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Link to original content: https://finance.yahoo.com/news/ireland-ruling-parties-set-hold-173703507.html
Ireland’s Ruling Parties Set to Keep Power After Tight Vote

Ireland’s Ruling Parties Set to Keep Power After Tight Vote

(Bloomberg) -- Ireland is heading for a return of the coalition government led by Prime Minister Simon Harris’s Fine Gael party and Fianna Fail, as voters bucked a recent international trend of ousting incumbent parties.

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With more than two thirds of the results announced, Fianna Fail and Fine Gael were together on track to get more than 80 seats. They need 88 for a majority in the 174-seat Dail or parliament, so a deal with a smaller party or independent lawmakers would likely get them over the line. Both have ruled out working with Sinn Fein, which was expected to win close to 40 seats.

The final standings are unlikely to be clear until Monday or later.

The premier called the election early — it wasn’t due until March — to try to take advantage of a surge in the polls since he became Taoiseach in April. What the media dubbed the “Harris hop” didn’t survive a gaffe-ridden campaign, and it was Micheal Martin’s Fianna Fail that jumped ahead in the popular vote and potentially in total seats. That could give him the upper hand in coalition talks.

But the bigger picture is that the two parties that have dominated Irish politics since the state was founded 100 years ago have likely been returned by voters. In Fine Gael’s case, it’s possible the party will have been in power for almost two decades by the time of the next election.

While Harris’s Fine Gael had a significant poll lead ahead of the campaign, much of the focus was on whether growing concerns about rising immigration — and the pressure it put on housing supply and public services — would hurt the government, as happened in recent elections in the US, UK and parts of Europe.

In the event, the threat posed by independents didn’t materialize, or at least not at the level that would radically shape the makeup of the parliament.

The spending power available to the government, underscored by a giveaway budget in October, was likely a key reason why. Ireland enjoys a budget surplus that is rare among European nations, driven by tax receipts from US firms including Apple Inc. that have made the country their regional headquarters. Management of Ireland’s billions was front and center in the campaign, with parties competing on promises to fix infrastructure and build houses.

“They’re able to make these promises because Ireland at the moment is in a good position fiscally,” said Lisa Keenan, political science assistant professor at Trinity College Dublin. “There’s a significant pot of money there for the government to say that it’s going to spend.”