
The post-2008 Irish economic downturn in the
Republic of Ireland
Ireland ( ga, Éire ), also known as the Republic of Ireland (), is a country in north-western Europe consisting of 26 of the 32 Counties of Ireland, counties of the island of Ireland. The capital and largest city is Dublin, on the eastern ...
, coincided with a
series of banking scandals, followed the 1990s and 2000s
Celtic Tiger
The "Celtic Tiger" ( ga, An Tíogar Ceilteach) is a term referring to the economy of Ireland from the mid-1990s to the late 2000s, a period of rapid real economic growth fuelled by foreign direct investment. The boom was dampened by a subseque ...
period of rapid real economic growth fuelled by foreign direct investment, a subsequent
property bubble
A real-estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real-estate markets, and typically follow a land boom. A land boom is the rapid increas ...
which rendered the real economy uncompetitive, and an expansion in bank lending in the early 2000s. An initial slowdown in economic growth amid the international
financial crisis of 2007–2008
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of ...
greatly intensified in late 2008 and the country fell into
recession
In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
for the first time since the 1980s. Emigration, as did unemployment (particularly in the construction sector), escalated to levels not seen since that decade.
The
Irish Stock Exchange
Euronext Dublin (formerly The Irish Stock Exchange, ISE; ga, Stocmhalartán na hÉireann) is Ireland's main stock exchange, and has been in existence since 1793.
The Euronext Dublin lists debt and fund securities and is used as a European ga ...
(ISEQ) general index, which reached a peak of 10,000 points briefly in April 2007, fell to 1,987 points—a 14-year low—on 24 February 2009 (the last time it was under 2,000 being mid-1995). In September 2008, the
Irish government
The Government of Ireland ( ga, Rialtas na hÉireann) is the cabinet that exercises executive authority in Ireland.
The Constitution of Ireland vests executive authority in a government which is headed by the , the head of government. The gover ...
—a
Fianna Fáil
Fianna Fáil (, ; meaning 'Soldiers of Destiny' or 'Warriors of Fál'), officially Fianna Fáil – The Republican Party ( ga, audio=ga-Fianna Fáil.ogg, Fianna Fáil – An Páirtí Poblachtánach), is a conservative and Christian ...
–
Green
Green is the color between cyan and yellow on the visible spectrum. It is evoked by light which has a dominant wavelength of roughly 495570 Nanometre, nm. In subtractive color systems, used in painting and color printing, it is created by ...
coalition—officially acknowledged the country's descent into recession; a massive jump in unemployment occurred in the following months. Ireland was the first state in the
eurozone
The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro ( €) as their primary currency and sole legal tender, and have thus fully implemented EMU polic ...
to enter recession, as declared by the
Central Statistics Office (CSO). By January 2009, the number of people living on unemployment benefits had risen to 326,000—the highest monthly level since records began in 1967—and the unemployment rate rose from 6.5% in July 2008 to 14.8% in July 2012. The slumping economy drew 100,000 demonstrators onto the streets of
Dublin
Dublin (; , or ) is the capital and largest city of Ireland. On a bay at the mouth of the River Liffey, it is in the province of Leinster, bordered on the south by the Dublin Mountains, a part of the Wicklow Mountains range. At the 2016 ...
on 21 February 2009, amid further talk of protests and
industrial action
Industrial action (British English) or job action (American English) is a temporary show of dissatisfaction by employees—especially a strike or slowdown or working to rule—to protest against bad working conditions or low pay and to increa ...
.
With the banks "guaranteed", and the
National Asset Management Agency
The National Asset Management Agency (NAMA; ga, Gníomhaireacht Náisiúnta um Bhainistíocht Sócmhainní) is a body created by the government of Ireland in late 2009 in response to the Irish financial crisis and the deflation of the Irish ...
(NAMA) established on the evening of 21 November 2010, then Taoiseach
Brian Cowen
Brian Bernard Cowen (born 10 January 1960) is an Irish former politician who served as Taoiseach and Leader of Fianna Fáil from 2008 to 2011.
Cowen was elected to Dáil Éireann in 1984, for the constituency of Laois–Offaly and served in a ...
confirmed on live television that the
EU/
ECB/
IMF
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster gl ...
troika would be involving itself in Ireland's financial affairs. Support for the Fianna Fáil party, dominant for much of the previous century, then crumbled; in an unprecedented event in the nation's history, it fell to third place in an opinion poll conducted by ''
The Irish Times
''The Irish Times'' is an Irish daily broadsheet newspaper and online digital publication. It launched on 29 March 1859. The editor is Ruadhán Mac Cormaic. It is published every day except Sundays. ''The Irish Times'' is considered a newspaper ...
''—placing behind
Fine Gael
Fine Gael (, ; English: "Family (or Tribe) of the Irish") is a liberal-conservative and Christian-democratic political party in Ireland. Fine Gael is currently the third-largest party in the Republic of Ireland in terms of members of Dáil � ...
and the
Labour Party, the latter rising above Fianna Fáil for the first time. On 22 November, the Greens called for an election the following year. The
2011 general election replaced the ruling coalition with another one, between
Fine Gael and Labour. This coalition continued with the same austerity policies of the previous coalition, as the country's larger parties all favour a similar agenda, but subsequently lost power in the
2016 General Election.
Official statistics showed a drop in most crimes coinciding with the economic downturn. Burglaries, however, rose by approximately 10% and recorded prostitution offences more than doubled from 2009 to 2010. In late 2014 the unemployment rate was 11.0% on the seasonally adjusted measure, still over double the lows of the mid-2000s but down from a peak of 15.1% in early 2012. By May 2016, this figure had fallen to 7.8%, and had returned to a pre-downturn level of 4.5% by June 2019
Background and causes
The
economy of the Republic of Ireland
The economy of the Republic of Ireland is a highly developed knowledge economy, focused on services in high-tech, life sciences, financial services and agribusiness, including agrifood. Ireland is an open economy (3rd on the Index of Economi ...
expanded rapidly during the
Celtic Tiger
The "Celtic Tiger" ( ga, An Tíogar Ceilteach) is a term referring to the economy of Ireland from the mid-1990s to the late 2000s, a period of rapid real economic growth fuelled by foreign direct investment. The boom was dampened by a subseque ...
years (1995–2007) due to a low corporate tax rate, low
ECB interest rates, and other systemic factors (such as soft surveillance of banking supervision including against observance of
Basel
, french: link=no, Bâlois(e), it, Basilese
, neighboring_municipalities= Allschwil (BL), Hégenheim (FR-68), Binningen (BL), Birsfelden (BL), Bottmingen (BL), Huningue (FR-68), Münchenstein (BL), Muttenz (BL), Reinach (BL), Riehen (BS) ...
Core Principles, underdeveloped public financial management and anti-corruption systems and adoption of poor policies including a corporate tax system that fostered non-tradable goods and services through the construction industry). At the end of the third quarter of 2010, German banks had between US$186.4 billion and $208.3 billion in total exposure to Ireland with $57.8 billion in exposure to Irish banks. This led to an expansion of credit and a
property bubble
A real-estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real-estate markets, and typically follow a land boom. A land boom is the rapid increas ...
which petered out in 2007. Irish banks, already over-exposed to the Irish property market, came under severe pressure in September 2008 due to the global
financial crisis of 2007–08
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline o ...
.
The foreign borrowings of Irish banks rose from €15 billion to €110 billion in 2004–08. Much of this was borrowed on a three-month
rollover
Rollover or roll over may refer to:
Arts and entertainment
* ''Rollover'' (film), a 1981 American political thriller
*''Roll Over'', a 1992 album by Hound Dog
* "Roll Over", a 2006 song by Zico Chain
* "Roll Over", a 1989 song by Steven Wayne ...
basis to fund building projects that would not be sold for several years. When the properties could not be sold due to oversupply, the result was a classic
asset–liability mismatch
In finance, an asset–liability mismatch occurs when the financial terms of an institution's assets and liabilities do not correspond. Several types of mismatches are possible.
For example, a bank that chose to borrow entirely in US dollars and ...
. At the time of the
bank guarantee
A bank guarantee is a kind of guarantee from a lending organization. The bank guarantee signifies that the lending institution ensures that the liabilities of a debtor are going to be met. In other words, if the debtor fails to perform the obligat ...
the banks were said to be illiquid (but not insolvent) by €4 billion; this turned out to be an enormous underestimate.
Impact
The economy and government finances began to show signs of impending recession by the end of 2007 when tax revenues fell short of the 2007 annual budget forecast by €2.3 billion (5%), with stamp duties and income tax both falling short by €0.8 billion (19% and 5%) resulting in the 2007 general government budget surplus of €2.3 billion (1.2% of
GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is of ...
) being wiped out. An imminent recession became clear by mid-2008. Subsequently, government deficits increased, many businesses closed and unemployment increased. The
Irish Stock Exchange
Euronext Dublin (formerly The Irish Stock Exchange, ISE; ga, Stocmhalartán na hÉireann) is Ireland's main stock exchange, and has been in existence since 1793.
The Euronext Dublin lists debt and fund securities and is used as a European ga ...
(ISEQ) fell and many immigrant workers left.
Anglo Irish Bank
Anglo Irish Bank
Anglo Irish Bank was an Irish bank headquartered in Dublin from 1964 to 2011. It began to wind down after nationalisation in 2009. In July 2011 Anglo Irish merged with the Irish Nationwide Building Society, forming a new company named the Ir ...
was exposed to the Irish property bubble. A
hidden loans controversy in December 2008 led to a further drop in its share price. The ISEQ dropped to a 14-year low on 24 September 2009, probably triggered by the unexpected resignation of former Anglo Irish Bank director
Anne Heraty from the board of the
Irish Stock Exchange
Euronext Dublin (formerly The Irish Stock Exchange, ISE; ga, Stocmhalartán na hÉireann) is Ireland's main stock exchange, and has been in existence since 1793.
The Euronext Dublin lists debt and fund securities and is used as a European ga ...
the night before.
Property market
Due to the ending of the bubble, the residential and commercial property markets went into a severe slump with both sales and property values collapsing.
Developers such as
Liam Carroll began to fall behind on their loan repayments. Due to the financial crisis, banks such as
ACC
ACC most often refers to:
*Atlantic Coast Conference, an NCAA Division I collegiate athletic conference located in the US
*American College of Cardiology, A US-based nonprofit medical association that bestows credentials upon cardiovascular speci ...
pushed for their revenue recovery and requested
liquidation
Liquidation is the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia, New Zealand, Italy, and many other countries. The assets and property of the company are redistr ...
of the development firms.
Economy
The Irish economy entered severe recession in 2008, and then entered into an
economic depression
An economic depression is a period of carried long-term economical downturn that is result of lowered economic activity in one major or more national economies. Economic depression maybe related to one specific country were there is some economic ...
in 2009. The
Economic and Social Research Institute
The Economic and Social Research Institute is an Irish research institute founded in 1960 to provide evidence-based research used to inform public policy debate and decision-making. The research of the institute focuses on the areas of sustaina ...
predicted an economic contraction of 14% by 2010. In the first quarter in 2009,
GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is of ...
was down 8.5% from the same quarter the previous year, and
GNP
The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product ( GDP), plus factor incomes earned by foreign ...
down 12%. Unemployment rose from 8.75% to 11.4%. The economy exited recession in the third quarter of 2009, with GDP growing by 0.3% in the quarter, but GNP continued to contract, by 1.4%. The economy grew by 1.9% in Q1 and by 1.6% in Q2 of 2011 but contracted by 1.9% in Q3.
Unemployment
The unemployment rate rose from 4.2% in 2007 to reach 14.6% in February 2012.
Emigration
The
Central Statistics Office estimated that 34,500 people left the country from April 2009 to 2010, the largest net emigration since 1989. However, only 27,700 of these are Irish nationals, an increase of 12,400 since 2006. It's also notable that more people went somewhere other than the UK, EU or US, traditional destinations for Irish emigrants.
Downturn
2008: Cowen government

Following the May 2008 appointment of
Brian Cowen
Brian Bernard Cowen (born 10 January 1960) is an Irish former politician who served as Taoiseach and Leader of Fianna Fáil from 2008 to 2011.
Cowen was elected to Dáil Éireann in 1984, for the constituency of Laois–Offaly and served in a ...
as
Taoiseach
The Taoiseach is the head of government, or prime minister, of Ireland. The office is appointed by the president of Ireland upon the nomination of Dáil Éireann (the lower house of the Oireachtas, Ireland's national legislature) and the offi ...
, the ruling
Fianna Fáil
Fianna Fáil (, ; meaning 'Soldiers of Destiny' or 'Warriors of Fál'), officially Fianna Fáil – The Republican Party ( ga, audio=ga-Fianna Fáil.ogg, Fianna Fáil – An Páirtí Poblachtánach), is a conservative and Christian ...
party had been polling close to their 41% levels of the
2007 election but the party began to fall in the polls from September 2008. Their support fell to third place for the first time ever behind both leading opposition parties in a national opinion poll published in ''
The Irish Times
''The Irish Times'' is an Irish daily broadsheet newspaper and online digital publication. It launched on 29 March 1859. The editor is Ruadhán Mac Cormaic. It is published every day except Sundays. ''The Irish Times'' is considered a newspaper ...
'' on 13 February 2009, polling only 22%.
A 27 February poll, indicated that only 10% of voters were satisfied with the Government's performance, that over 50% would like an immediate general election.
They gained about 24% of the vote in the June 2009 local elections and continued to languish as the crisis intensified during the remainder of the year, reaching a new low of 17% support in September 2009. During the 2009/2010 period opposition calls for an early election intensified and some of their own TDs resigned from the party supporting the calls and reducing the Government majority to single digits. The Government was urged by the courts to hold a long-delayed Donegal South by-election. By December 2010, following the IMF intervention, their support reached a further record low of 13% and their coalition partners, the Green Party, announced that they would withdraw support from Government in January 2011 once the 2011 budget had been passed. The Government announced that an election would take place in Spring 2011 but the intended date had to be brought forward to 25 February 2011 following a widely criticised cabinet reshuffle. Taoiseach Cowen was replaced as party leader by
Micheál Martin
Micheál Martin (; born 1 August 1960) is an Irish Fianna Fáil politician who is serving as Tánaiste, Minister for Foreign Affairs and Minister for Defence since December 2022. He served as Taoiseach from 2020 to 2022 and has been Leader of ...
. At the election, Fianna Fáil received 17% of the vote and their seats collapsed from 71 outgoing to a record low of 20. The Fine Gael and Labour opposition secured record seat gains but no overall majority and formed a coalition government.
Government emergency budget of October 2008
Ireland officially declared it was in a recession in September 2008. Before this declaration, the Irish government announced, on 3 September 2008, that it would bring forward the 2009 government budget from its usual December date to 14 October 2008. In a statement, the government claimed that this was largely due to a decrease in the global economy. The budget, labelled "the toughest in many years", included a number of controversial measures such as a proposed income levy which was eventually restructured, and the withdrawal of previously promised
HPV vaccines for schoolgirls. Other results of the budget included a new income levy being imposed on all workers above a specified threshold and the closure of a number of military barracks near the border with
Northern Ireland
Northern Ireland ( ga, Tuaisceart Éireann ; sco, label=Ulster-Scots, Norlin Airlann) is a part of the United Kingdom, situated in the north-east of the island of Ireland, that is variously described as a country, province or region. North ...
.
An unexpected public outcry was invoked over the proposed withdrawal of medical cards and the threatened return of university fees. A series of demonstrations ensued amongst teachers and farmers, whilst on 22 October 2008, at least 25,000 pensioners and students descended in solidarity on the Irish parliament at
Leinster House
Leinster House ( ga, Teach Laighean) is the seat of the Oireachtas, the parliament of Ireland. Originally, it was the ducal palace of the Dukes of Leinster. Since 1922, it is a complex of buildings, of which the former ducal palace is the core, ...
,
Kildare Street
Kildare Street () is a street in Dublin, Ireland.
Location
Kildare Street is close to the principal shopping area of Grafton Street and Dawson Street, to which it is joined by Molesworth Street. Trinity College lies at the north end of t ...
,
Dublin
Dublin (; , or ) is the capital and largest city of Ireland. On a bay at the mouth of the River Liffey, it is in the province of Leinster, bordered on the south by the Dublin Mountains, a part of the Wicklow Mountains range. At the 2016 ...
.
Some of the pensioners were even seen to cheer on the students as the protests passed each other on the streets of Dublin. Changes to education led to a ministerial meeting with three
Church of Ireland
The Church of Ireland ( ga, Eaglais na hÉireann, ; sco, label=Ulster-Scots, Kirk o Airlann, ) is a Christian church in Ireland and an autonomous province of the Anglican Communion. It is organised on an all-Ireland basis and is the second l ...
bishops who were assured by O'Keeffe that religious instruction would be unaffected by the budget changes.
Rebellion within the ranks of the ruling
coalition government led to a number of defections of disenchanted
coalition members.
County Wicklow
County Wicklow ( ; ga, Contae Chill Mhantáin ) is a county in Ireland. The last of the traditional 32 counties, having been formed as late as 1606, it is part of the Eastern and Midland Region and the province of Leinster. It is bordered ...
TD,
Joe Behan
Joe Behan (born 30 July 1959) is an Irish politician. He served as a Teachta Dála (TD) for the Wicklow constituency from 2007 to 2011. He was elected as a TD at the 2007 general election.
A former teacher and primary school principal from Br ...
resigned from the Fianna Fáil party in protests at the proposed medical card changes after suggesting that past
taoisigh
The Taoiseach is the head of government, or prime minister, of Ireland. The office is appointed by the president of Ireland upon the nomination of Dáil Éireann (the lower house of the Oireachtas, Ireland's national legislature) and the offic ...
Éamon de Valera
Éamon de Valera (, ; first registered as George de Valero; changed some time before 1901 to Edward de Valera; 14 October 1882 – 29 August 1975) was a prominent Irish statesman and political leader. He served several terms as head of governm ...
and
Seán Lemass
Seán Francis Lemass (born John Francis Lemass; 15 July 1899 – 11 May 1971) was an Irish Fianna Fáil politician who served as Taoiseach and Leader of Fianna Fáil from 1959 to 1966. He also served as Tánaiste from 1957 to 1959, 1951 to 1954 ...
"would be turning in their graves at the decisions made in the past week".
Independent
Independent or Independents may refer to:
Arts, entertainment, and media Artist groups
* Independents (artist group), a group of modernist painters based in the New Hope, Pennsylvania, area of the United States during the early 1930s
* Independe ...
Deputy
Finian McGrath
Finian McGrath (born 9 April 1953) is an Irish former Independent politician who served as Minister of State for Disability Issues from 2016 to 2020. He served as a Teachta Dála (TD) from 2002 to 2020.
Early and personal life
Born in Tuam, Co ...
then threatened to withdraw his support for the government unless the plan to remove the overs 70s automatic right to a medical card was withdrawn completely.
Taoiseach
The Taoiseach is the head of government, or prime minister, of Ireland. The office is appointed by the president of Ireland upon the nomination of Dáil Éireann (the lower house of the Oireachtas, Ireland's national legislature) and the offi ...
Brian Cowen
Brian Bernard Cowen (born 10 January 1960) is an Irish former politician who served as Taoiseach and Leader of Fianna Fáil from 2008 to 2011.
Cowen was elected to Dáil Éireann in 1984, for the constituency of Laois–Offaly and served in a ...
postponed a planned trip to
China, sending
Minister for Education and Science Batt O'Keeffe
Bartholomew O'Keeffe (born 2 April 1945) is a former Irish Fianna Fáil politician who served as Minister for Enterprise, Trade and Innovation from 2010 to 2011, Minister for Education and Science from 2008 to 2010 and a Minister of State from ...
ahead to lead the delegation. Behan, alongside McGrath and former government minister
Jim McDaid
James Joseph McDaid (born 3 October 1949) is a former Irish Fianna Fáil politician who served as a Teachta Dála (TD) for the Donegal North-East constituency from June 1989 until he resigned in November 2010. He also served as Minister for T ...
, later voted against his former colleagues in two crucial
Dáil votes on medical cards and cancer vaccines. These defections reduced the Irish government's majority of twelve by one quarter.
A
supplementary budget was delivered in April 2009 to address a fiscal shortfall of over €4.5 billion.
Bank guarantee
On 29 September 2008 the government issued a 2-year unlimited guarantee of all debt (the Credit Institutions Financial Stabilisation Act, or CIFS guarantee) in favour of 6 banks. The comprehensive and unlimited scope of the Irish ''
fait accompli
Many words in the English vocabulary are of French origin, most coming from the Anglo-Norman spoken by the upper classes in England for several hundred years after the Norman Conquest, before the language settled into what became Modern Engl ...
'' surprised other governments, the ECB and the
European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body ...
at the time. There was an immediate response in the markets, with short term money market funds returning to Ireland, mainly from the UK.
Lorenzo Bini Smaghi
Lorenzo Bini Smaghi (born 29 November 1956 in Florence) is an Italian economist and banker who served as a member of the Executive Board of the European Central Bank from 2005 to 2011. He has been Chairman of the Board of Directors of the Socié ...
, member of the ECB Executive Board, later said, “The ECB learned about the issue and we found it was very surprising that a country comes out by itself – even in a situation in which the Irish were in, with a large banking system – to guarantee everything. It was surprising… It was surprising that someone would embark on blanket guarantee by itself. It was a dangerous gamble.”
The CIFS "blanket guarantee" of Irish domestic banks covered debts estimated at €440 billion at the start. It covered all debts of the 6 banks protected, was non-renewable, and was never called on. As such, the guarantee itself did not directly cost the State anything—and since the protected banks paid levies in exchange, it can technically be described as having made money. However, preventing the guarantee from being called on committed the Irish government to preventing the collapse of any of the participating banks, which would have resulted in the calling on of the guarantee at a time when the banks had large debts, bank assets were of little value for lack of buyers, and the government's finances were already under heavy strain.
The CIFS blanket guarantee was never renewed. An ancillary guarantee, the Eligible Liabilities Guarantee, was passed in 2009. This second guarantee scheme applied only to specified new debt (but applied to that debt until maturity), and was renewable on a six-monthly basis. It is this second guarantee that was renewed several times after the expiry of the CIFS guarantee.
Comment by the American embassy
Despite the bank guarantee in September, by December 2008 the American ambassador was reporting to Washington that no clear plan was in place, after an interview with John McCarthy of the Irish
Department of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
and two other officials. McCarthy was quoted as saying that "forecasting anything in the current uncertain environment is almost impossible" and that the government could "only react given the fast pace of the downturn". The interview was published in 2011 as a part of the
WikiLeaks
WikiLeaks () is an international non-profit organisation that published news leaks and classified media provided by anonymous sources. Julian Assange, an Australian Internet activist, is generally described as its founder and director and ...
disclosures.
2009: NAMA, strikes and industrial unrest
Sit-ins and strikes
On 5 January 2009,
Waterford Wedgwood
Waterford Wedgwood plc was an Irish holding company for a group of firms that specialized in the manufacture of high-quality porcelain, bone china and glass products, mostly for use as tableware or home decor. The group was dominated by Irish bu ...
entered receivership.
On 30 January, workers at the
Waterford Crystal
Waterford Crystal is a manufacturer of lead glass or "crystal", especially in cut glass, named after the city of Waterford, Ireland. In January 2009, the main Waterford Crystal manufacturing base on the edge of Waterford was closed due to the i ...
plant in
Kilbarry
Kilbarry () is a townland in the civil parish of Saint Anne's on the northside of Cork City in Ireland. Located close to the suburb of Blackpool, Kilbarry itself had just 56 residents in 2011. It is primarily zoned for commercial use, and an ID ...
were told they would be losing their jobs. A statement issued by the receiver, Deloitte's David Carson, confirmed that, of the 670 employees, 480 of them would be
laid off
A layoff or downsizing is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees (collective layoff) for business reasons, such as personnel management or downsizing (reducing the ...
.
The workers responded angrily to this unexpected decision and at least 100 of them began an unofficial sit-in in the visitors' gallery at the factory that night.
They insisted they would refuse to leave until they had met with Carson.
Following the revelations, there was a minor scuffle during which the main door to the visitors' centre was damaged.
Local
Sinn Féin
Sinn Féin ( , ; en, " eOurselves") is an Irish republican and democratic socialist political party active throughout both the Republic of Ireland and Northern Ireland.
The original Sinn Féin organisation was founded in 1905 by Arthur G ...
Councillor
Joe Kelly was amongst those who occupied the visitors' gallery.
A meeting held the following day did little to resolve the conflict,
with the sit-in continuing for almost two months until 22 March.
On 18 February 2009, 13,000 civil servants voted for industrial action over a proposed pension levy.
They effected this action on 26 February.
Days earlier, as many as 120,000 people, had protested on the streets of
Dublin
Dublin (; , or ) is the capital and largest city of Ireland. On a bay at the mouth of the River Liffey, it is in the province of Leinster, bordered on the south by the Dublin Mountains, a part of the Wicklow Mountains range. At the 2016 ...
on 21 February.
This was followed by a further march through the capital by gardaí on 25 February
and a lunch-time protest by 10,000 civil servants on 19 March 2009.
This was followed by two separate taxi drivers' protests in Dublin on 20 March 2009.
Labour leader Eamon Gilmore said at the time that a national strike would serve the country no good.
National Asset Management Agency
In April 2009, the government proposed a
National Asset Management Agency
The National Asset Management Agency (NAMA; ga, Gníomhaireacht Náisiúnta um Bhainistíocht Sócmhainní) is a body created by the government of Ireland in late 2009 in response to the Irish financial crisis and the deflation of the Irish ...
(NAMA) to take over large loans from the banks, enabling them to return to normal liquidity to assist in the economic recovery. NAMA's first appraisal was in September 2009, fortuitously timed just before the issue of the second one-year bank guarantee.
Increasing debt spiral
The costs of the bank rescues, NAMA and government deficits over the period look set to push Irish National Debt up to a ratio of 125% of GDP by 2015.
However, there have been a number of misleading estimates of debt statistics relating to the Irish financial crisis. Ireland, like Luxembourg, is home to a disproportionately large number of international financial services providers. Many statistical calculations include the debts of all banks located in Ireland without separating foreign owned banks from Irish banks. The liabilities of the Irish banks represent a figure equivalent to approximately 309% of GDP, the third highest in the EU.
Croke Park Agreement
The Irish Government and Irish Public Sector unions, including
IMPACT
Impact may refer to:
* Impact (mechanics), a high force or shock (mechanics) over a short time period
* Impact, Texas, a town in Taylor County, Texas, US
Science and technology
* Impact crater, a meteor crater caused by an impact event
* Impac ...
, negotiated the
Croke Park Agreement
The Croke Park Agreement, formally known as the "Public Service Agreement 2010-2014", is an agreement between the Irish government and various public sector unions and representative organisations. It is named after Croke Park, a large sporting ar ...
which provided for increased productivity, flexibility and savings from the public sector in exchange for no further pay cuts, and no lay offs.
2010: Bank bail-outs and protests
Economic Adjustment Programme for Ireland

In April 2010, following a marked increase in Irish 2-year bond yields, Ireland's
NTMA
The National Treasury Management Agency (NTMA) ( ga, Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta) is the agency that manages the assets and liabilities of the Government of Ireland. It was established on 1 December 1990 to borrow for ...
state debt agency said that it had "no major refinancing obligations" in 2010. Its requirement for in 2010 was matched by a cash balance, and it remarked: "We're very comfortably circumstanced". On 18 May the NTMA tested the market and sold a €1.5 billion issue that was three times oversubscribed. By September 2010 the banks could not raise finance and the bank guarantee was renewed for a third year. This had a negative impact on Irish government bonds, government help for the banks rose to 32% of GDP, and so the government started negotiations with the
ECB and the
IMF
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster gl ...
.
On the evening of 21 November 2010, the then
Taoiseach
The Taoiseach is the head of government, or prime minister, of Ireland. The office is appointed by the president of Ireland upon the nomination of Dáil Éireann (the lower house of the Oireachtas, Ireland's national legislature) and the offi ...
Brian Cowen
Brian Bernard Cowen (born 10 January 1960) is an Irish former politician who served as Taoiseach and Leader of Fianna Fáil from 2008 to 2011.
Cowen was elected to Dáil Éireann in 1984, for the constituency of Laois–Offaly and served in a ...
confirmed that Ireland had formally requested financial support from the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been ...
's
European Financial Stability Facility
The European Financial Stability Facility (EFSF) is a special purpose vehicle financed by members of the eurozone to address the European sovereign-debt crisis. It was agreed by the Council of the European Union on 9 May 2010, with the object ...
(EFSF) and the
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster gl ...
(IMF), a request which was welcomed by the
European Central Bank
The European Central Bank (ECB) is the prime component of the monetary Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's most important centra ...
and EU finance ministers.
The request was approved in principle by the finance ministers of the
eurozone
The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro ( €) as their primary currency and sole legal tender, and have thus fully implemented EMU polic ...
countries in a telephone conference call. Details of the financial arrangement were not immediately agreed upon, and remained to be determined in the following weeks, though the loan was believed to be in the region of €100 billion, of which approximately €8 billion was expected to be provided by the United Kingdom.
Following criticism of the action, the
Green Party
A green party is a formally organized political party based on the principles of green politics, such as social justice, environmentalism and nonviolence.
Greens believe that these issues are inherently related to one another as a foundati ...
leader
John Gormley
John Gormley (born 4 August 1959) is an Irish former Green Party politician who served as Minister for the Environment, Heritage and Local Government from June 2007 to January 2011, Leader of the Green Party from June 2007 to May 2011 and Lor ...
signalled that his party would seek a General Election in January 2011, with the implicit threat being that they would pull out of Government; with the addition of a number of Independent government TDs declaring that they would not continue to support the Government and speculation mounting,
Brian Cowen
Brian Bernard Cowen (born 10 January 1960) is an Irish former politician who served as Taoiseach and Leader of Fianna Fáil from 2008 to 2011.
Cowen was elected to Dáil Éireann in 1984, for the constituency of Laois–Offaly and served in a ...
called a press conference in which he announced that the Government intended to introduce and pass that year's Budget, and its constituent parliamentary bills, before having the
2011 election.
However, on 23 November, rebel members of Brian Cowen's ruling
Fianna Fáil
Fianna Fáil (, ; meaning 'Soldiers of Destiny' or 'Warriors of Fál'), officially Fianna Fáil – The Republican Party ( ga, audio=ga-Fianna Fáil.ogg, Fianna Fáil – An Páirtí Poblachtánach), is a conservative and Christian ...
party and opposition leaders sought no-confidence vote for the Government and dissolution of the
Oireachtas
The Oireachtas (, ), sometimes referred to as Oireachtas Éireann, is the bicameral parliament of Ireland. The Oireachtas consists of:
*The President of Ireland
*The two houses of the Oireachtas ( ga, Tithe an Oireachtais):
**Dáil Éireann ...
before a crucial budget vote on 7 December 2010, that should open the way for adopting the rescue package.
On 28 November, the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been ...
,
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster gl ...
and the Irish state agreed to an €85 billion rescue deal made up of €22.5 billion from the IMF, €22.5 billion from the
European Financial Stability Facility
The European Financial Stability Facility (EFSF) is a special purpose vehicle financed by members of the eurozone to address the European sovereign-debt crisis. It was agreed by the Council of the European Union on 9 May 2010, with the object ...
(EFSF), €17.5 billion from the Irish sovereign
National Pension Reserve Fund
National may refer to:
Common uses
* Nation or country
** Nationality – a ''national'' is a person who is subject to a nation, regardless of whether the person has full rights as a citizen
Places in the United States
* National, Maryland, ce ...
(NPRF) and bilateral loans from the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
,
Denmark
)
, song = ( en, "King Christian stood by the lofty mast")
, song_type = National and royal anthem
, image_map = EU-Denmark.svg
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of Denmark
, establishe ...
and
Sweden.
Eurogroup President
Jean-Claude Juncker
Jean-Claude Juncker (; born 9 December 1954) is a Luxembourgish politician who served as the 21st Prime Minister of Luxembourg from 1995 to 2013 and 12th President of the European Commission from 2014 to 2019. He also served as Finance Ministe ...
said that the deal includes €10 billion for bank recapitalisation, €25 billion for banking contingencies and €50 billion for financing the budget.
Protests against austerity
2010 saw several notable protests against austerity in Ireland.
2011: Government collapse
Collapse of the Cowen government
On 6 February 2011, it was revealed that Ireland had received a first €3.6 billion of the rescue package from the EFSF. This is a slightly higher amount than was previously expected mostly due to the better than expected auction of the EFSF bonds in January 2011. Later that month the coalition government of Fianna Fáil and the Green Party lost the
2011 general election and were replaced by a coalition made up of
Fine Gael
Fine Gael (, ; English: "Family (or Tribe) of the Irish") is a liberal-conservative and Christian-democratic political party in Ireland. Fine Gael is currently the third-largest party in the Republic of Ireland in terms of members of Dáil � ...
and the
Labour Party.
In April 2011, despite all the measures taken,
Moody's
Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides internation ...
downgraded the Irish banks' debt to
junk status. Debate continues on whether the
new government will need a "second bailout". By August 2011 the largest of the six state-guaranteed banks, Bank of Ireland, had a
market capitalisation
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by ...
of €2.86 billion, but loans to the six by the ECB and the Irish Central Bank were about €150 billion. Consumer research by British discount retailer
Poundland
Poundland is a British variety store chain founded in 1990. It once sold most items at the single price of £1, including clearance items and proprietary brands. The first pilot store opened in December 1990 following numerous rejections by ...
found that the term "eurozone" had negative associations. When expanding to the Republic in 2011 the company branded its stores as "
Dealz
Dealz is a chain of discount retail stores predominantly in Ireland, Spain and Poland, offering a range of general merchandise products, the majority of which are at the fixed price of €1.50 (in Ireland and Spain); £1.20; or zl 6.-
T ...
", despite the CEO stating that "Euroland" would be "the obvious choice".
Student actions
As the year went on students became increasingly concerned about the honesty and integrity of the pledge signed by
Ruairi Quinn
Ruairi Quinn (born 2 April 1946) is an Irish former Labour Party politician who served as Minister for Education and Skills from 2011 to 2014, Leader of the Labour Party from 1997 to 2002, Deputy Leader of the Labour Party from 1989 to 1997, ...
before the election that the Labour Party would oppose increased tuition fees.
[
On 16 November 2011, thousands of students, their parents and families, descended on Dublin from around the country and marched on Government Buildings amid concerns about the reintroduction of third-level fees. A small group also engaged in a sit-down protest outside the Fine Gael office on Dublin's Upper Mount Street.
At around 16:00 on 29 November 2011, three student union presidents (of Galway-Mayo Institute of Technology, University College Cork and IT Carlow) under the leadership of Union of Students in Ireland (USI) President Gary Redmond occupied a room at Department of Social Protection on Dublin's Store Street as part of a continued effort to have the Labour Party clarify its position on tuition fees. Police broke down the door of the room in which they were stationed and led them away.][ The students came armed with a chemical toilet and supplies of food that could have lasted them weeks. Ten student union presidents also attempted to occupy a room at the Department of Enterprise on Kildare Street for the same reasons.]
Nine students, also seeking clarification on the government's view on third-level fees, participated in a peaceful sit-down protest by occupying the constituency office of Fine Gael TD and former mayor Brian Walsh in Bohermore, Galway, around midday on 30 November 2011. They unfurled a banner on the roof with the message, "FREE EDUCATION NOTHING LESS". They were imprisoned by the police and released a short time later.
On 2 December 2011, eight students from the National University of Ireland, Maynooth
The National University of Ireland, Maynooth (NUIM; ga, Ollscoil na hÉireann Mhá Nuad), commonly known as Maynooth University (MU), is a constituent university of the National University of Ireland in Maynooth, County Kildare, Ireland. It w ...
(NUIM), including the university's student union president Rob Munnelly, began occupying the Naas
Naas ( ; ga, Nás na Ríogh or ) is the county town of County Kildare in Ireland. In 2016, it had a population of 21,393, making it the second largest town in County Kildare after Newbridge.
History
The name of Naas has been recorded in th ...
constituency office of Fine Gael TD Anthony Lawlor
Anthony Lawlor (born 13 June 1959) is an Irish former Fine Gael politician who served as a Senator for the Agricultural Panel from 2018 to 2020. He served as a Teachta Dála (TD) for the Kildare North constituency from 2011 to 2016.
Early life
...
. They did so with sleeping bags, clothes, a chemical toilet and a week's supply of food and were supported by other students on Facebook
Facebook is an online social media and social networking service owned by American company Meta Platforms. Founded in 2004 by Mark Zuckerberg with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dustin ...
and Twitter
Twitter is an online social media and social networking service owned and operated by American company Twitter, Inc., on which users post and interact with 280-character-long messages known as "tweets". Registered users can post, like, and ...
. During the occupation Munnelly debated with Lawlor live on Kildare TV, USI President Gary Redmond visited the revolting students and a banner with the slogan "SAVE THE GRANT" was erected at Lawlor's entrance.
Other protest actions
The closure of the Accident & Emergency Department at Roscommon hospital led to continued protests by the Roscommon Hospital Action Committee.
Occupy Dame Street
Occupy Dame Street (ODS) or Occupy Dublin was a Nonviolent resistance, peaceful protest and Demonstration (people), demonstration against economic inequality, social injustice and corporate greed taking place outside the Central Bank of Ireland ...
began on 8 October 2011, a Saturday afternoon.
On 26 November 2011, thousands of people marched against austerity in Dublin.
On 1 December 2011, Roscrea District Court solicitors staged a walkout over the courthouse's closure.
Hundreds of people from County Donegal
County Donegal ( ; ga, Contae Dhún na nGall) is a county of Ireland in the province of Ulster and in the Northern and Western Region. It is named after the town of Donegal in the south of the county. It has also been known as County Tyrconn ...
converged on Buncrana
Buncrana ( ; ) is a town in County Donegal, Ireland. It is beside Lough Swilly on the Inishowen peninsula, northwest of Derry and north of Letterkenny. In the 2016 census, the population was 6,785 making it the second most populous town in Cou ...
on 3 December 2011 to protest against austerity and to tell the government that "Inishowen
Inishowen () is a peninsula in the north of County Donegal in Ireland. Inishowen is the largest peninsula on the island of Ireland.
The Inishowen peninsula includes Ireland's most northerly point, Malin Head. The Grianan of Aileach, a ringf ...
and Donegal says no to further cuts and austerity".
The Vita Cortex sit-in
The Vita Cortex sit-in was a peaceful protest at the Vita Cortex plant on the Kinsale Road in Cork, Ireland, which began on 16 December 2011 after workers were made redundant without pay with immediate effect. The dispute led to nationwide prote ...
began in Cork on 16 December 2011.
There was also rebellion within the ranks of government. On 15 November 2011, Willie Penrose
Willie Penrose (born 1 August 1956) is a former Irish Labour Party politician who served as Chairman of the Labour Parliamentary Party from 2016 to 2020 and a Minister of State from March 2011 to November 2011. He served as a Teachta Dála ( ...
resigned as Minister of State for Housing and Planning
Minister may refer to:
* Minister (Christianity), a Christian cleric
** Minister (Catholic Church)
* Minister (government), a member of government who heads a ministry (government department)
** Minister without portfolio, a member of government ...
due to his opposition to the Government's decision to close the army barracks in Mullingar
Mullingar ( ; ) is the county town of County Westmeath in Ireland. It is the third most populous town in the Midland Region, with a population of 20,928 in the 2016 census.
The Counties of Meath and Westmeath Act 1543 proclaimed Westmea ...
. He also resigned the Labour parliamentary party whip. Tommy Broughan
Thomas Broughan (born 1 August 1947) is a former Irish Independent politician who served as a Teachta Dála (TD) from 1992 to 2020.
He sat as a TD for the Labour Party until late 2011, representing the Dublin North-East constituency from 1992 ...
TD was expelled from the Labour Party on 1 December 2011 after voting to reject a government amendment to extend the bank guarantee for another year. Later that month, Patrick Nulty
Patrick Nulty (born 18 November 1982) is a teacher, university lecturer and former Irish Labour Party politician. He was elected as a Teachta Dála (TD) for Dublin West at a by-election in October 2011. He sat as an independent TD after losing ...
, another Labour TD, also voted against the government.
2012: Occupy and Fiscal referendum
In January 2012, Taoiseach Enda Kenny denied Ireland would need a second bailout but admitted "very significant economic challenges" were ahead.
Industrial action
The Vita Cortex sit-in
The Vita Cortex sit-in was a peaceful protest at the Vita Cortex plant on the Kinsale Road in Cork, Ireland, which began on 16 December 2011 after workers were made redundant without pay with immediate effect. The dispute led to nationwide prote ...
continued in Cork.
On 27 March, 2,104 jobs were lost as video games retail company Game
A game is a structured form of play, usually undertaken for entertainment or fun, and sometimes used as an educational tool. Many games are also considered to be work (such as professional players of spectator sports or games) or art (su ...
closed 277 stores. Staff began a sit-in.
Occupy
Occupy Dame Street
Occupy Dame Street (ODS) or Occupy Dublin was a Nonviolent resistance, peaceful protest and Demonstration (people), demonstration against economic inequality, social injustice and corporate greed taking place outside the Central Bank of Ireland ...
continued in Dublin. In January, Occupy Cork
Occupy Cork was a peaceful protest and demonstration against alleged economic inequality, social injustice and corporate greed taking place on the junction of the Grand Parade and South Mall and at the NAMA-listed Stapleton House on Oliver ...
occupied a building in the city, while Occupy Belfast
The Occupy Wall Street protests, which started in 2011, inspired a wide international response. There have been hundreds of Occupy movement protests worldwide over time, intended and organized as non-violent protest against the wealthy, as well ...
took over the Bank of Ireland
Bank of Ireland Group plc ( ga, Banc na hÉireann) is a commercial bank operation in Ireland and one of the traditional Big Four Irish banks. Historically the premier banking organisation in Ireland, the Bank occupies a unique position in Irish ...
in the city.
Protests
While attending a buffet at a Letterkenny
Letterkenny ( ga, Leitir Ceanainn , meaning 'hillside of the O'Cannons'), nicknamed 'the Cathedral Town', is the largest and most populous town in County Donegal, a county in Ulster, the northern province in Ireland. Letterkenny lies on the ...
hotel on 24 February 2012, Transport Minister Leo Varadkar
Leo Eric Varadkar ( ; born 18 January 1979) is an Irish politician who has served as Taoiseach since December 2022, and previously from 2017 to 2020. He served as Tánaiste and Minister for Enterprise, Trade and Employment from June 2020 to ...
was heckled and booed by local residents who repeatedly shouted "Shame on you" at him. On 25 February 2012, demonstrators protesting against the downgrading of schools in Bunbeg
''An Bun Beag'' (anglicised as Bunbeg), meaning "the small river mouth", is a small Gaeltacht village and townland in County Donegal, Ireland. It is officially the smallest townland in '' Gaoth Dobhair'' (Gweedore), but today the name Bunbeg is ...
, County Donegal
County Donegal ( ; ga, Contae Dhún na nGall) is a county of Ireland in the province of Ulster and in the Northern and Western Region. It is named after the town of Donegal in the south of the county. It has also been known as County Tyrconn ...
, marched on the office of their local TD, Fine Gael Junior Minister Dinny McGinley
Denis McGinley (born 27 April 1945) is an Irish former Fine Gael politician who served as a Minister of State from 2011 to 2014. He served as a Teachta Dála (TD) for the Donegal South-West constituency from 1982 to 2016.
Background
McGinley w ...
. There were also protests in County Mayo
County Mayo (; ga, Contae Mhaigh Eo, meaning "Plain of the yew trees") is a county in Ireland. In the West of Ireland, in the province of Connacht, it is named after the village of Mayo, now generally known as Mayo Abbey. Mayo County Coun ...
on the same day.
On 31 March, Ireland was reported by international media to be facing a popular revolt after government figures indicated less than half of the country's households had paid the new property tax by that day's deadline as thousands of people from across the country marched on the governing Fine Gael party's Ard Fheis at the Convention Centre Dublin
The Convention Centre Dublin () is a convention centre in the Dublin Docklands, Ireland. The Convention centre overlooks the River Liffey at Spencer Dock. It was designed by the Irish-born American architect Kevin Roche. Construction started ...
. The previous evening, Justice minister Alan Shatter
Alan Joseph Shatter (born 14 February 1951) is an Irish lawyer, author and former Fine Gael politician who served as Minister for Justice (Ireland), Minister for Justice and Equality and Minister for Defence (Ireland), Minister for Defence fro ...
was involved in controversy after telling those who objected to the government's Household Charge to "get a life", remarks made on his way into the Fine Gael annual conference at the Convention Centre.
In April 2012, the ruling Labour Party held its centenary conference in the Bailey Allen Hall at NUI Galway
The University of Galway ( ga, Ollscoil na Gaillimhe) is a public research university located in the city of Galway, Ireland. A tertiary education and research institution, the university was awarded the full five QS stars for excellence in 201 ...
. Gardaí used pepper spray
Pepper spray, oleoresin capsicum spray, OC spray, capsaicin spray, or capsicum spray is a lachrymatory agent (a compound that irritates the eyes to cause a burning sensation, pain, and temporary blindness) used in policing, riot control, ...
to hold back anti-austerity demonstrators after they broke through a Garda barrier while protesting against government.
In October 2012, the ministerial car of Tánaiste Eamon Gilmore was subjected to eggings and kickings by protesters against cuts in Dublin.
Referendum on Fiscal Stability Treaty
In 2012 the government sought to ratify the . The Attorney General of Ireland, Attorney General advised that a referendum was required to ensure consistency with the Constitution of Ireland, constitution. Consequently, the Thirtieth Amendment of the Constitution of Ireland was passed on 31 May with 60.3% in favour on a turnout of 50%. This enshrined the Fiscal Treaty into Article 29 of the constitution.
2013: IBRC and bailout exit
Liquidation of IBRC
On the night of 6–7 February 2013, the Irish Bank Resolution Corporation (IBRC) was dramatically liquidated after the Fine Gael/Labour coalition passed emergency overnight legislation through the Oireachtas
The Oireachtas (, ), sometimes referred to as Oireachtas Éireann, is the bicameral parliament of Ireland. The Oireachtas consists of:
*The President of Ireland
*The two houses of the Oireachtas ( ga, Tithe an Oireachtais):
**Dáil Éireann ...
while President of Ireland, President Michael D. Higgins was flown home from the three-day official visit to Italy upon which he had embarked that very morning. This was the night before the Irish Supreme Court was due to hear an appeal by a Dublin business man, David Hall, against the High Court's ruling that he did not have the standing or locus standi to challenge the legality of the €3.06 billion promissory note payment that was due at the end of March. Hall's original argument before the High Court was that the payment of the €31 billion in promissory notes in respect of the now defunct Anglo Irish Bank was illegal as their issuing in 2010 was not approved by a Dáil vote. Every IBRC employee had their employment terminated with immediate effect, with many learning of this as it was announced on national television station TV3 (Ireland), TV3.[
Dáil Éireann was called into session for 22:30 on 6 February 2013. The Opposition did not have a copy of the proposed legislation to debate with five minutes before this. They had received copies by 22:32 and the Dáil session was then delayed until 23:00. ]Fine Gael
Fine Gael (, ; English: "Family (or Tribe) of the Irish") is a liberal-conservative and Christian-democratic political party in Ireland. Fine Gael is currently the third-largest party in the Republic of Ireland in terms of members of Dáil � ...
TD Jerry Buttimer tweeted a photo of the Bill at 22:35.[
Minister for Finance (Ireland), Minister Michael Noonan (Fine Gael politician), Michael Noonan blamed the rush on a leak to foreign media. Ursula Halligan said on TV3 that the "leak came from Frankfurt's end".]
The proposed legislation eventually passed in the Dáil by 113 to 35 at 03:00. In Seanad Éireann it passed by 38 to 6. President of Ireland, President Michael D. Higgins rushed home from his visit to Rome and signed the Irish Bank Resolution Corporation Bill 2013 into law at Áras an Uachtaráin early on 7 February 2013.
The Opposition criticised the suddenness with which the legislation was rushed through. Many deputies did not have time to read it. The range of opposition TDs critical of it included Joe Higgins (politician), Joe Higgins, Catherine Murphy (politician), Catherine Murphy, Richard Boyd Barrett, Luke 'Ming' Flanagan, Mick Wallace, Thomas Pringle (politician), Thomas Pringle and Mattie McGrath.[ According to Independent TD Stephen Donnelly in a speech addressed to Minister Noonan in the chamber, Donnelly also warned that Section 17 of the Bill "could be ruled unconstitutional" and described the Bill and the manner of its attempted introduction as "very, very dangerous" and "a fundamental erosion of parliamentary democracy." He suggested that Noonan withdraw the bill and return to the Dáil "before the courts open for business in the morning, with the minimal legislation needed to protect state assets."
Ireland's mainstream media overwhelmingly supported the legislation, though Vincent Browne called it "lunatic stuff" on TV3.][ On 7 February, RTÉ lunchtime newsreader Sean O'Rourke described it as a "breakthrough in Ireland's attempt to lift the debt burden".] The 8 February edition of ''The Irish Times
''The Irish Times'' is an Irish daily broadsheet newspaper and online digital publication. It launched on 29 March 1859. The editor is Ruadhán Mac Cormaic. It is published every day except Sundays. ''The Irish Times'' is considered a newspaper ...
'' contained a section dedicated to the issue, which was described as resembling "a press release from the Department of Finance".[ Much of the media focused on the funny little tweets which members of the public contributed to the #promnight hashtag, with some saying they had, in common with many of the politicians in the Dáil, fallen asleep.
On 17 February 2013, the Chief Financial Officer of Anglo Irish Bank, Maarten van Eden, tendered his resignation writing that "''I have no confidence whatsoever in the ability of government to do the right thing for the financial sector.''" and describing the government's actions on the prommissory note as "''pure window dressing''".
]
Exit from bailout
Ireland officially exited the Troika bailout in December 2013. Taoiseach Enda Kenny gave an address to mark this official end, in which he said the country was moving in the right direction and claimed the economy was starting to recover. Commentators, including Gene Kerrigan and Vincent Browne, questioned its significance to the Irish economy, and many viewed it as a cosmetic public relations exercise. On 13 March 2013, Ireland managed to regain complete lending access on financial markets, when it successfully issued €5bn of 10-year maturity bonds at a yield of 4.3%. After having ended its bailout programme as scheduled in December 2013, there was no need for additional bailout support.
Signs of recovery since 2014
After the bailout exit, the economy started to recover, recording growth of 4.8% in 2014. National debt fell to 109% of GDP and the budget deficit fell to 3.1% in the fourth quarter of 2014.
However, opinion polls for the Fine Gael-Labour coalition in 2014 showed that approval ratings for government policies continued to drop and after numerous allegations of Gardaí malpractice resulted in the Minister for Justice Alan Shatter resigning and Taoiseach Enda Kenny awarding himself the office of Minister of Defence. As well as this the Government had formally established Irish Water, a company to charge people for water usage and had begun to install water metres in front of every property across the country, which caused huge controversy and protest throughout Ireland.
During 2015, unemployment fell from 10.1% to 8.8%, while the economy grew by an estimated 6.7%. In November 2015, it was reported that exchequer receipts were €3 Billion ahead of target and that the government's tax revenues had risen by 10.5% throughout 2015. During 2015, Fine Gael rose in the opinion polls, while their coalition partner Labour struggled to rise above 10%.
In 2016 there was significant attention on the accuracy and reliability of figures that indicated economic recovery. CSO figures—which seemed to indicate that Irish GDP rose by 26.3 per cent year-on-year 2015 to 2016—were acknowledged as being skewed by the profits of a small number of multinationals and some shell companies. The term "Leprechaun economics" was coined to describe this phenomenon. In 2017, the Anti-Austerity Alliance renamed itself Solidarity (Ireland), Solidarity to shift its focus away from the economy.[; ; ]
See also
*Anti-austerity protests in Ireland
*European debt crisis
* Put on the green jersey
References
{{European sovereign-debt crisis
Post-2008 Irish economic downturn,
Economic history of Ireland, Economic downturn
Great Recession in Europe, Ireland
2008 in the Republic of Ireland, Financial crisis
2009 in the Republic of Ireland, Financial crisis
2010 in the Republic of Ireland, Financial crisis
2011 in the Republic of Ireland, Financial crisis
2012 in the Republic of Ireland, Financial crisis
2013 in the Republic of Ireland, Financial crisis
2014 in the Republic of Ireland, Financial crisis
2000s economic history, Ireland
2010s economic history, Ireland
2000s in Irish politics, Financial crisis
2010s in Irish politics, Financial crisis
Brian Cowen
Eurozone crisis, Ireland Financial crisis
Financial crises, Irish financial crisis