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Labour-Plaid coalition 'on cards' Labour-Plaid coalition 'on cards'
(40 minutes later)
Plaid Cymru is likely to enter formal talks on forming a coalition Welsh Assembly Government with Labour, BBC Wales has learned.Plaid Cymru is likely to enter formal talks on forming a coalition Welsh Assembly Government with Labour, BBC Wales has learned.
A senior Plaid source said it had been given an offer that would be very difficult to refuse.A senior Plaid source said it had been given an offer that would be very difficult to refuse.
It is understood it has been guaranteed a referendum on full assembly powers.It is understood it has been guaranteed a referendum on full assembly powers.
Plaid AMs will discuss it on Tuesday night, and a senior party member said it was an "odds-on certainty" they will support further discussion.Plaid AMs will discuss it on Tuesday night, and a senior party member said it was an "odds-on certainty" they will support further discussion.
The development is the latest in a series of twists and turns in Cardiff Bay since the 3 May election left Labour the largest party, but five seats short of a majority.The development is the latest in a series of twists and turns in Cardiff Bay since the 3 May election left Labour the largest party, but five seats short of a majority.
Mike German, leader of the Liberal Democrats in the assembly, said he "wouldn't have expected anything different from Labour".Mike German, leader of the Liberal Democrats in the assembly, said he "wouldn't have expected anything different from Labour".
First Minister Rhodri Morgan may have to share power with PlaidFirst Minister Rhodri Morgan may have to share power with Plaid
"They get desperately keen on making sure they hang on by their fingertips to power," he said."They get desperately keen on making sure they hang on by their fingertips to power," he said.
He added that Plaid had to decide whether its aspirations would be better met by a coalition with Labour or by a rainbow alliance with his party and the Conservatives. He said Plaid had to decide whether its aspirations would be better met by a coalition with Labour or by a rainbow alliance with his party and the Conservatives.
"Given the support there is for the three-way coalition that they will probably want to continue that discussion and I suspect... they are going to have to make a choice between one or the other. "Given the support there is for the three-way coalition they will probably want to continue that discussion and I suspect... they are going to have to make a choice between one or the other.
"We will know the answer to that by the end of the week but I think it is a lot to ask of someone to give up the chance to be in charge." "We will know the answer to that by the end of the week ,but I think it is a lot to ask of someone to give up the chance to be in charge."
ShockShock
The latest move comes just over two weeks after Rhodri Morgan was installed as first minister leading a minority administration.The latest move comes just over two weeks after Rhodri Morgan was installed as first minister leading a minority administration.
Plaid's decision to enter serious talks with Mr Morgan will have come as a shock to the Conservatives and Liberal Democrats.Plaid's decision to enter serious talks with Mr Morgan will have come as a shock to the Conservatives and Liberal Democrats.
They believed Plaid favoured forming a so-called "rainbow coalition" administration with them.They believed Plaid favoured forming a so-called "rainbow coalition" administration with them.
This view appeared to have been reinforced on Monday night when Plaid leader Ieuan Wyn Jones effectively rejected overtures for co-operation from Labour.This view appeared to have been reinforced on Monday night when Plaid leader Ieuan Wyn Jones effectively rejected overtures for co-operation from Labour.
Mr Morgan wrote to Plaid and the Liberal Democrats last week.Mr Morgan wrote to Plaid and the Liberal Democrats last week.
He offered an inquiry into the way the Welsh assembly is funded, a temporary halt to changes to hospital services and a group to examine the conditions for a referendum on assembly powers.He offered an inquiry into the way the Welsh assembly is funded, a temporary halt to changes to hospital services and a group to examine the conditions for a referendum on assembly powers.
Mr Jones demanded a better offer from Mr Morgan and it appears he has received one.Mr Jones demanded a better offer from Mr Morgan and it appears he has received one.
Plaid Cymru's national council is due to meet on 7 July in Aberystwyth to discuss whether or not it endorses the proposal for a coalition between itself, Lib Dems and Conservatives.Plaid Cymru's national council is due to meet on 7 July in Aberystwyth to discuss whether or not it endorses the proposal for a coalition between itself, Lib Dems and Conservatives.