Northern Ireland Secretary James Brokenshire
Following the snap election in early March the main political parties could not reach an agreement.
The two biggest parties, the DUP and Sinn Féin, blamed each other while Sinn Féin's Michelle O'Neill said her party walked away from negotiations because the DUP did not have "the right attitude".
Talks collapsed on Sunday night after Sinn Fein announced it would not be nominating a deputy first minister in the Assembly on Monday.
Without both first and deputy first ministers it is impossible to form an executive.
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Making the announcement, Northern Ireland Secretary James Brokenshire, said there was “no appetite” for another snap election.
Mr Brokenshire has said a "short window of opportunity" exists to restore a power sharing executive in the region.
Now, the parties will have more time to try to come to an agreement.
No budget or programme for government has been set to govern public spending during the financial year which begins next month.
Mr Brokenshire was clear this could cause problems as Ireland reaches the beginning of a new financial year with no plan nailed in place.
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