The impact of the crisis on the Irish political system

The international financial crisis manifests itself in Ireland not only as a crisis of the banking
system, but also as a major fiscal crisis, aggravated by years of soft revenue policy and a
housing bubble that has burst spectacularly. The severe drop in economic output results in a
crisis of employment and a definitive end to the ‘Celtic Tiger’ era of rapid growth and nearfull
employment. Although the political system has proven resilient thus far, with
membership of the Euro preventing the catastrophic political crises that affected Latvia and
Iceland, for example, the crisis has revealed significant weaknesses in political system. This
paper considers institutional shortcomings in three arenas through which policies to deal with
the crisis must be managed: the parliamentary system, the public administration, and social
partnership structures.