A new government has been formed in Ireland in a coalition that involves Fianna Fáil, Fine Gael and the Green Party. Micheal Martin (FF) was elected Taoiseach this weekend, following the endorsement of the Programme for Government (PfG) by the three parties on Friday evening.
While there was some uncertainty about whether the Green Party would vote for the PfG, it was endorsed by a relatively large margin in the end (76% voted for).
Goodbody Stockbrokers say the coalition and the PfG represents a shift to the left in Irish politics and policy, but not a radical one.
At its core is one of the most environmentally progressive policy platforms in Europe. Goodbody say this is likely to be a source of contention during this government’s term.Its first task will be the passing of legislation that will allow for the warehousing of tax liabilities for firms and a government-guaranteed loan scheme this week. A stimulus package to be announced in July will also be crucial, where Goodbody believe further supports will be required for SMEs.
According to Goodbody, "The formation of a stable government was vital to deal with these issues, so this weekend’s developments are welcome, despite the tensions that are surely to part of this arrangement."