Liam Cosgrave

The Fine Gael-Labour Government that took office in the seventies faced many challenges.

The outgoing Fianna Fáil administration had been implicated in a gunrunning scandal that led to some of its members becoming embroiled in the now infamous Arms Trial.

The situation in Northern Ireland was extremely grave, as the IRA and loyalist forces plunged the province into anarchy.

Added to national difficulties, the international oil crisis hit Irish industrial production and led to exchange rate instability.

The Fine Gael-Labour Coalition will be remembered for its attempts to build a power-sharing administration in Northern Ireland through the Sunningdale Agreement.

This Agreement reflected the Fine Gael policy, adopted in September of 1969, of a pluralist approach to the North s problems and respect for all traditions on the island.

Though Sunningdale failed, it marked the beginning of the process of compromise in Northern Ireland, which ultimately led to the signing of the Good Friday Agreement in 1998.

After having campaigned in favour of Ireland' s entry into the EEC in 1972, and leading Fine Gael MEPs into the European People' s Party grouping in the European Parliament, Liam Cosgrave became the first Irish president of the European Council in 1975.

With all of these achievements in mind, most people were surprised that Fianna Fáil won the 1977 General Election.

Back in opposition, Liam Cosgrave retired and Garret FitzGerald became Fine Gael' s new Leader.