Memo to markets: SF is not Syriza and Ireland is not Greece

Reported today on Irish Examiner

Memo to markets: SF is not Syriza and Ireland is not Greece

Memo to markets: SF is not Syriza and Ireland is not Greece It is still hard to gauge the possible economic implications of the momentous weekend. We have no idea what the complexion of the future government will look like - that is assuming a government can be formed and that a very early election can be avoided.A Sinn Féin-Fianna Fáil coalition looks the most obvious and workable solution at this juncture. It seems clear that Sinn Féin as the party that gained most votes cannot and should not be prevented from entering government.

The process of government formation will commence over the coming days, and while the manifestos of those involved will give guidance on what any programme for government might look like, all parties will have to realise that compromises will have to be made and that not all of the promises made to the electorate will be delivered upon.Given how unforgiving the Irish electorate has shown itself to be, that will be a political challenge for Sinn Féin in particular.There has been some strong reaction to the possibility of Sinn Féin in government, but I think it is important to bear in mind that this is not Syriza back in 2014. It took over a Greek economy in deep crisis and made some pretty mad policy suggestions which, luckily for Greece, it did not get to implement in the main.Sinn Féin and whoever accompanies the party would be taking over an economy that is growing quite strongly, which is close to full employment, and has a modest budget surplus.However, Ireland still has a dangerously high level of government debt. Careful management of the public finances is essential.

In its manifesto, Sinn Fein committed to an additional €12bn in day-to-day spending on public service