Ireland's two major centre-right parties finalised a coalition deal with independent lawmakers on Wednesday that will return Micheal Martin as prime minister and continue the previous government's high spending economic policy.

FILE PHOTO: Ireland's Tanaiste (Deputy Prime Minister) and leader of Fianna Fail, Micheal Martin smiles as he arrives at the Cork South Central count centre, during Ireland's general election, in Cork, Ireland, November 30, 2024. REUTERS/Damien Eagers/File Photo

An agreement has been reached which will pave the way for a new government to be formed in the Republic of Ireland. This follows the Irish general election in November, in which Fianna Fáil emerged as largest party.

Ireland's two dominant centre-right political parties are close to finalising a coalition deal with independent lawmakers to return to power for another five-year term, two lawmakers said on Tuesday.