Post-2008 Irish economic downturn

An initial slowdown in economic growth amid the international 2008 financial crisis greatly intensified in late 2008 and the country fell into recession for the first time since the 1980s.

The Irish Stock Exchange (ISEQ) general index, which reached a peak of 10,000 points briefly in April 2007, fell to 1,987 points—a 14-year low—on 24 February 2009 (the last time it was under 2,000 being mid-1995).

[10] With the banks "guaranteed",[11] and the National Asset Management Agency (NAMA) established[12] on the evening of 21 November 2010, then Taoiseach Brian Cowen confirmed on live television that the EU/ECB/IMF troika would be involving itself in Ireland's financial affairs.

[37] They gained about 24% of the vote in the June 2009 local elections and continued to languish as the crisis intensified during the remainder of the year, reaching a new low of 17% support in September 2009.

The Government announced that an election would take place in Spring 2011 but the intended date had to be brought forward to 25 February 2011 following a widely criticised cabinet reshuffle.

[39] The budget, labelled "the toughest in many years",[40] included a number of controversial measures such as a proposed income levy which was eventually restructured,[41] and the withdrawal of previously promised HPV vaccines for schoolgirls.

[42][43][44][45] Other results of the budget included a new income levy being imposed on all workers above a specified threshold and the closure of a number of military barracks near the border with Northern Ireland.

A series of demonstrations ensued amongst teachers and farmers,[51][52][53][54][55][56] whilst on 22 October 2008, at least 25,000 pensioners and students descended in solidarity on the Irish parliament at Leinster House, Kildare Street, Dublin.

[62] Independent TD Finian McGrath then threatened to withdraw his support for the government unless the plan to remove the overs 70s automatic right to a medical card was withdrawn completely.

[63] Taoiseach Brian Cowen postponed a planned trip to China, sending Minister for Education and Science Batt O'Keeffe ahead to lead the delegation.

Despite the bank guarantee in September, by December 2008 the American ambassador was reporting to Washington that no clear plan was in place, after an interview with John McCarthy of the Irish Department of Finance and two other officials.

[84] In April 2009, the government proposed a National Asset Management Agency (NAMA) to take over large loans from the banks, enabling them to return to normal liquidity to assist in the economic recovery.

The costs of the bank rescues, NAMA and government deficits over the period look set to push Irish National Debt up to a ratio of 125% of GDP by 2015.

In April 2010, following a marked increase in Irish 2-year bond yields, Ireland's NTMA state debt agency said that it had "no major refinancing obligations" in 2010.

[106] On 16 November 2011, thousands of students, their parents and families, descended on Dublin from around the country and marched on Government Buildings amid concerns about the reintroduction of third-level fees.

[109] At around 16:00 on 29 November 2011, three student union presidents (of Galway-Mayo Institute of Technology, University College Cork and IT Carlow) under the leadership of Union of Students in Ireland (USI) President Gary Redmond occupied a room at Department of Social Protection on Dublin's Store Street as part of a continued effort to have the Labour Party clarify its position on tuition fees.

[110] Nine students, also seeking clarification on the government's view on third-level fees, participated in a peaceful sit-down protest by occupying the constituency office of Fine Gael TD and former mayor Brian Walsh in Bohermore, Galway, around midday on 30 November 2011.

On 15 November 2011, Willie Penrose resigned as Minister of State for Housing and Planning due to his opposition to the Government's decision to close the army barracks in Mullingar.

[138] Tommy Broughan TD was expelled from the Labour Party on 1 December 2011 after voting to reject a government amendment to extend the bank guarantee for another year.

[147] While attending a buffet at a Letterkenny hotel on 24 February 2012, Transport Minister Leo Varadkar was heckled and booed by local residents who repeatedly shouted "Shame on you" at him.

[148][149] On 25 February 2012, demonstrators protesting against the downgrading of schools in Bunbeg, County Donegal, marched on the office of their local TD, Fine Gael Junior Minister Dinny McGinley.

[152][153] The previous evening, Justice minister Alan Shatter was involved in controversy after telling those who objected to the government's Household Charge to "get a life", remarks made on his way into the Fine Gael annual conference at the Convention Centre.

On the night of 6–7 February 2013, the Irish Bank Resolution Corporation (IBRC) was dramatically liquidated after the Fine Gael/Labour coalition passed emergency overnight legislation[164] through the Oireachtas while President Michael D. Higgins was flown home from the three-day official visit to Italy upon which he had embarked that very morning.

[166] Hall's original argument before the High Court was that the payment of the €31 billion in promissory notes in respect of the now defunct Anglo Irish Bank was illegal as their issuing in 2010 was not approved by a Dáil vote.

President Michael D. Higgins rushed home from his visit to Rome and signed the Irish Bank Resolution Corporation Bill 2013 into law at Áras an Uachtaráin early on 7 February 2013.

The range of opposition TDs critical of it included Joe Higgins, Catherine Murphy, Richard Boyd Barrett, Luke 'Ming' Flanagan, Mick Wallace, Thomas Pringle and Mattie McGrath.

He suggested that Noonan withdraw the bill and return to the Dáil "before the courts open for business in the morning, with the minimal legislation needed to protect state assets.

[171] The 8 February edition of The Irish Times contained a section dedicated to the issue, which was described as resembling "a press release from the Department of Finance".

[175] Taoiseach Enda Kenny gave an address to mark this official end, in which he said the country was moving in the right direction and claimed the economy was starting to recover.

[176] Commentators, including Gene Kerrigan and Vincent Browne, questioned its significance to the Irish economy, and many viewed it as a cosmetic public relations exercise.