First term (1997–2002) Early issues in 1997
Bill Clinton in 2000 Ahern's first government saw some teething problems during its first six months. Firstly, Ahern tried to nominate
David Andrews as
Minister for Defence and as a
Minister of State at the
Department of Foreign Affairs. This was unconstitutional as one Minister cannot be subordinate to another. Secondly, in July,
Charles Haughey gave evidence to the
McCracken Tribunal on corruption confirming that he had received IR£1.3 million (€1.7 million) in gifts from businessman
Ben Dunne, which he had previously denied. This damaged Haughey's reputation more than the government's. Thirdly, earlier allegations resurfaced about Ahern's Foreign Minister,
Ray Burke. Burke eventually admitted to receiving IR£30,000 in a corrupt payment and resigned from office. Arising from those two matters, the government established the
Moriarty Tribunal and the
Flood Tribunal. One of the high points of the first six months was the renewal of the
Provisional IRA ceasefire, which paved the way for resumed negotiations in
Northern Ireland.
Peace process A significant achievement of Ahern's first term was his part in the negotiation of the
Good Friday Agreement, in which the British and Irish Governments and most Northern Irish political parties established an "exclusively peaceful and democratic" framework for power-sharing in
Northern Ireland. The agreement was signed on 10 April 1998. It was seen as something special, because not only was it endorsed by the political parties, it was endorsed also by the British and Irish governments and the people of Ireland. The agreement, the ceasefires and the political structures it created have encouraged peace. The negotiations also led to his friendship with the former
British Prime Minister Tony Blair. On 26 November 1998, Blair became the first Prime Minister of the United Kingdom to address the
Oireachtas. On 24 September 2003, Ahern and Blair were jointly awarded the
Thomas J. Dodd Prize in International Justice and Human Rights for their work on the Good Friday Agreement to promote peace between Britain and Northern Ireland. On 22 May 2008, Ahern and Blair were both awarded honorary doctorates by
Queen's University Belfast in recognition of their roles in the peace process. University Chancellor
George Mitchell praised Mr Ahern as "a man of peace and a builder of bridges". Speaking at the 1916 Easter Rising commemoration at
Arbour Hill in Dublin, in 1998, Ahern said
Economy Ahern's first term in office had been a period of high economic growth in Ireland, known as the
Celtic Tiger. This was followed by a property boom which led to the economic crisis of 2008–2010 and culminated in the state requiring an
IMF and
EU bailout in 2010. In the first term increased prosperity and a better standard of living were the main results of the Celtic Tiger economy. There were significant deficits in the provision of infrastructure in the health and transport sectors. The good economic conditions allowed Finance Minister
Charlie McCreevy, to deliver several generous budgets. The 1998 and 1999 Finance Acts included special tax incentives targeted at the area covered by the pilot Rural Renewal Scheme for the Upper Shannon Area. This scheme was later subject to criticism by the Heritage Council for being introduced without a 'Baseline Audit' to inform the level and scale of development to be supported through the scheme, not identifying priority areas suitable for development, not providing any strategic protection for designated areas including the corridor of the
River Shannon, nor promoting the use of sustainable design and building materials in any new build or refurbishment project supported by the scheme. This growth changed in 2008, with a difficult budget for 2008, brought forward by 2 months, as Ireland entered recession, with unemployment expected to rise 5.6% in 2008 and the construction industry in decline. Economic growth in 2008, had also slowed to its lowest levels in over a decade.
2002 general election The
28th Dáil served its full term, becoming the second-longest Dáil to complete a full term. The coalition of Fianna Fáil and Progressive Democrats was re-elected with an increased majority in the
2002 general election on 17 May of that year. Fianna Fáil had hoped for a majority, but ultimately came up three seats short of the 84 required. Fine Gael was decimated, losing much of its front bench. The coalition Government returned to power, comprising Fianna Fáil and the eight
Progressive Democrats TDs. It was the first time a Government had been re-elected since
Jack Lynch's in 1969.
Second term (2002–2007) George W. Bush,
UK Prime Minister Tony Blair, and Ahern at
Hillsborough Castle in Northern Ireland on 8 April 2003. Controversy arose when it was announced shortly afterwards that financial cutbacks were needed due to the drop in the international and Irish economies. This contradicted Fianna Fáil's promise during the election campaign when Finance Minister McCreevy was quoted several times saying that "no cutbacks, secret or otherwise, were planned". The government was accused of lying to the public, particularly concerning the
war in Iraq (see below). The Government's rating fell badly in opinion polls and Ahern's popularity dropped to its minimum. Another issue in the government's agenda for 2002,
second Nice Treaty referendum, this was a second attempt to pass the
Treaty of Nice. During 2003, the government was subject to more controversy when it became public that US military aircraft, carrying large numbers of troops, were refuelling at
Shannon Airport, despite widespread opposition to the
2003 invasion of Iraq. Ireland's policy since the foundation of the State has been to be a neutral party in any conflict. The Government had maintained that troops had not used Shannon but when this was disproved, it then claimed that such permission had been available for 50 years. The drop in opinion poll ratings for Ahern and his government after the 2002 election, was followed in 2004, by Fianna Fáil's worst local election results in 80 years.His reputation for inaction in changing cabinet Ministers ended with his long-heralded 2004 Cabinet reshuffle in which he failed to sack
Séamus Brennan from the cabinet. The reshuffle was not as extensive as some had hoped as only three new members entered government. The unpopular phase seemed short-lived as the government rearranged its priorities and the economy grew. A notable law enacted by this government was the ban on smoking in workplaces and enclosed areas in March 2004. Improvements had been made in the transport infrastructure with the launch of the
Luas light rail system in Dublin, many new motorways being built and the break-up of
Aer Rianta, the state-owned Airport Management company.
George W. Bush accepts a bowl of shamrock from Taoiseach Bertie Ahern during a ceremony celebrating St. Patrick's Day in 2005. In November 2004, Ahern celebrated ten years as leader of Fianna Fáil. In April 2006, he became the
second longest serving Taoiseach, after
Éamon de Valera. One of Ahern's achievements in 2004, was his
Presidency of the European Council, during which EU leaders agreed a
European Constitution, there was recovery in
EU-
US relations, the EU formally admitted
10 new members, and selected
José Manuel Barroso as
President of the European Commission. Briefly, it appeared as if Ahern himself might become President of the European Commission, however, he declined in favour of domestic politics. The treaty was subsequently defeated in referendums in the
Netherlands and
France. Ahern's government spent €52 million on the Nedap
Electronic Voting system. This was challenged as being insecure and could have been tampered with to change results. His coalition partners in government, the
Progressive Democrats, said that he had questions to answer as details of an £8,000 (€11,800) payment for speaking engagements, in
Manchester in 1994, emerged. The continued appearance of details of his appearances in
Manchester and the names of those who were present at functions threatened to destabilise his coalition government, especially so when it transpired that one of the businessmen Micheál Wall subsequently sold a house to Ahern. The strains in the coalition eased after Ahern apologised for the second time in the Dáil and agreed to tighten up on ethics legislation. reporting in December 2006, criticised Ahern for having signed blank cheques for the then party leader
Charles Haughey, who misappropriated taxpayers' funds for personal use. The disbursement of funds to
Fianna Fáil and their investigation by the tribunal have raised questions about the involvement of Ahern in the administration of these funds. In May 2007, he became the first Irish leader to address a joint session of the
Parliament of the United Kingdom.
2007 general election Ahern hoped to win a
third general election in 2007. While opinion polls, in April 2007, suggested that this was improbable. Polls in April 2007, showed his coalition of Fianna Fáil and the Progressive Democrats at 35% and 3% respectively against the Fine Gael–Labour Party alternative government figure of 38%. A further poll published 27 April 2007, shows Fianna Fáil and Progressive Democrats at 34% and 3% respectively compared to Fine Gael and Labour at 31% and 10%. A promise by the Labour Party, at their February 2007 party conference of a cut in the basic rate of income tax, paid by 80% of workers, from 20% to 18% created some excitement in political and media circles. Income tax cuts by the Fianna Fáil–Progressive Democrats government had concentrated on the top rate of tax and Labour were able to portray their proposal as progressive to the discomfiture of Fianna Fáil. Ahern received staunch support during the campaign from
Eoghan Harris, writing in the
Sunday Independent. Harris declared that the anti-Ahern campaign was the most sinister manipulation of the Irish media that he had seen in his lifetime and that
Sinn Féin would be the main beneficiaries of a fall in support for Ahern and Fianna Fáil. Harris was
nominated to as a senator by Ahern on 3 August 2007. In April 2007, Ahern sought a dissolution of the Dáil and called an election for 24 May 2007. Unusually, Ahern dissolved the Dáil on a Sunday morning, claiming that
President McAleese's foreign trip that week made it necessary despite the trip having been long-planned. There was speculation that the timing was instead motivated by the commencement of the Mahon Tribunal's Quarryvale module scheduled for that week, particularly Tom Gilmartin's evidence – the hearing thus had to be postponed until after the election was over. Ahern's party received 78 seats a loss of three seats from the 2002 election result. This was regarded as a Fianna Fáil 'victory', as questions about Ahern's finances overshadowed the early part of the election campaign, which threatened to cause huge losses for Ahern's party. His partners in the government, the
Progressive Democrats suffered a reduction in representation from 8 to 2 seats including the loss of their leader.
Third term (2007–2008) in
Davos, January 2004 Following the
general election of 2007 Ahern was elected to a third term as Taoiseach, leading a rainbow coalition of Fianna Fáil, the
Green Party and the
Progressive Democrats, and also supported by several Independent TDs. This was the first Rainbow coalition comprising Fianna Fáil, with all their previous coalitions comprising just one partner. Requiring 83 seats to return the government, Ahern's options were to attempt to govern with the
Progressive Democrats plus two "gene-pool" Independents (
Jackie Healy-Rae and
Beverley Flynn; both former Fianna Fáil members) and one or more of the other three Independents,
Michael Lowry,
Finian McGrath or
Tony Gregory (both left-wing Independents). The other options were an alliance with the
Green Party or the
Labour Party. Fianna Fáil negotiated a programme for government with the Green Party and formed a coalition with the Green Party and the Progressive Democrats, supported by Healy-Rae, Flynn, Lowry and McGrath. Ahern's reputation was damaged by the accusation of cash gifts received that have transmuted to loans from businessmen. His reputation as the Teflon Taoiseach (no allegation of unethical behaviour had stuck to him until September 2006) was damaged. He was criticised in the foreign press as well as in the Irish media. To the surprise of many observers, polls taken during and after the payments' crisis indicated a sharp rise in support for the Ahern government and a corresponding fall in support for the Opposition parties. While 55–64% of the public believed that he was wrong to accept the payments, support for his party rose to 39–42%, while support for the main Opposition parties
Fine Gael and the
Labour Party fell to 20–26% and 10–11%. Two-thirds believed he should not have resigned. The polls provoked complaints from the media. The
Irish Times commented they were a "poor reflection of ourselves". Ahern stated in an interview in the
Village on 22 May 2007, that he intended to retire from politics when he turned 60 years of age. He stated this would mean standing down as Taoiseach before the end of the Dáil term, which would have ended in 2012 at the latest. On 4 July 2007, Ahern stated at a conference in
County Donegal that he did not understand why people sitting on the sidelines, "cribbing and moaning" about the economy, did not commit suicide. These comments came at a time when Ireland's economy was beginning to falter, and with property prices falling by up to 10% as part of the
Irish property bubble. Ahern later accepted responsibility for the overheating of the property sector but took no responsibility for the failings of the
Central Bank of Ireland. In an opinion poll taken in September 2007, subsequent to Ahern's initial two-day appearance at the
Mahon Tribunal, fewer than one-third of voters believed Ahern's accounts of his finances. Opposition parties had previously been muted in their reaction but in September 2007, Labour Party leader
Eamon Gilmore, called for Ahern to resign in light of his appearance at the Mahon Tribunal and on 23 September 2007, Leader of the Opposition
Enda Kenny was heavily critical of the "rambling, incoherent" answers offered by Ahern to the Mahon tribunal in September 2007. Kenny said there was now a situation whereby a witness before a tribunal, testifying under oath, "is continually changing his story". It "create[s] a credibility problem and that's the issue the Taoiseach has got to deal with". On resumption of the
Dáil on 26 September a motion of no confidence in Ahern's government was moved by
Fine Gael leader
Enda Kenny and seconded by the Labour Party, based on Ahern's statements to the
Mahon Tribunal. The Green Party, PDs and Independent TDs who supported the government voted for Ahern in the motion of no confidence. In a three-hour Dáil debate, Ahern was accused of telling "lies" and was called upon to resign. The no-confidence motion was defeated by 81 votes to 76, with all six Green Party TDs, two PDs and four Independents, Finian McGrath, Beverley Flynn, Michael Lowry and Jackie Healy-Rae voting with the Government. In an opinion poll published in November 2007, some three-quarters of voters indicated that they did not believe that Ahern had given a full disclosure about his personal finances to the Mahon Tribunal. The opinion poll also showed more than half of the electorate believing that the whole episode was by then a serious political issue for Ahern. A later opinion poll taken on 22 January 2008, on the issue of Ahern's personal finances and tax liabilities, found that "78% of people do not believe he has given the full picture (up 6%) while just 14% believe he has given the full picture (down 3%)." The
Minister for the Environment and leader of the Green Party, John Gormley said on 22 February 2008, that revelations concerning Ahern at the Mahon Tribunal were distracting from the work of government. Opposition parties on 22 February 2008, branded Ahern's financial affairs as a "national embarrassment", which should prompt his immediate resignation. Grainne Carruth's acceptance as a matter of civil probability that she had lodged sterling sums to Ahern's account at the Drumcondra branch of the Irish Permanent Building Society in the 1990s had reportedly sent shock waves through the ranks of Fianna Fáil. On 27 March 2008, the unease at Ahern's declarations at the Mahon Tribunal, as contradicted by his former secretary at the tribunal, were highlighted when Progressive Democrat coalition partner leader
Mary Harney, traditionally a stern supporter of her former colleague, called on Ahern to make a statement. The disquiet within the coalition was further emphasised when
Green Party leader John Gormley, said that Ahern should clarify the contradiction between his evidence and that of his former secretary Grainne Carruth. An opinion poll published on 25 November 2007, showed that support for Fianna Fáil had dropped by seven per cent, "following the announcement of large pay increases for the government and senior public servants against a backdrop of continuing economic uncertainty and high-profile failures in the health service." On 2 April 2008, Ahern announced his intention to resign as Taoiseach and as leader of Fianna Fáil on 6 May 2008. On 30 April 2008, in
Washington D.C., Ahern became the sixth Irish leader to address the
United States Congress. He is also the sixth person who has addressed both the
UK Parliament and the United States Congress. On 6 May 2008, he performed his last official duty as Taoiseach in opening the Battle of the Boyne visitors centre with the
First Minister of Northern Ireland,
Ian Paisley. ==Political views==