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The Fine Gael - Labour coalition collapses. Budget cuts are the main election issue. The new Progressive Democrat party wins 14 seats but Fianna Fail still return to power. Charles Haughey becomes Taoiseach by one Dail vote. Tony Gregory + Bertie Ahern. Garret FitzGerald resigns as leader of Fine Gael. He is replaced by Alan Dukes. In Britain, Margaret Thatcher is re-elected for a record-breaking third successive term. 1987 is also the year of 'Black Monday'. World financial markets suffer huge losses. In New York, share values fall 22% in one day. Eurovision Song Contest: Johnny Logan wins with 'Hold Me Now'. He is the first person ever to win two Eurovisions. A hard-hitting Budget closes several State agencies. 1,000 jobs are threatened at B & I Line. Hospital closures and the prospect of 2,000 job losses provoke an angry response from health workers. In Antarctica, scientists discover a huge hole in the ozone layer. After an illegal border incursion at Clontibret the previous year, Peter Robinson of the DUP pays a brief visit to the Republic's jails. The 'Irangate' and 'Contragate' revelations put President Reagan under pressure.The man at the centre of the investigation becomes a new American hero: his name is Oliver North. In the European Championship qualifying games, Ireland beat Scotland 1-0. Under Jack Charlton's management, Ireland qualify for a major Finals for the first time ever. Loughgall: as an IRA unit attacks an RUC base, British security forces launch an ambush. Eight IRA men and an innocent civilian are killed. After nineteen reported cases of AIDS in Ireland, the government launches an awareness campaign. 1987 is a remarkable year for cyclist Stephen Roche. He wins the Giro d'Italia and the World Championship. He is also the first Irish winner of the Tour de France. A 'Gay Byrne Radio Show' experiment sends Gerry Ryan and a team of volunteers into the wild. Did these desperate 'survivors' really kill a lamb? The 'Lambo' story is later discredited. Enniskillen: the IRA explodes a 'no warning' bomb at a Remembrance Day ceremony. 11 people die, 63 people are injured. The US authorities bring in strict new controls, but the influx of Irish immigrants continues. 100,000 Irish 'illegals' now live in America. Playlist: New Order: True Faith Johnny Logan: Hold Me Now Curiosity Killed The Cat: Down To Earth Daniel O'Donnell/Dana: Country Girl MicroDisney: Town To Town Crowded House: Don't Dream It's Over U2 - I Still Haven't Found What I'm Looking For Marrs: Pump Up The Volume Rick Astley: Never Going To Give You Up Pogues: Fairytale Of New York Wet Wet Wet: Wishing I Was Luck