Ireland: economic crisis, early election?

If this is your first foray into Irish politics, you might want to start by reading this morning’s post.

Ireland’s most successful politician in half a century, Bertie Ahern, announced his resignation as Fianna Fail leader and Taoiseach on 2 April 2008, and soon after his Minister of Finance, Brian Cowen, was elected as the new Taoiseach.

Early polls put Cowen’s government in a strong position, with Fianna Fail polling over 40%, well ahead of Fine Gael in the mid-20s. His government’s first challenge came in June, when the Lisbon Treaty went to a national referendum.

The Lisbon Treaty was written as a replacement for the failed European Constitution, which had been defeated after the Netherlands and France voted it down in referenda. The other 26 states managed to avoid taking the Treaty to a referendum, but Ireland’s constitution needed to be amended, which meant a referendum.

The Treaty had the support of Fianna Fail, Fine Gael, the Labour Party, and most of the Green Party, as well as the support of the trade union movement and the Church, who explicitly came out to combat perceptions that the Treaty would result in abortion being legalised in Ireland.

In spite of this widespread institutional support, the treaty was defeated, with 53.4% voting “no”. This threw the EU’s plans into chaos, and calls for Ireland to vote again began soon after.

Ireland was hit hard by the early onset of the global financial crisis, with the country officially entering recession in September 2008, and Cowen announced that the December budget would be brought forward to October. Around this period, Fianna Fail’s support fell dramatically, running neck-and-neck with Fine Gael by October.

The October 14 budget was brutal, cutting back many government programs, including pensioner’s medical benefits and free education, with university fees re-introduced. Polls in late October had Fine Gael clearly ahead of Fianna Fail, who had fallen to 26%.

The crisis has continued to worsen, and Ireland is now seen as one of the worst-hit countries in the western world. A month ago, the government’s performance hit a new low, with Fianna Fail dropping to third place in an Irish Times poll, on 22%, behind Labour on 24% (double their 2007 vote) and Fine Gael on 32%. Sinn Fein had also gone from 2% in 2007 to 9%, while the Green Party remained stuck on 4%. The poll also put the government’s approval ratings at a shocking 14%.

Polls since that time have continued to put Fianna Fail neck-and-neck with Labour, and also demonstrate that the Greens are in danger of facing a wipe-out if they continue to support Cowen’s government.

Speculation of an early election has continued to grow, with a recent poll saying that a majority of the Irish people want an election now. Speculation has also begun that, in a desperate attempt to prevent a collapse, the Green Party could switch and support a new coalition government not including Fianna Fail, which could then call an early election.

The economic crisis seems to have changed the minds of the Irish people in regards to the European Union, with polls in January showing a clear majority supporting the passage of the Lisbon Treaty. A new referendum is scheduled for October 2009, following local and European Parliament elections in early June, which could be an opportunity for voters to unleash their anger on the governing Fianna Fail and Green Party.

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