Negotiations to restore devolution scheduled for September. Devolution suspended since October 2002, but recent signs of flexibility suggest Sinn Fein-Democratic Unionist Party (DUP) agreement possible. Sinn Fein president Gerry Adams suggested republicans should remove IRA as excuse for unionist stonewalling. DUP said Sinn Fein members with terrorist convictions could not hold key security and justice portfolios. Meanwhile, youth riots rocked Londonderry 10 August. Petrol bomb exploded in Protestant housing estate, causing no injuries.

Some violence in Belfast 12 July during Orange order marching season; Democratic Unionist Party (DUP) appeared ready to guarantee stable power- sharing arrangement if deal on decommissioning can be struck at intensive September talks with Irish, British governments and Sinn Fein.

Elections to European Parliament 10-13 June saw Protestant Democratic Unionist Party (DUP), opposed to power-sharing, top poll with 32% vote share, well ahead of more moderate Ulster Unionist Party. Sinn Féin (SF) replaced Social Democratic Labour Party as main party of nationalist community. Possible push for peace between SF and DUP, though SF called DUP conditions “unacceptable” 30 June.

Feud between loyalist groups reportedly ended 30 May. Loyalist Volunteer Force (LVF) leading member was murdered 18 May, days after bullets sprayed Ulster Volunteer Force (UVF) home in east Belfast. PMs Tony Blair and Bertie Ahern said governments had established basis for road map to restore devolved power by October. Democratic Unionist party (DUP) leader Ian Paisley vowed not to participate in power-sharing government with Sinn Fein without complete IRA disarmament. Sinn Fein’s national chairman Mitchell McLaughlin called for IRA to decommission in run-up to 10 June European elections.

Financial sanctions to be imposed on Sinn Fein and Progressive Unionist Party after Independent Monitoring Commission (IMC) linked them to paramilitary activity by IRA and Ulster Volunteer Force. Political talks involving all Northern Ireland parties and British and Irish prime ministers postponed. Sinn Fein's Gerry Adams met Tony Blair and rejected IMC conclusions and called on British government to re-focus on peace process.

Ulster Unionist (UUP) leader David Trimble withdrew from Good Friday review 2 March over government’s refusal to exclude Sinn Féin. Ian Paisley’s Democratic Unionist party (DUP) remained but refuses to talk directly to Sinn Féin. Prime ministers of Britain and Ireland met to discuss way ahead 23 March. Reported no progress after talks with province’s divided leaders. Leadership challenge to Trimble 27 March failed.

Good Friday Agreement Review started 3 February. Progress in doubt after police blamed Provisional IRA for attempted kidnapping of alleged dissident republican in Belfast 20 February. David Trimble, leader of moderate UUP, threatened to pull out of review unless UK government takes action. Paisley’s DUP ‘Devolution Now’ document largely rejected as alternative to existing Agreement but praised for invigorating discussions. DUP suggested corporate assembly involving all 108 assembly members in running government before outstanding questions of IRA arms and paramilitary activity resolved. Sinn Fein responded with own proposals to revive Stormont with 10 government departments.

DUP leader Ian Paisley to retire from European Parliament in June, but will remain Assembly Member and head of DUP. Review of Good Friday Agreement to begin 3 February. Review talks team boosted by defection of former Ulster Unionists. DUP had first face to face meeting with Irish government 29 January marking ‘new phase’ in relations.

No progress in political stalemate as DUP maintained refusal to work with Sinn Fein. Three Assembly members defected from David Trimble’s moderate UUP to ally with Ian Paisley's DUP. IRA and loyalist ceasefires held. Review of the Good Friday Agreement due to start in January. Blair and Ahern met Sinn Fein 17 December to push for further commitments on peace process.

Good Friday peace agreement and continued functioning of Northern Ireland Assembly thrown into doubt by 26 November election result. Hardline unionist and nationalist parties gained ground: 30 of 108 seats went to anti-agreement Democratic Unionist Party (DUP), 27 for Trimble’s Ulster Unionists; Sinn Fein won 24 seats, six more than moderate Social Democratic and Labour Party. No new executive government can be formed without agreement of both DUP and Sinn Fein, so no resolution likely while DUP continues to refuse to work with Sinn Fein. Assembly still suspended; DUP to hold talks with Blair 1 December but unlikely power-sharing government will resume in near future.