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===Final term as Taoiseach (1987–1992)=== {{More citations needed section|date=December 2006}} Following the withdrawal of Labour from government, FitzGerald called a [[1987 Irish general election|general election for February 1987]]. The campaign was dominated by attacks on the government over severe cuts in the budget and the general mismanagement of the economy. Haughey had failed once again to win an overall majority for Fianna Fáil. When it came to electing a Taoiseach in the Dáil Haughey's position was volatile. Independent TD [[Tony Gregory]] voted against Fitzgerald but abstained on Haughey, seeing Haughey as the "lesser of two evils" (the reason for this was Gregory's opposition to the Anglo-Irish agreement as well as his dislike of Garret FitzGerald and Fine Gael). Haughey was elected Taoiseach on the casting vote of the [[Ceann Comhairle]]. Haughey now headed a minority [[Fianna Fáil]] government.{{efn|From 1987 to 1992, Haughey served as [[Minister for Children, Equality, Disability, Integration and Youth|Minister for the Gaeltacht]] from 1987 to 1992 as well as Taoiseach.}} [[Fine Gael]] under leader [[Alan Dukes]], made the unprecedented move, with its [[Tallaght Strategy]], of supporting the government and voting for it when it came to introducing tough economic policies. The national debt had doubled under previous administrations, so the government introduced severe budget cuts in all departments. The taxation system was transformed to encourage enterprise and employment. One of the major schemes put forward, and one which would have enormous economic benefits for the country, was the establishment of the [[International Financial Services Centre, Dublin|International Financial Services Centre]] (IFSC) in [[Dublin]]. In late April 1989, Haughey returned from a trip to [[Japan]], to the news that the government was about to be defeated in a Dáil vote, on a private members' motion regarding the provision of funds for [[HIV/AIDS]] sufferers. The government lost the vote, which was seen as merely embarrassing, but Haughey, buoyed by opinion polls which indicated the possibility of winning an overall majority, called a [[1989 Irish general election|general election for 15 June]]. [[Fianna Fáil]] however ended up losing four seats and the possibility of forming another minority government looked slim. For the first time in history, a nominee for [[Taoiseach]] failed to achieve a majority when a vote was taken in the Dáil, on 29 June 1989.<ref name=IrishTimes27Feb2016a>{{cite news|url=http://www.irishtimes.com/opinion/1989-a-road-map-for-fine-gael-fianna-f%C3%A1il-deal-1.2550069|title=1989 a road map for Fine Gael-Fianna Fáil deal|newspaper=The Irish Times|author=Stephen O'Byrnes|date=27 February 2016|access-date=21 March 2017|archive-date=12 May 2017|archive-url=https://web.archive.org/web/20170512093910/http://www.irishtimes.com/opinion/1989-a-road-map-for-fine-gael-fianna-f%C3%A1il-deal-1.2550069|url-status=live}}</ref> Constitutionally Haughey was obliged to resign, however he refused to, for a short period. He eventually tendered his resignation to President [[Patrick Hillery|Hillery]] and remained as taoiseach, albeit in an acting capacity.<ref name=IrishTimes27Feb2016a/> A full 27 days after the election had taken place a coalition government was formed between Fianna Fáil and the [[Progressive Democrats]]. It was the first time that Fianna Fáil had entered into a coalition, abandoning one of its "core values" in the overwhelming need to form a government.<ref name=rte-obituary/> [[File:Rueda de prensa de Felipe González y el primer ministro de Irlanda. Pool Moncloa. 25 de abril de 1990.jpeg|thumb|Haughey (left) and Spanish Prime Minister [[Felipe González]] (right) in the [[Moncloa Palace]], 1990]] Haughey in 1990 had more difficulties than successes. The first half of the year saw Haughey in a leading role as a European statesman when Ireland held the [[Presidency of the Council of the European Union|presidency of the European Community]], which rotated semi-annually between the member states of the [[European Economic Community]]. Haughey supported [[German reunification]] and during the extraordinary [[List of European Council meetings|Dublin Summit]], which he called for in April, he pressed this viewpoint forward.<ref>{{Cite web|url=http://aei.pitt.edu/1397/1/Dublin_april_1990.pdf|title=The European Council, Dublin, 28 April 1990|access-date=2021-09-07|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304201205/http://aei.pitt.edu/1397/1/Dublin_april_1990.pdf|url-status=live}}</ref><ref>{{cite press release |title=Press corner |url=http://europa.eu/rapid/press-release_DOC-90-1_en.htm?locale=en |publisher=European Commission |access-date=7 September 2021 |date=28 April 1990 |archive-date=11 December 2021 |archive-url=https://web.archive.org/web/20211211221126/https://ec.europa.eu/commission/presscorner/detail/en/DOC_90_1 |url-status=live }}</ref><ref>{{Cite news|last=Scally|first=Derek|title=Germany will 'never forget' Ireland's help|url=https://www.irishtimes.com/news/germany-will-never-forget-ireland-s-help-1.658399|access-date=2021-09-05|newspaper=The Irish Times|date=Apr 29, 2010|archive-date=11 November 2020|archive-url=https://web.archive.org/web/20201111193746/https://www.irishtimes.com/news/germany-will-never-forget-ireland-s-help-1.658399|url-status=live}}</ref><ref>{{cite web |title=Presidency of the Council of the European Union |url=http://ec.europa.eu/ireland/how_the_eu_works/presidency/index_en.htm |publisher=European Commission |access-date=2015-07-08 |url-status=dead |archive-url=https://web.archive.org/web/20150711144901/http://ec.europa.eu/ireland/how_the_eu_works/presidency/index_en.htm |archive-date=11 July 2015 |df=dmy }}</ref> He believed both [[Republic of Ireland|Ireland]] and [[Germany]] were similar in that both countries were divided. During a [[Dáil]] debate on [[German reunification]], Haughey stated "I have expressed a personal view that coming as we do from a country which is also divided many of us would have sympathy with any wish of the people of the two German States for unification".<ref>{{cite web |title=Ceisteanna—Questions Oral Answers – German Reunification – Dáil Éireann (26th Dáil)|date=13 December 1989 |url=https://www.oireachtas.ie/en/debates/debate/dail/1989-12-13/12/ |archive-url=https://web.archive.org/web/20121119004720/http://debates.oireachtas.ie/dail/1989/12/13/00007.asp |archive-date=19 November 2012}}</ref> The [[1990 Irish presidential election|presidential election]] was disappointing for Haughey with Brian Lenihan, the [[Tánaiste]], who was nominated as the party's candidate, being defeated by [[Mary Robinson]]. During the campaign the controversy over the phone calls made to the [[Áras an Uachtaráin]] in 1982, urging the then President not to dissolve the Dáil resurfaced. Lenihan was accused of calling and attempting to influence the president, who as [[head of state]] is above politics. The Progressive Democrats threatened to pull out of the coalition and support a Fine Gael no-confidence motion unless Haughey forced Lenihan out. Haughey tried to force Lenihan to resign and sacked him when he refused to do so. Lenihan's dismissal damaged Haughey's standing in the Fianna Fáil organisation. Haughey's grip on political power began to slip in the autumn of 1991. There was a series of resignations by chairmen of semi-state companies, followed by an open declaration by [[Minister for Finance (Ireland)|Minister for Finance]] [[Albert Reynolds]], that he had every intention of standing for the party leadership if Haughey resigned. Following a heated parliamentary party meeting, [[Seán Power (politician)|Seán Power]], one of Reynolds's supporters, put down a motion of no-confidence in Haughey. Reynolds and his supporters were sacked from the government by Haughey, who went on to win the no-confidence motion by 55 votes to 22. [[File:Plaque at former Hells Kitchen pub Castlerea (2018).jpg|thumb|Plaque at the [[Castlerea Railway Museum]] in [[Castlerea]] ]] Haughey's victory was short-lived, as a series of political errors would lead to his demise as [[Taoiseach]]. Controversy erupted over the attempted appointment of [[Jim McDaid]] as Minister for Defence, which saw him withdraw his nomination under pressure from O'Malley. Worse was to follow when [[Seán Doherty (Roscommon politician)|Seán Doherty]], who as [[Minister for Justice (Ireland)|Minister for Justice]] had taken the blame for the [[Irish phone tapping scandal (1983)|phone-tapping scandal]] of the early 1980s, went on [[RTÉ]] television, and after ten years of insisting that Haughey knew nothing of the tapping, claimed that Haughey had known and authorised it.<ref name=rte-obituary/> Haughey denied this, but the [[Progressive Democrats]] members of the government stated that they could no longer continue in government with Haughey as Taoiseach. Haughey told Desmond O'Malley, the Progressive Democrats leader, that he intended to stand down shortly, but wanted to choose his own time of departure. O'Malley agreed to this and the government continued. On 30 January 1992, Haughey resigned as leader of Fianna Fáil at a parliamentary party meeting. He remained as [[Taoiseach]] until 11 February 1992, when he was succeeded by the former Finance Minister, [[Albert Reynolds]]. During his final address to the Dáil, he quoted [[Othello]], saying "I have done the state some service, they know it, no more of that". Haughey then returned to the backbenches before retiring from politics at the [[1992 Irish general election|1992 general election]]. His son, [[Seán Haughey]], was elected at the election that followed, in his father's old constituency. Seán Haughey was appointed as a [[Minister of State at the Department of Education|Minister of State at the Department of Education and Science]] in December 2006.
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