<p>The conservative Fine Gael party, which captured the most seats in the Feb 25 election, forged an agreement with the leftist Labor party on a government, setting parliament up to name Fine Gael leader Enda Kenny as prime minister when it convenes Wednesday.<br /><br />The two parties came to terms after agreeing to an ambitious plan to address the nation's deficit. The two sides want to negotiate the interest on $119 billion loan from the European Union in November.<br /><br />Fine Gael captured 76 of the 166 seats in parliament, while Labour won 37 seats in the election nine days ago. The dominant and long-ruling Fianna Fail suffered a major defeat, seeing its vote reduced more than half from the May 2007 election.<br /><br />The agreement marks the first time since 1997 that Fine Gael and Labour have controlled the government in Ireland.</p>
<p>The conservative Fine Gael party, which captured the most seats in the Feb 25 election, forged an agreement with the leftist Labor party on a government, setting parliament up to name Fine Gael leader Enda Kenny as prime minister when it convenes Wednesday.<br /><br />The two parties came to terms after agreeing to an ambitious plan to address the nation's deficit. The two sides want to negotiate the interest on $119 billion loan from the European Union in November.<br /><br />Fine Gael captured 76 of the 166 seats in parliament, while Labour won 37 seats in the election nine days ago. The dominant and long-ruling Fianna Fail suffered a major defeat, seeing its vote reduced more than half from the May 2007 election.<br /><br />The agreement marks the first time since 1997 that Fine Gael and Labour have controlled the government in Ireland.</p>