Ireland: Economic Crisis Brings Calls for National Unity Government

Seven billion euros were injected into two of Ireland's major banks yesterday as part of a desperate plan not only to rescue the country's financial institutions but to save the republic's entire economy.

Despite the Irish cabinet approving the aid plan for Allied Irish and the Bank of Ireland, shares in the two lending institutions actually fell yesterday, demonstrating once again a profound lack of economic confidence throughout the state.

On the same day, around 1,200 workers were in danger of losing their jobs at an aircraft maintenance firm beside Dublin airport while low-cost airline Ryanair confirmed cuts in both posts and flight destinations from Ireland to other parts of Europe.

Out of all the countries within the eurozone, Ireland is perhaps the most vulnerable to the continuing global economic tremors.

The republic's economy, even in the good times, has been based on a faultline: reliance on international foreign investment.

In the recent past Ireland drew tremendous energy from beneath the fissure. Now it sits directly above an earthquake zone.

The story of Ireland over the last decade and a half has been a journey from a nation whose narrative was dominated by the bomb to one dominated by the boom of the Celtic tiger.

As the ground beneath that nation's feet starts to shake, that story has moved once more, this time from boom to bust.

The sense of crisis in Ireland is so intense at present that some voices in the Dublin media and now in the Irish parliament are calling for a dramatic move to help stabilise the country. There are calls, albeit from a fringe minority (so far), for Brian Cowen to invite the main opposition parties to join him in a national emergency government.

This would entail bringing Fianna Fáil's historic adversaries in Fine Gael into a unity government, something the rank and file of both parties would undoubtedly find unpalatable.

One of those calling for such a government is a member of Ireland's second chamber, the Seanad, who has himself crisscrossed the old traditional divides of left/right republican/nationalist over the last four decades.

Independent senator Eoghan Harris has been a spin doctor and political adviser to an eclectic band of parties ranging from the hard-left Workers party all the way across to Fianna Fáil under Bertie Ahern.

In between, his media strategy helped elect the first female and liberal president of Ireland, Mary Robinson, way back in 1991.

He even crossed the border to come to David Trimble's aid when the then Ulster Unionist leader tried to sell the Good Friday agreement to a sceptical unionist electorate.

Harris argues at present that the republic's plight is akin to a nation at war and that in wars parties unite to form national coalitions.

At first glance the concept looks fanciful. The main opposition bloc – Fine Gael and labor – may be tempted to allow Cowen and his government to twist in the wind rather than rush to help them.

labor in particular has been keen to point out that since Fianna Fáil have led three successive governments since June 1997 they are in large part responsible for the culture of lax credit and greedy speculation that lies at the heart of the Irish economic malaise.

The key question, however, is will the Irish electorate necessarily reward the opposition for sniping from the sidelines?

There is certainly no dearth of talent within the front benches of the two opposition parties. Labour's Eamon Gilmore is one of the greatest political orators of his generation and has the ability to zero in on the most neuralgic issues affecting ordinary people.

Meanwhile, in Richard Bruton, their party's economics spokesman, Fine Gael has one of the most talented and able politicians in the Dail at present. Would, for instance, Fine Gael gain more kudos as a natural party of government with Bruton helping to shape the economic rescue compared to being outside the decision-making process?

Conversely would Cowen be perceived as a statesman putting country before party if he invited the two main forces on the other side of the Dail chamber to join him in an emergency government for a limited time frame?

Cynics, and in Dublin's media class they are legion, will scoff at the notion of national government. But as Harris has pointed out these are exceptional times. And in such times exceptional measures may be needed to salvage the republic from complete economic meltdown.