government.
Senior sources in Fianna Fáil say the single biggest obstacle to a deal is the party's stances on water charges.
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Fine Gael sources directly involved in the negotiations told the Irish Independent if Fianna Fáil demands the abolition of charges “then we're heading into another election”.