Irish Government’s Turbulent Start as Taoiseach Appointment Delayed Over Row with Opposition

An unprecedented row over opposition speaking rights in the Dáil (Irish Parliament) caused an unexpected delay in appointing the new Taoiseach (Irish Prime Minister). Following weeks of negotiations post the November 2024 General Election, Fianna Fáil and Fine Gael agreed to once again form a government together. Supported by a group of regional independent TDs (Members of Parliament) to secure a comfortable majority, the incoming Government had a turbulent start as opposition members disrupted Dáil proceedings.

Below, FTI Consulting Ireland’s Public Affairs Team looks at the government formation, the new Irish Cabinet and key ministerial roles, and the key policy areas and priorities which will set the legislative agenda for this government over the coming years.

What Happened

Fianna Fáil Leader, Micheál Martin, was finally appointed Ireland’s Taoiseach on Thursday, a day later than expected, winning the Dáil vote to become Taoiseach with the backing of his party and their coalition partners Fine Gael and independent TDs.

The vote was meant to take place on Wednesday but couldn’t proceed as planned after a row erupted between opposition parties, the Government and the Ceann Comhairle (Speaker of the House) over opposition speaking rights. A decision by the Ceann Comhairle to allow a technical group, that includes a number of independent TDs backing the government, opposition speaking rights led to chaotic scenes in the Dáil on Wednesday. Opposition parties, presenting a united front, disrupted proceedings and triggered several suspensions leading to no vote on the Taoiseach taking place. Intense talks took place Wednesday night into Thursday morning before a solution was agreed, allowing the vote to take place on Thursday.

This will be Martin’s second time in the role, having previously held the position from 2020-2022. Speaking before he travelled to meet with President Michael D Higgins to receive his seal of office, he said:

“Ireland is an open democracy with an open economy – we cannot expect to stand unaffected on the sidelines. We must protect and renew an economic model which delivers high employment and resources for public services. Central to this we must strengthen our three essential relationships with Europe, with the US and with the UK.”

Confirmation of the new coalition also marked the start of Fine Gael’s historic fourth consecutive time in government since the 2011 General Election. Leader Simon Harris, who will take on the role of Tánaiste (Deputy Prime Minister) said:

“While it is clear a period of some economic instability may lie ahead, our public finances are in a position to ensure we can make key progress on increasing infrastructure delivery and improving services.”

The New Irish Cabinet

As part of the government formation deal, Fianna Fáil has 8 senior ministries, while Fine Gael has 7. As was the case in December 2020, the two parties have again agreed to rotate the Office of the Taoiseach between the party leaders, with Simon Harris taking over on 16 November 2027.

• Taoiseach (Prime Minister) | Micheál Martin (Fianna Fáil)
• Tanáiste (Deputy Prime Minister); Minister for Foreign Affairs and Trade; and Minister for Defence | Simon Harris (Fine Gael)
• Minister for Finance | Paschal Donohoe (Fine Gael)
• Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation | Jack Chambers (Fianna Fáil)
• Minister for Enterprise, Tourism and Employment | Peter Burke (Fine Gael)
• Minister for Health | Jennifer Carroll MacNeill (Fine Gael)
• Minister for Climate, Environment and Energy; and Minister for Transport | Darragh O’Brien (Fianna Fáil)
• Minister for Justice, Home Affairs and Migration | Jim O’Callaghan (Fianna Fáil)
• Minister for Social Protection; and Minister for Rural, Community Development and the Gaeltacht | Dara Calleary (Fianna Fáil)
• Minister for Housing, Local Government and Heritage | James Browne (Fianna Fáil)
• Minister for Education and Youth | Helen McEntee (Fine Gael)
• Minister for Further and Higher Education, Research, Innovation and Science | James Lawless (Fianna Fáil)
• Minister for Children, Disability and Equality | Norma Foley (Fianna Fáil)
• Minister for Agriculture, Food, Fisheries and the Marine | Martin Heydon (Fine Gael)
• Minister for Arts, Media, Communications, Culture and Sport | Patrick O’Donovan (Fine Gael)

These senior ministers will be supported by 23 Ministers of State, the largest number ever. As part of the government formation deal, two of the independent TDs will be ‘super-juniors’ – Ministers of State who will sit at Cabinet. Taoiseach Martin is expected to appoint the Ministers of State next week.

The New Government’s Priorities

Preparing for global economic disruption

The Programme for Government, which sets out the coalitions plan for the next five years, opens with a strong focus on preserving Ireland’s economic growth, with the coalition acknowledging that the global economic environment the country has benefited from is no longer guaranteed. “The open economic model which we rely on, based on a strong enterprise economy, free trade, competitiveness, and innovation, is facing new headwinds which we must prepare for” the document states, before going on to outline the measures they plan on taking to mitigate and prepare for any potential economic disruption and increased protectionism. One initiative is the establishment of a ‘US-based Economic Advisory Panel’, comprising senior Irish or Irish-connected decision-makers in key business sectors, highlighting a clear focus on the US market. With numerous US multinationals operating in Ireland and exporting to the US, the threat of tariffs under President Trump, coupled with the US withdrawal from the OECD tax agreement, presents a significant risk to Ireland’s economy which has benefitted from soaring corporate tax receipts in recent years. How the government navigates this challenging backdrop – both in terms of increased competitiveness and a potential global trade war – to ensure Irish economic stability will likely define this government’s time.

Leveraging the EU

In navigating the evolving political landscape over the coming years, the new Government will look to the EU and member states to shape an agenda that will safeguard both the European and Irish economies. The coalition plans to work with “likeminded” EU member states to ensure the fair application of state aid rules and protect the principles of EU economic policy centred on competitiveness, innovation, and a level playing field. Ireland is set to hold the EU Presidency in the latter half of 2026, with the Programme for Government suggesting that the Common Agricultural Policy and further integration of the EU Single Market will be key priorities during its term.

Safeguarding life sciences investment

As the third largest exporter of pharmaceuticals in the world, the Government is keen to safeguard the thousands of Irish jobs reliant on the sector and its significant contribution to the economy. During the election campaign, industry actively voiced concerns about the challenges it faced, including limited access to new medicines for patients, particularly with rare diseases, and Ireland’s lagging progress in clinical trials, warning it could impact future investment in Ireland. The Government clearly heard these concerns, and the Programme contains measures aimed at addressing each of these issues, as well as the development of a National Life Sciences Strategy.

Growing financial services sector

Another key sector for Ireland is financial services, which employs over 100,000 people and contributes €18.2 billion annually to the country’s gross domestic product. The government is keen to support growth in the industry, aiming to create 9,000 new jobs in international finance by 2030 through initiatives including a new National Fintech Hub. The Programme also promises an enhanced regulatory framework aimed at attracting private market investment into the economy which will enhance Ireland’s funds and asset management offerings.

Delivering renewable energy

There was much talk about whether this government will roll back on the previous one’s climate and renewable energy initiatives, with regional independents taking the place of the Green Party as the junior coalition partner. The Programme commits to delivering 9GW of onshore wind, 8GW solar and at least 5GW of offshore wind by 2030, which will be supported by essential upgrades to the grid. Efforts will be made to fast-track new developments with the publication of the Designated Maritime Area Plans and new Planning Act.

Addressing the infrastructure threat to investment

An undersupply of affordable housing and underdeveloped water, transport and energy infrastructure is challenging Ireland’s ability to remain competitive and attract foreign direct investment. In recent months, multinational companies with operations in Ireland have become more vocal on the threat this underinvestment could have on Ireland’s economy if the government doesn’t take action. The Government has committed to publishing a review of the National Development Plan later this year, with a view to using State funds, including the proceeds of the Apple Tax Case and the Infrastructure, Climate and Nature Fund, to support increased capital investment in housing, energy, water, transport and health digitalisation. A new national housing plan will be developed, aiming to build 300,000 new homes by the end of 2030. It is also envisaged that the recent Planning Act will be used to accelerate progress across the entire infrastructure spectrum.