concept for the song, which was set in County Clare on Ireland's west coast, involving a sailor in New York looking out over the ocean and reminiscing about being back home in Ireland. Finer's wife Marcia did not like the original seafaring story, and suggested new lyrics regarding a conversation between a couple at Christmas. Finer told NME, "I had written two songs complete with tunes, one had a good tune and crap lyrics, the other had the idea for 'Fairytale' but the tune was poxy, I gave them both to Shane and he gave it a Broadway melody, and there it was". The song's title, the musical structure, and its lyrical theme of a conversation between a couple were in place by the end of 1985, and were described by MacGowan in an interview with Melody Maker in its 1985 Christmas issue: MacGowan had decided to name the song after J. P. Donleavy's 1973 novel A Fairy Tale of New York, which Finer was reading at the time and had left lying around the recording studio. In the same Melody Maker interview, MacGowan expressed regret that the song had not been completed in time to be released for Christmas that year and hinted that the track would appear on an EP that the Pogues were due to record shortly. In January 1986, the group recorded the song during the sessions with Costello that would produce the Poguetry in Motion EP, with bass player Cait O'Riordan singing the female part. Costello suggested naming the song "Christmas Eve in the Drunk Tank", after the song's opening lines, but the band were scornful of Costello's suggestion, with MacGowan pointing out to Costello that a song with such a title was unlikely to be favourably received and played by radio stations. The majority of the lyrics had been written while MacGowan was recovering in a bed in Malmö after being struck down with double pneumonia during a Pogues tour of Scandinavia in late 1985 – he later said, "you get a lot of delirium and stuff, so I got quite a few good images out of that". However, despite several attempts at recording it, the group were unhappy with the results and the song was temporarily put aside, to be returned to at a later date. Guitarist Philip Chevron later said, "It was not quite there. It needed to have a full-on, confident