[3] The general election was caused by the loss of support of the Independent Teachta Dála (TD) Tony Gregory and the Workers' Party for the Fianna Fáil government.

This was due to the government introducing substantial budget cuts, which the left-wing TDs would not support.

Fine Gael and the Labour Party formed the 19th government of Ireland, a majority coalition.

A programme for government was quickly drawn up and Garret FitzGerald of Fine Gael became Taoiseach for the second time.

The poor showing for Fianna Fáil resulted in a leadership challenge to Charles Haughey by his opponents within the party.