Irish Government view: The Government could be prepared to concede significant changes to the operation of the Northern Ireland Assembly and Executive to broker a deal with the Democratic Unionist Party after its election victory, the Taoiseach, Mr Ahern, has indicated.

"We have to try to move to an inclusive agreement that deals with the issues for the future," said Mr Ahern, who offered to hold speedy talks with all of the Northern Ireland parties "separately, or together". The DUP, he said, had sought "stable, effective, and accountable" institutions. "If you add 'inclusive' to that, then I don't have a difficulty negotiating on any of these issues.

"I accept fully that the review [of the agreement] is going to mean change. I don't want fundamental changes. I want to build on what we have," he told RTÉ's This Week programme.

The Government may now be prepared to discuss amendments to the Assembly's designation rules, where the 108 members must declare themselves nationalists, unionists, or others.

Such a change could mean that the existing requirement for 40 per cent support from both the nationalist and unionist community for individual measures could be dropped in place of a 70 per cent vote by the Assembly as a whole.

In addition, members of the Executive could be required to be accountable to the Assembly itself, rather than having their powers devolved to them individually under legislation.

Government sources also accept that the lack of collective Cabinet responsibility among ministers in the outgoing Executive created persistent difficulties.

The latest problems in the peace process were discussed yesterday by the Minister for Foreign Affairs, Mr Cowen, and the Northern Ireland Secretary of State, Mr Paul Murphy.

The Government's difficulties in balancing its duties with the EU presidency and Northern Ireland talks will be highlighted this week. The Minister for Foreign Affairs leaves today for an Organisation of Security Co-Operation in Europe meeting in Maastricht in the Netherlands, followed by meetings in Naples on Tuesday and Wednesday with North African leaders.

"It is going to be a struggle all right. There is no doubt about that," a Government source said last night. The Government will chair 2,500 EU meetings over the next six months.

On RTÉ yesterday Mr Ahern said the October effort to orchestrate IRA decommissioning had not offered the Ulster Unionist Party leader, Mr Trimble, "enough to sign up for it". He regretted the failure of the talks which could have significantly boosted the UUP's fortunes in last week's election. "It did not give David Trimble the bounce into the election, which would have made the difference in my view.

"He did very well in the election, only three seats behind, but that would have been a bounce that would have clearly put him in front and that did not happen."

Ruling out a renegotiation of the Belfast Agreement, which would require a constitutional referendum in the Republic, Mr Ahern said there is room to improve the operation of the Northern Ireland political institutions. "I have made my position clear about renegotiation, a position shared by the British government," said Mr Ahern, who will discuss Northern Ireland again with the Prime Minister, Mr Blair, during a mid-December meeting.

The two governments will write later this week to all of the parties seeking their comprehensive observations "and to give their opinions about how we go forward from here".

Changes to the operation of the institutions must be acceptable to the nationalist community. "We are not going back to majoritarian rule. That would not be acceptable to nationalists.

"There is no possibility that nationalists at this stage of their development will agree to anything other than an inclusive agreement. There is no point negotiating about things that will not work," he said.

The Minister for Foreign Affairs, Mr Cowen, said the two governments are determined to implement their part of the Belfast Agreement even if the parties in the North fail to form an Executive. Speaking in Naples at the weekend where he attended a meeting of EU foreign ministers, Mr Cowen said it was important to remember the agreement had the status of an international treaty.

"The Good Friday Agreement covers all sets of relationships. All governments and presumably the parties want to see its institutions working to the optimum. The question of devolution being available is a matter for agreement between the parties within Northern Ireland under strand one of the agreement. Strand two and strand three of the agreement continue to operate."