ABSTRACT
The first Inter-Party government had defied most of the predictions not only by surviving for over three years but also by policy innovation in a number of areas. The second Inter-Party government, by contrast, was not a success. It was characterised by a macro-economic policy set primarily by the very conservative Fine Gael Minister for Finance, Gerard Sweetman, that followed the principles of Sean MacEntee’s austerity budget of 1952. A series of cuts in public expenditure in 1956 heightened tensions within the government. The initiative during the campaign lay entirely with the opposition, given that Labour in particular was in no mood to defend the government’s record and indeed was probably more relieved than disappointed at the government’s collapse. Fianna Fail was able to contrast its own proclaimed competence and vision in running the economy with the coalition’s dismal record, without needing to put forward too many specific policies.
