Irish PM says open to talks with main rival

(Adds quotes, Senior Fine Gael minister cool on minority government)

By William James

DUBLIN, March 2 (Reuters) - Irish Prime Minister Enda Kenny said on Wednesday for the first time he would be open to talking to his party's arch rival Fianna Fail about the possible formation of a new government after his previous coalition was voted out of office last week.

Kenny's centre-right Fine Gael party is set to fall about 30 seats short of the 80 needed to form a majority in parliament with counting almost complete, leaving its historic rival as the only obvious partner to form a stable government.

He told reporters that all the available options of forming a government were difficult, but that he was committed to try.

"As the leader of the largest party, and as the Taoiseach (prime minister) it's my responsibility to work to see that that process is put in place, and that includes talking to the Fianna Fail party," he said.

Kenny described the election, in which voters complained of a recovery that has not trickled down to poor and rural areas, as "bruising" and said none of the deputies in parliament wanted a re-run.

With (Other OTC: WWTH - news) both parties completely ruling out a coalition with the third-largest party, left wing nationalists Sinn Fein, analysts say that leaves two main options: a formal coalition between Fine Gael and Fianna Fail or a minority Fine Gael government with support from Fianna Fail on a vote-by-vote basis.

Senior (Other OTC: SNIRF - news) members of both Fine Gael and Fianna Fail have voiced opposition to both routes.

Fianna Fail lawmaker Dara Calleary told state broadcaster RTE on Wednesday that a formal coalition was a "dreadful prospect", saying the last government had presided over an unbalanced recovery.

Fine Gael Minister Simon Coveney, asked about the possibility of a minority government, told RTE the country did not need a government "that is weak, that is not stable, that is likely to fall at any time."

Senior Fine Gael members are due to meet on Thursday, a week before parliament resumes, to formulate a set of principles to guide its participation in a future government.

Fianna Fail has said it will put leader Micheal Martin forward as an alternative prime minister on March 10, but it is unlikely that either Martin or Kenny would garner enough support to win the vote without cooperating.

Martin raised the prospect of a more protracted delay on Monday by calling for a cross-party deal on reforming parliament before any coalition talks. Several commentators have suggested a new government before the end of March is unlikely. (Additional reporting by Conor Humphries; Editing by Hugh Lawson (Other OTC: LWSOF - news) )