The answer to the question "what is the greatest Christmas song of all time?" At least IMO.
Some problematic lyrics (admittedly, in character - an unreliable narrator in the voice of the late, great Shane MacGowan, as it were)
But otherwise magically fantastic and a tune routinely recognized by the British public as their holiday favorite (above such chestnuts as Wham's "Last Christmas," for starters)
Written by Shane and his Pogues bandmate Jem Finer over the course of two years (featuring a troubled recording history and a swap of female vocalists from Cait O'Riordan -- who was romantically involved with the band's producer at the time, Elvis Costello, so when Elvis left the building, so did she -- to the late Kirsty MacColl), it's an Irish-style folk ballad that MacGowan explained like this:
"I sat down, opened the sherry, got the peanuts out and pretended it was Christmas. It's even called "A Fairy Tale of New York", it's quite sloppy, more like "A Pair of Brown Eyes" than "Sally MacLennane", but there's also a céilidh bit in the middle which you can definitely dance to. Like a country and Irish ballad, but one you can do a brisk waltz to, especially when you've got about three drinks inside you... But the song itself is quite depressing in the end, it's about these old Irish-American Broadway stars who are sitting round at Christmas talking about whether things are going okay."
Whether apocryphal or not, MacGowan told people that the song came about as the result of a wager between the band and Costello that the group wouldn't ever be able to write a Christmas hit single.
As of December 2023, the song was certified sextuple platinum in the UK and is the most-played Christmas song of the 21st century in Britain. I made a point of playing it on every Christmas radio show I ever hosted or participated in, it's that great and that much a part of the pop firmament.
Shane's original handwritten lyrics below.