Indian-origin Irish PM Leo Varadkar's party pushed to 3rd place in general election

Ireland's Indian-origin Prime Minister Leo Varadkar has suffered a huge setback in the general election as his liberal-conservative Fine Gael party took a battering in the face of an unprecedented surge in the fortunes of the nationalist party Sinn Fein.

As the poll results poured in overnight on Sunday, Varadkar's party was pushed down to third place with Sinn Fein in the lead, followed by conservative Fianna Fail in second place.

In what has been described as one of the most extraordinary election results for the country, the process of government formation is likely to be very long-drawn one with Varadkar having ruled out an alliance with Sinn Fein historically associated with the Irish Republican Army (IRA) and dedicated to the reunification of Ireland.

The final results of the weekend's election are still being counted but with all first preferences counted, Sinn Fein has 24.5 per cent compared to 22.2 per cent for Fianna Fail and 20.9 per cent for Fine Gael.

"Nobody can be forced into some sort of forced marriage or forced coalition," said 41-year-old Varadkar, who took over as the Irish Taoiseach or Prime Minister in 2017.

"In order to form a government together, you have to have roughly the same views around the courts and the criminal justice system; around how the economy and society should be run and also how democracy should function. That is what makes my party Fine Gael not compatible with Sinn Fein," he said.

"Quick thinking and dynamic, he surfed a wave of popularity, but the electorate's loyalty has withered," The Irish Times commented on Ireland's first openly gay prime minister, the son of an Indian father and Irish mother.

Varadkar has indicated a coalition with Fianna Fail could be possible, saying "we are willing to talk to other parties about the possibility of forming a new government, one that would lead the country forward for the next five years".

Michael Martin, the leader of Fianna Fail, has meanwhile left the door more widely open, saying he is a "democrat" and would "listen to the people."