Negotiated proposals to restore the power-sharing institutions to Northern Ireland by March failed to reach finality today.
The deal foundered on the modalities for IRA weapons decommissioning.
The Sinn Féin leader, Gerry Adams, said the only remaining obstacle to a deal was what he called the DUP's unrealisable demand for the humiliation of Irish republicans.
Mr Adams claimed the proposals as outlined by the British and Irish governments showed great progress had been made, and that as far as Sinn Féin was concerned, everything was agreed.
He added that the failure to agree on a photographic record of IRA decommissioning should not be allowed to hold up agreement.
The DUP's Geoffrey Donaldson claimed the IRA had refused to discuss inventories for decommissioning, the role of independent witnesses, and the question of photographs.
This afternoon the Taoiseach, Bertie Ahern, and British Prime Minister Tony Blair told a joint news conference in Belfast that the proposals put forward by the two governments represented a dramatic surge towards final closure of the conflict.
Both leaders stressed their determination to press on with efforts to reach an agreement with Mr Blair saying he believed it was inevitable.
The British PM said he believed the peace plan sought by the two governments' proposals would have been momentous, securing and sustaining an unprecedented opportunity for peace.
Mr Ahern said he believed an agreement was still possible before Christmas.
In a separate news conference the DUP leader, Ian Paisley, also spoke of what he called the great progress that had been made.
However, he said the crux was that Sinn Féin/IRA were not prepared to discuss weapons decommissioning or a photographic record of it.
