Employers say they are hopeful that an agreement on Government plans to cut €2 billion in spending can be achieved.
IBEC director general Turlough O'Sullivan said setting out the Government plans was essential for Ireland's rating and future credibility. Talks started this morning and are likely to continue well into the evening.
Unions and employers both say they are working hard to put together proposals which will be acceptable to both sides.
Much of the focus today was on pensions and a scheme to protect private sector pensions. Such a scheme could expose the State to huge risk, and unions have been putting forward proposals to deal with such concerns.
Unions remain committed to getting a good deal for their members, said SIPTU general president Jack O'Connor.
All sides know that if agreement is not reached by tomorrow's cabinet meeting, Taoiseach Brian Cowen will be putting forward proposals of his own to achieve the savings.
