DUBLIN, Nov. 2 (Xinhua) -- Ireland and Britain have agreed that the gap in talks between Sinn Fein and the Democratic Unionist Party (DUP) is "narrow", according to a government statement here on Thursday.
Irish and British prime ministers Leo Varadkar and Theresa May, who spoke by phone in relation to the political situation in Northern Ireland, expressed the view that "it is still possible to form an executive which would be in the interests of all the people of Northern Ireland", the Irish government statement said.
The phone conversation between Varadkar and May came after the recent talks between Sinn Fein and the DUP about forming a government collapsed without agreement on Wednesday.
The Irish prime minister made the point that "there could be no return to direct rule as it existed prior to the Good Friday Agreement and that the various provisions of the agreement would have to be honored", it said.
The British prime minister made clear that "she did not want to see a return to direct rule and that moves to implement a budget for Northern Ireland were not the first step on the road to direct rule", it added.
Both leaders agreed that there is still time to reach an agreement, according to the statement.
British Secretary of State for Northern Ireland James Brokenshire said he would begin making preparations to impose a budget by the end of the month.
But he said the talks could continue and the budget process could be handed back if an executive was formed.
Currently, the two parties in Northern Ireland have been bogged down over a number of issues, including same sex marriage.
The main issue blocking a deal is over the Irish language, with Sinn Fein seeking a free-standing Irish language act and the DUP insisting language legislation must also embrace Ulster Scots and other cultural matters.
