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Ireland’s Varadkar will face daunting challenges

Wednesday, December 21, 2022

Significance

Varadkar’s Fine Gael (FG) has been in coalition with Fianna Fail (FF) and the Greens since 2020; they agreed that Varadkar would replace FF leader Micheal Martin as taoiseach two-and-a-half years into the government’s expected five-year term. Varadkar takes over a government that faces acute policy challenges, especially concerning housing.

Impacts

  • The very high concentration of multinationals in Ireland’s growth model leaves its economy acutely vulnerable to external risks.
  • Persistent challenges concerning access to affordable accommodation could fuel emigration and reduce immigration.
  • Grassroots opposition will likely prevent an electoral alliance between FG and FF before the next election.

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