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Subject

Ireland's new government.

Significance

On May 6, the leader of the Fine Gael party, Enda Kenny, was re-elected Ireland's prime minister. He leads a minority coalition government consisting of Fine Gael and independents, on the basis of a 'confidence and supply' agreement with Fianna Fail, the largest opposition party.

Impacts

The government's minority in the Seanad, the upper house of the Irish parliament, could lead to delays in policy-making.

Strong economic growth and falling unemployment may increase the government's financial scope of action.

A 'Brexit' could cause significant economic difficulties for Ireland and render it more isolated in the EU.

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