The British and Irish governments have put fresh pressure on the DUP and Sinn Féin to make a deal to restore Stormont.
Both governments will hold a series of "significant meetings" in advance of talks later this month between the Taoiseach and the British prime minister, Minister for Foreign Affairs Dermot Ahern has said.
Speaking in Belfast at an event to mark this summer's Irish Special Olympics in the city, Mr Ahern said 2006 represented a chance for restoration of Stormont which should not be lost.
"If we delay further than that then we are into difficult waters," he said. "Who knows what might happen in 2007?"
He said the Independent Monitoring Commission (IMC), the governments' ceasefire watchdog, had an important role to play, especially in regard to its next two reports expected within the next few weeks and in April.
"It's very important that they [ the IMC] can confirm that particularly the Provisional IRA have gone off the stage so that real politics can now kick in," he said.
What was needed was for the two governments to convince both sides in Northern Ireland to come together and to start real negotiations and real talks.
It was up to the Northern political parties to decide if they wanted to do business with each other to run their own affairs.
Mr Ahern stood by remarks made by Northern Secretary Peter Hain concerning the cancelling of next year's assembly elections if no progress is made.
"He is in effect saying to people, 'Decisions have to be made one way or another'.
"We firmly believe people have to make an effort, given the new landscape which hopefully will be confirmed by the IMC, that people will enter into meaningful negotiations and not in such a way that people are shadow boxing."
Asked bluntly if there were differences between himself and Mr Hain on this issue, he replied: "No, there aren't."
Referring to threats to stop assembly salaries were Stormont not to be reconstituted, Mr Ahern said he could imagine what the public response in the Republic would be if the Dáil did not meet for a year and he continued to draw his salary.
However, criticism of Mr Hain's threat to end assembly salaries continued yesterday.
Mr Ahern also welcomed initiatives from the British government aimed at the economic regeneration of loyalist communities.
The Ulster Unionist Assembly group accused British ministers of shifting blame to others for its own failures.
"Had the government acted . . . against those who were demonstrably not wedded to exclusively democratic and peaceful means, we would not be in the position we currently find ourselves in," they said.
"We continue to make strong representations to government . . . but it must be acknowledged that progress can only take place within the context of acceptable democratic standards."
Sir Reg Empey, the party leader, pressed the Conservative leader in the House of Lords, Lord Strathclyde, to help defeat the Bill aimed at allowing paramilitary fugitives or on-the-runs to return to Northern Ireland without facing court proceedings.
Sinn Féin's chief negotiator meanwhile accused the British and Irish governments of not tackling the DUP's "stalling" tactics.
Martin McGuinness said: "The DUP cannot be allowed to stall the process indefinitely. All their excuses have been removed.
"The two governments have a responsibility to drive the process forward in the time ahead.
"People across the island are impatient for progress and want to see the two governments fulfilling their responsibilities by seizing the political initiative and restoring the all-Ireland power-sharing institutions."