Political Stalemate or Swift Action? Ireland’s Election at a Crossroads

On Friday, the Irish electorate will take to the polling stations to vote for the new Irish government. However, the most recent opinion polls will have businesses and taxpayers up and down Ireland holding their breath. It now looks likely that political gridlock could be the result once again. It took four long months after the last count centres closed their doors in 2020 for a government to be finally formed and there is no certainty that things will be any quicker after this campaign. The recent polls are suggesting a significant drop in support for Fine Gael and the potential for all three of the larger parties to obtain a similar level of seats. This could lead to long negotiations around coalition formations and the segregation of roles within cabinet. 

At a time when we need strong, clear leadership and not a sustained vacuum of power it is important government formation negotiations get concluded quickly. The recent appointments by President elect Trump have raised significant concerns from many corners reinforcing the need to keep a close eye here in Ireland on ensuring that we continue to benefit from US FDI. When his term starts in 2025 it is clear corporation tax policy and encouraging large multinationals back to the US will be a priority for his team. Over 80% of our corporation tax receipts and over 50% of our payroll tax receipts are generated by these multinationals and it is important we have a government in place who will protect the exchequer.