Saturday, February 26, 2011

February 26, 2011

Ireland’s Governing Party Ousted in Historic Loss

LONDON — Ireland ousted its discredited government on Saturday, electing new leaders who pledged to restore faith in the country after the trauma of a calamitous economic collapse.
With most of the votes counted after the general election on Friday, a coalition government of the center-right Fine Gael and the Labour Party was on track to win a comfortable majority in Parliament.
The next prime minister is likely to be Enda Kenny, a career Fine Gael politician who is expected to calm the turmoil of the past few years.
“I intend to send out a clear message around the world that this country has given my party a massive endorsement to provide stable and strong government with a clear agenda,” Mr. Kenny said after winning his parliamentary seat.
Fianna Fail, which has run the government for 14 years, suffered its worst showing in its more than 80-year history. It won 78 seats in 2007; this time, it was on course to win as few as 25 out of a total of 166. Of the 47 parliamentary seats in Dublin, only the seat held by Brian Lenihan, who served as finance minister, was set to go to Fianna Fail.
The results by late Saturday showed that Fine Gael was expected to win 76 seats and Labour 36. The Green Party was expected to lose all six of the seats it now holds, and Sinn Fein was on course to take 12 seats — one of them to be held by Gerry Adams, the party’s president, who resigned from his posts in the British Parliament and in the Belfast Assembly in Northern Ireland to run in the Irish Republic.
Fianna Fail has been blamed for presiding over an economy that spiraled out of control and then, unregulated and unmanageable, came crashing down. In 2008, when Ireland’s spectacular building boom collapsed, and the Irish banks that had fueled it threatened to collapse, too, the government, led by Prime Minister Brian Cowen, tried to solve the crisis by pledging to guarantee the banks’ debts.
That move has proved to be a huge drain on the nation’s finances, with the government pumping tens of billions of dollars into the banks to keep them afloat. In November, Ireland reluctantly accepted an international loan worth about $93 billion; in return, it pledged to adhere to a brutal four-year austerity program and to repay much of the money at onerous interest rates.
The terms of the loan humiliated Ireland, and many economists say they are worried that the country will be unable to keep up with even the interest payments.
Mr. Cowen, whose resignation as party leader last month led to the election, said in a television interview that his government had nothing to be ashamed of. He said he had explained his decisions fully and repeatedly.
“Everything I did, I did for the good of this country as I saw it; I did it conscientiously,” he told the state broadcasting network RTE.
Mr. Kenny’s party has put forth an ambitious program to reduce unemployment, cut government costs and restore confidence in the Irish economy. It has also pledged to renegotiate the terms of the $93 billion loan — a promise that might be hard to achieve.
Mr. Kenny said the country was ready to fight its way to prosperity and international credibility. “Ireland,” he said, “is open for business.”