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Voters hammer Irish government
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By Padraic Halpin
STRANOLAR, Ireland (Reuters) - Ireland's government saw its parliamentary majority cut to two on Friday, as voters in one of the ruling party's heartlands punished it for seeking an IMF bailout and backed maverick nationalists Sinn...
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Ireland's Prime Minister Brian Cowen (R) pauses during a news conference in Government Buildings, Dublin November 24, 2010.
Credit: Reuters/Stringer
By Padraic Halpin
STRANOLAR, Ireland |
Fri Nov 26, 2010 10:43am EST
STRANOLAR, Ireland (Reuters) - Ireland's government saw its parliamentary majority cut to two on Friday, as voters in one of the ruling party's heartlands punished it for seeking an IMF bailout and backed maverick nationalists Sinn Fein.
The loss of a seat in the remote northwestern county of Donegal complicates the country's politics even as the deeply unpopular government enters the final days of a tense negotiation for an IMF/EU bailout for its banks and budget.
In what was expected to be the last day of trading before the terms of the bailout would be announced over the weekend, the extra yield investors demand to hold Irish debt reached a record high of nearly 7 percentage points above benchmark German bunds.
Deputy Prime Minister Mary Coughlan conceded that the ruling Fianna Fail party's candidate had lost the seat to Sinn Fein, a nationalist leftwing party which has capitalized on popular anger over the government's handling of the economic crisis.
The winner, Sinn Fein's Pearse Doherty, said he was headed to Dublin to vote against the government's budget on December 7 and try to force an election.
"I will try and bring down this government and make sure all of the parties get to go to the people," he said.
An election will take place soon anyway because Fianna Fail's junior coalition partners, the Greens, said this week they will pull out of the government after the legislation underpinning the budget is passed, probably in the spring.
Sinn Fein's head Gerry Adams, best known internationally as a leader of the nationalist movement during decades of violence in British-ruled Northern Ireland, said the goal was to take power in Dublin and end IMF-imposed austerity measures.
"We didn't buy into the austerity. We're not for the savage cuts where once again in the four year plan the wealthy get off," he told reporters, referring to a package of 15 billion euros in spending cuts and tax hikes announced this week by Cowen.
Sinn Fein, which now has a fringe role, is expected to emerge as a bigger opposition force, a sign of how dramatically the country's politics are being upended by its economic crisis.
With nearly all ballots sifted, Doherty was leading the Fianna Fail candidate by 40 percent to about 20 percent, according to party representatives monitoring the count.
BAILOUT
The decision to take money and instructions from Europe has provided plenty of material for Irish comedians.
The country's top talk radio show, the "Joe Duffy Show" played the "new" Irish national anthem to the tune of "Deutschland Ueber Alles" on Friday.
Cowen is expected to agree to an 85 billion euro assistance package from the IMF and the EU at the weekend, meant to prevent trouble spreading in the euro zone.
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