As economic risks continue to mount, Ireland’s Minister for Public Expenditure and Reform has urged caution in light of potential geopolitical tensions, and the ongoing fallout from recent monetary policy tightening. Speaking to a Dáil Committee, he expressed his concern that Ireland’s significant corporation tax profits could be too reliant on the recent boom, and pointed to the potential for a deficit of €1.8bn. Despite being optimistic about Ireland’s growth, which will see employment exceed previous highs, he believes that this growth will slow in the near future due to an ageing population. Despite this, the Government is taking steps to bolster its fiscal resilience via measures such as phasing out reduced tax rates and transferring €6bn to a National Reserve Fund.
