David McKittrick: Drugs, racketeering and racism still blight a society that longs for peace

When the International Monitoring Commission was suggested, some hoped it would deliver a reassuring report that paramilitary activity in Northern Ireland was on the wane.

Instead, it has depicted a society where illegal organisations remain active, with some areas dominated by groups of men meting out paramilitary "justice" in beatings and other activity.

The Commission's report shows clearly that most of the violence is the work of loyalist paramilitary groups, who readily resort to murder as well as "punishments". Some are deeply involved in drugs, racketeering and even racist attacks.

Minor republican groups are also still active and dangerous. But almost all the political charge centres on the IRA, for various reasons. It remains the most formidable of the illegal armies and, unlike the other smaller groups, it has a vital role to play in the peace process. It has unmistakeable connections with Sinn Fein, whose entry into politics has been central to the process.

The devolved administration in Belfast, now in suspension, will be revived only if Unionists agree to return to government with Sinn Fein.

Leaving any moral questions aside, the pragmatic reality is that Unionists will not do so unless republicans take decisive steps from their violent past. The republicans have had seven years, since the IRA ceasefire of 1997, to make the transformation from their violent origins to conventional politics. Many have been prepared to commend them for the distance they have travelled, and to recognise the peace process has brought huge improvements and saved many lives.

But the decision to blame Sinn Fein for IRA violence, and to impose a financial penalty on the party, illustrates the new atmosphere in London and Dublin. Instead of praising Sinn Fein for its efforts so far, the new focus is on reproving it for not doing enough.

The two governments have long believed that senior members of Sinn Fein are also senior members of the IRA. The report agreed that although Sinn Fein has considerable influence over the IRA it does not control it. But it could offer no definitive answer to the question of the exact relationship between the organisations. This continuing mystery has in some ways inhibited government policy, because of worries that republican hawks might prevail over doves. But the widespread view now is that Sinn Fein must be placed under more pressure if it is to be pushed into becoming a more conventional party which will be regarded by Protestant politicians as a potential coalition partner.

There is also a general belief that Sinn Fein, after a string of electoral successes, is robust enough to cope with such pressure without endangering the peace process.

Although the move has generated a predicably angry response from Sinn Fein, it is unlikely to have any permanently disruptive effect on the political process. Talks are still going on with the major parties but with European elections due in Belfast and Dublin in June no breakthroughs are seen possible before then.

This may have been behind the government decision to postpone intensive talks which had been planned for the next few weeks. Although an eventual breakthrough is still hoped for, none is on the horizon.