It was a year that told us much about ourselves. The Moriarty tribunal found that the State had been led for almost six years by a corrupt and charismatic politician who stole indiscriminately from both friend and party and lived a munificent lifestyle by abusing his official position.
And he still has faithful admirers. Charles Haughey may be dead but his legacy lives on.
The tribunal warned the public against concluding that "everyone was at it" in those days. In spite of that, the sheer scale of the Haughey "donations", abuses of the Revenue system, the existence of Ansbacher and other tax-avoidance mechanisms, planning corruption and the murky interface between politics and big business all pointed to an extensive network of white collar crime.
In spite of the findings of various tribunals, however, only one criminal prosecution for corruption - against George Redmond - has succeeded. A charge of perjury was postponed against Mr Haughey on the grounds that he would not get a fair trial; Liam Lawlor was jailed for obstruction; and Ray Burke did time for tax evasion. But neither they nor any of the businessmen who paid for political favours and then lied to tribunals have ever been charged with primary offences.
It would be wrong to conclude these issues have no relevance today. Other inquiries into corrupt practices are continuing. And unless we come to grips with what we know and deal with it robustly, our democracy will be allowed to devalue further.
The response of the business community to Moriarty has been instructive. Even where there was no question of wrongdoing - as in the case of donations to the late Brian Lenihan's medical fund - the great majority of those involved failed to volunteer their co-operation. Such self-serving behaviour sends the wrong signal to society and is damaging to democracy also.
Along with such civic weaknesses, there were positive developments in 2006. The Government greatly expanded its overseas aid programme. The public continued to contribute generously to domestic and other charities. Welfare payments to the elderly and the underprivileged rose substantially. On top of that, the economy continued to grow at about 5 per cent and the Exchequer enjoyed surplus revenues.
The influx of migrant workers, particularly from Eastern Europe, continued. And while there were incidents of racial intolerance, these immigrants were generally made to feel both valued and welcome. The same could not be said about some indigenous groupings. Widespread violence broke out on the streets of Dublin when Northern unionists came to stage a "Love Ulster" parade. They were attacked and forced to withdraw before the rioters rounded on members of the Garda Síochána.
And, at the close of the year, when Mayo farmer Pádraig Nally was found not guilty of the manslaughter of a Traveller, there were displays of satisfaction, bordering on triumphalism, from members of the settled community.
It was a year of uncertainty, with warnings of an economic slowdown, of a fall in house prices, of climate change and global warming. Fine Gael and the Labour Party offered an alternative government. Michael McDowell took over as Tánaiste and leader of the Progressive Democrats from Mary Harney. And, in the North, the prospect of a power-sharing Executive involving the DUP and Sinn Féin took slow and faltering shape.
By mid-summer, Enda Kenny and Pat Rabbitte had secured a slight lead in the opinion polls over Fianna Fáil and the Progressive Democrats for their alternative government project. But it was soft support, in a mid-term political climate where four-out-of-ten voters believed a change of government would make no difference to the way the country was being run.
When the possibility of an early election emerged in the autumn, after Taoiseach Bertie Ahern was challenged over money he had received while minister for finance in the early 1990s, voters reassessed their position. Nearly two-thirds believed Mr Ahern had been wrong to take money from friends and businessmen, but they sympathised with his personal circumstances and they worried about the consequences of a change in government.
Fine Gael and Labour had failed to offer a convincing and reassuring alternative. The public had empathised with criticisms of ministerial failures, of waste and of inadequate public services. But, without clear alternative policies and determined, coherent leadership, the Opposition parties did not properly connect with the aspirations of voters.
Since then, Fianna Fáil has tried to consolidate its recovery through an excessively generous Budget. And, next month, it will unveil a new national development plan. A clever electoral strategy has left the party in a strong position to form the next government. But that arrangement may not involve the Progressive Democrats for, in spite of a bounce in support, there has been an overall decline in its approval ratings.
But considerable public uncertainty exists. A series of gangland murders has undermined the impact of a generous Budget. A scheme for funding nursing home care could cause problems. There is no knowing what impact the Moriarty report may have on public sentiment as the election approaches.
With six months to go, Mr Kenny and Mr Rabbitte will have to display conviction, vision and determination if they are to seriously challenge the Government.