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Friday, Apr 04, 2025

Irish Centre-Right Parties Close to Reaching Coalition Agreement for Upcoming Government Term

Fianna Fail and Fine Gael, together with independents, are striving to complete a five-year coalition agreement as Ireland faces uncertain international economic challenges.
Ireland’s two leading center-right political parties, Fianna Fail and Fine Gael, are close to finalizing a coalition deal that will enable them to govern for the next five years.

This agreement follows both parties falling one seat short of the 87 needed to form a government after the November 29 election.

Negotiations have been ongoing, with the parties trying to gain the support of independent lawmakers to bridge the gap.

The potential coalition, likely to include several independent lawmakers, is considered vital for Ireland’s political stability.

However, by Tuesday, discussions were not yet fully concluded.

Senior Fine Gael lawmaker Peter Burke confirmed that negotiations are still in progress but stated that a government program should be released within the next 24 hours.

Barry Heneghan, one of the independent lawmakers involved in the talks, spoke to Reuters about the final steps of the process.

He mentioned that the independents would convene on Wednesday to decide whether to support the policy draft developed by the major parties.

"We need to meet as a regional group to review everything thoroughly and determine if we can endorse it," he said.

The urgency of finalizing the agreement is intensified by global economic concerns.

The incoming U.S. President, Donald Trump, is anticipated to modify corporate tax laws and impose international trade tariffs, actions that could significantly impact Ireland’s economy, which relies heavily on foreign multinational firms.

Both Fianna Fail and Fine Gael are eager to solidify their new government before Trump’s inauguration next week.

This coalition deal comes after a prolonged period of political uncertainty in Ireland, as the two parties have been unable to finalize an agreement since the November election.

Ireland’s economy, supported by multinational firms benefiting from its low corporate taxes, might face challenges if Trump proceeds with reducing U.S. corporate taxes and implementing protectionist trade measures.

As the final steps of the coalition agreement unfold, both Fianna Fail and Fine Gael aim to ensure their political future while adapting to a rapidly changing global economic landscape.
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