The confidence and supply agreement between Fine Gael and Fianna Fáil has been extended until 2020.
The agreement was extended following a meeting between the leaders of the two parties last night.
The extension will see the Government remaining in place for one more budget.
The next general election is then expected be held in early 2020.
BREAKING: The Confidence and Supply Agreement has been extended for one budget and an election will be held in early 2020 after deal reached between Fine Gael and Fianna Fáil
— Sean Defoe (@SeanDefoe) December 12, 2018
The decision follows weeks of talks and a comprehensive review of the effects of the agreement up to now.
The review highlighted serious concerns held by Fianna Fáil regarding the Government's performance on health and housing; however both parties have repeatedly pledged not to bring down the Government while Brexit remains in the balance.
UK Prime Minister Theresa May is facing a vote of no confidence in the House of Commons this evening after her controversial decision to cancel a Parliamentary vote on the Brexit Withdrawal Agreement.
Brexit chaos
Speaking in the Dáil this afternoon, Fianna Fáil leader Micheál Martin said Ireland must retain a united Government while the chaos in Westminster continues.
"Whether or not Prime Minister May survives today the core blockage to any deal remains," he said.
"There is currently an overwhelming majority of MPs standing against the Withdrawal Agreement but there is no route to a majority for any alternative course of action.
"The only thing which is clear is that no one has the faintest idea what the course of Brexit will be in the coming weeks and months, and potentially for much longer than that."
"We simply do not believe that the national interest could in any way be served by taking up to four months during next year to schedule and hold an election campaign and then form a government." @MichealMartinTD
— Fianna Fáil (@fiannafailparty) December 12, 2018
"Major threat"
He said Ireland is now "facing a major threat and great uncertainty" and insisted that the situation " This poses a direct challenge to everyone in this House as to how we react."
"Business as usual is not acceptable," he said.
"Can we show our ability to put the national interest ahead of party interests?"
"National interest"
The Fianna Fáil leader said his party is "determined that the political chaos we see in London will not be allowed to spread to Ireland."
"We simply do not believe that the national interest could in any way be served by taking up to four months during next year to schedule and hold an election campaign and then form a government," he said.
"This is why Fianna Fáil will extend a guarantee that government will be able to operate throughout 2019.
"This will allow the introduction of any emergency legislation and budgets, as well as the full end of year Budget and associated legislation.
"This will in turn allow the holding of an election early in the following year."
With business and communities already fearful about the impact of #Brexit and with Ireland manifestly not ready for many of the potential outcomes, how could it possibly be in the national interest to have extended political uncertainty next year? @MichealMartinTD
— Fianna Fáil (@fiannafailparty) December 12, 2018
"Incredibly responsible"
On the Hard Shoulder this evening, the Social Protection Minister Regina Doherty said the Fianna Fáil decision was "incredibly responsible" in the face of the Brexit threat.
"This is about providing the stability for the Irish people who know the challenges that face the EU member states, the UK and as a result of those decisions, Ireland and Northern Ireland over the next couple months," she said.
"We have to manage that and I think they have been incredibly responsible."
Challenges
For his part, the Tánaiste Simon Coveney said the extension was good news for the country.
"It will allow the Government to proceed with the certainty that we are not going to get pulled down or that we don't have look over our shoulders week-to-week or month-to-month wondering if there is going to be an election unexpectedly," he said.
"I think it is really important that Fianna Fáil facilitated us to plan in the medium term given the challenges that the country clearly faces now linked to Brexit and also in other areas."
Simon Coveney effectively confirms Fine Gael gave up absolutely nothing to get an extra year of support from FF pic.twitter.com/zQtfKgy8fe
— Sean Defoe (@SeanDefoe) December 12, 2018
'No deal' preparations
In his speech Deputy Martin also took aim at the Government's preparations for a 'no deal' Brexit.
"Yesterday, the Government announced that it will “ramp-up” preparations for a no deal scenario," he said.
"This is the third such time this year that the government has announced such a ramping-up – yet the available evidence is that Ireland is nowhere near ready for a ‘no deal’ scenario."
He said budget 2019 "assumes an orderly Brexit with a lengthy withdrawal period and no sudden shifts in policy" and said preparations for a no deal scenario are "really only starting at the very last minute."
"We can’t afford a repeat of what we have seen from the Government in so many other policy areas – where spin about activity levels is used to cover up the lack of action on the ground," he said.
"The facts published by government show that only a minority of impacted companies have preparations in place.
"Few have currency hedging strategies. Few have begun procedures for essential freight travel registrations."
He said minor grant schemes are helping a "minority of companies" but warned that "significant funding for cash flow disruption, tackling loss of competitiveness and diversification has not been distributed."
