Micheál Martin returns as Irish premier, bracing for Trump fallout

investing.com 23/01/2025 - 13:45 PM

By Padraic Halpin and Conor Humphries

DUBLIN (Reuters)

Micheál Martin was elected Irish prime minister for the second time by a coalition of the two large centre-right parties and independents on Thursday, emphasizing the task of warding off threats arising from Donald Trump’s return as U.S. president.

The government is preparing for the fallout from the new U.S. administration under Trump, whose pledges to disrupt corporate tax rules and impose tariffs could significantly threaten Ireland’s multinational-focused economy.

The coalition promises to use a tax windfall from U.S. multinationals to boost public sector investment, address infrastructure deficits, cut taxes, and build Ireland’s sovereign wealth funds. This coalition marks the second consecutive governing bloc between traditional rivals Fine Gael and Fianna Fail, who have collectively led every government since Ireland’s inception. This time, independents replace the Green Party, which saw significant losses.

“For us today, the task is to protect Ireland’s strength at a moment of real threat, while also addressing critical social needs. By any reasonable measure, this is a challenging moment in world history,” an emotional Martin told parliament after his election in a 95-76 vote.

Martin emphasized that strengthening “three essential relationships” with Europe, the U.S., and Britain is central to protecting and renewing Ireland’s economic model.
“We are not naive about the realities of change (in the U.S.), but equally the Ireland-America relationship is one which benefits us both and it will emerge strongly no matter what.”

The initially scheduled vote to elect Martin on Wednesday was disrupted by opposition protests concerning speaking rights for independent lawmakers supporting the new coalition, leading to multiple suspensions of parliament.

Martin, 64, previously served as premier from 2020-22 before handing the role to Fine Gael for the latter half of the term. Under the agreement post the November 29 election, outgoing prime minister Simon Harris is expected to resume his premiership in late 2027.

Harris will take over Martin’s role as deputy prime minister and will likely become foreign minister later on Thursday, while Fine Gael’s Paschal Donohoe, currently chair of the group of euro zone finance ministers, is anticipated to return as finance minister.

Martin, who has been a member of parliament for 36 years, was a senior figure in the Fianna Fail government that engaged with the EU/IMF bailout in 2010, an episode that resulted in a severe 2011 electoral setback just after he took over as leader. The former history teacher has held various senior ministries, including health, trade, and education, and helped restore the party’s fortunes to regain government nine years later.




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