The re-election of the Coalition Government followed the most carefully orchestrated and dishonest political campaign of recent years. It created a sour taste for the electorate because the economic messages delivered before and after the event were very different. And this may have significant long-term repercussions for Fianna Fáil.
In preparation for the election, the Minister for Finance, Mr McCreevy, announced in January that the Government's finances were "in a healthy position", even though taxes were falling and public spending was running at 23 per cent. The Cabinet went on to announce major initiatives for the health services and to seek tenders for a Dublin Metro as part of a huge public transport investment programme.
Pandering to conservative voters, the Taoiseach, Mr Ahern, held a referendum in March to remove the threat of suicide as grounds for abortion. But the initiative was defeated by 50.42 to 49.58 per cent.
By the time of the election in May, economic storm clouds had gathered. Independent agencies warned about excessive State spending. Buoyed up by election promises, Fianna Fáil hoped for a Dáil majority. Fine Gael and the Labour Party failed to offer a clear alternative and voters drifted towards the Green Party, Sinn Féin and Independents. Then the president of the Progressive Democrats, Mr Michael McDowell, warned the public of the dangers posed by a single-party, Fianna Fáil government. And he attacked the Taoiseach's grandiose, "Ceausescu-era project", at Stadium Ireland. The intervention lifted his party's profile and Fianna Fáil's chance of an overall majority disappeared. When the votes were counted, both of the governing parties gained seats while Michael Noonan's leadership of Fine Gael and Ruairí Quinn's leadership of the Labour Party were fatally undermined. They eventually made way for Enda Kenny and Pat Rabbitte.
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Within weeks of the election, Government economic programmes were thrown into reverse. Figures for May had shown spending rising by 27 per cent, with tax receipts 16 per cent down on forecasts. Mr McCreevy demanded an immediate cut of €100 million. The Minister followed that up in November by slash-and-burn estimates which did the opposite to what his officials had recommended. He cut capital spending and allowed current expenditure to rise.
Then, in the Budget, he opted to raise direct and indirect taxes rather than increase borrowing, thereby adding to an already high inflation rate. The knock-on effects will slow economic recovery and raise unemployment levels. A new national wage agreement has been made more problematical. In terms of prudent economic management, it has been a shambles.
The growing economic gloom was reflected elsewhere. House prices accelerated beyond the reach of an increasing number of young couples. A 15 per cent annual rise brought warnings to lending agencies from the Central Bank, but with no apparent effect. Inflation was double the European average.
The launch of the euro in January touched Irish people in an immediate way and underlined our involvement in the greatest political experiment of modern times. By the end of the year, ten new states had been accepted for EU membership. And talks were continuing in Brussels, with inadequate Government input, on the political structure, functions and authority of this emerging superpower. In between, the electorate endorsed the Nice Treaty - on the second asking - by a margin of almost two to one.
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Northern Ireland institutions were again suspended following the arrest of persons charged with spying for the IRA at Stormont. Developments took place against the backdrop of a loyalist paramilitary feud and the outbreak of sectarian violence at Ardoyne's Holy Cross school and between inner-city communities in Belfast. The prospects for a reinstatement of the Executive and Assembly in advance of scheduled May elections appear to be fading, arising from recent reports that the IRA continued to recruit members and purchase arms.
Child sexual abuse by Catholic clerics generated public outrage when it emerged that complaints had not been acted upon by bishops and that offenders had been protected. Bishop Brendan Comiskey of Ferns was forced to resign in April. As demands for an official inquiry grew, the bishops met in emergency session and agreed to supply "information they considered necessary" to the authorities. They also decided to establish an internal commission, headed by Judge Gillian Hussey. Pressure on Cardinal Connell to stand down because of his handling of sex-abuse cases was followed in the autumn by a Government decision to establish a formal State investigation. The Hussey commission resigned.
The year drew to an end in the same downbeat vein as it began, with a number of tribunals grinding out the shabby details of corruption and malpractice at the interface between business and politics. The behaviour of members of the Garda in Donegal was under scrutiny in connection with the McBrearty affair. And the Minister for Justice pressed ahead with plans to establish a Garda Inspectorate with the powers of an Ombudsman.
There is, as Fianna Fáil noted during the election campaign, a great deal left to do. And the performance of the new Government has yet to impress.