Martin Returns as Irish Premier Amid Trump Economic Risks
(Bloomberg) -- Micheal Martin, leader of Ireland’s Fianna Fail party, was voted in as prime minister on Thursday after an election in November that saw the main incumbent coalition partners return to power.
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Martin’s party gained the most votes in the election and is forming a government with Fine Gael, supported by a number of independent lawmakers. He takes over from Fine Gael’s Simon Harris who held the role since April 2024.
Martin will hold the role of Taoiseach until Nov. 16 2027, when it will then transfer to Fine Gael for the rest of the five-year term as part of a rotating leadership deal. The two parties had been in talks since the vote, which ultimately ended in Martin taking the top job first.
“For this generation of political leaders, the task is to protect Ireland’s strength at a moment of real threat, while also addressing critical social needs,” Martin told parliament after his nomination for the role was approved.
His government’s first challenge will be the potential impact of Donald Trump’s second term in the White House. Trump’s presidency poses a disproportionate risk to the small, open economy that relies heavily on corporate tax receipts from US firms like Apple Inc. The country boasts one of Europe’s only surpluses thanks to that intake.
But those receipts — which hit a record €39 billion ($40.6 billion) last year — are not guaranteed. The receipts are volatile, and cannot be relied on into the future, the finance ministry has warned for several years now. Howard Lutnick, Trump’s pick to lead the Commerce Department, has previously singled out Ireland for criticism, saying it ran a surplus at the US’s expense.
“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,” Martin said.
Fine Gael’s Paschal Donohoe, Eurogroup president and current public expenditure minister, was named as minister for finance this afternoon. Other cabinet appointments include former Taoiseach Simon Harris, who will be minister for foreign affairs and defense, and former minister for finance Jack Chambers who will now be minister for public expenditure.
The cabinet appointments were announced this afternoon after Martin visited Ireland’s president to formally confirm his role.
Martin served as prime minister in the previous government, between 2020 and 2022, under the same rotating Taoiseach arrangement. He oversaw some major challenges in the role, including the Covid pandemic and difficult Brexit negotiations with Ireland’s nearest neighbor, the UK. A political veteran, he also served in the government during the 2008 financial crash that decimated Ireland’s economy.
His appointment comes a day later than expected after a row in parliament on Wednesday over speaking rights for the independent lawmakers who are supporting the incoming government.
Seven non-aligned members who agreed to prop up the government wanted to form a “technical group,” allowing them them speaking time from the opposition benches. Main opposition party Sinn Fein disagreed and refused to allow the nomination process to proceed.
The issue was resolved for the parliament sitting on Thursday and will be examined before the parliament resumes again on Feb. 5.
(Additional details in 3rd, 4th and 5th paragraphs, including quotes from speech, Minister for Finance appointment)
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