The Irish Business and Employers Confederation (Ibec) argues that the government has restricted ability to provide a generous budget this year due to already-present spending commitments and self-imposed financial regulations. The group, which published its pre-budget recommendations on Wednesday, warns that Ireland’s ability to attract foreign direct investment is under threat because of changing political priorities at home and abroad.
Increasing protectionism within UK and US markets has escalated trade uncertainties and intensified the competition for investment, according to Ibec. The group believes that the geopolitical shift towards supportive policies for specific industries over the laissez-faire approach seen in the past four decades is transforming the economic landscape.
Setting this context, Ibec is urging the Coalition to focus on enhancing competitiveness in the 2025 Budget. To support lower-income employees and manage the growth in weekly labour costs, Ibec proposes a PRSI rebate for employers. Moreover, it is advocating for the revival of a “better regulation unit” within the Taoiseach’s Department to scrutinize and lessen administrative impediments businesses face under new regulations.
Discussing this issue on Wednesday, Ibec’s leading economist, Gerard Brady, raised concerns about inadequate coordination and consistency among government departments when implementing fresh rules that influence businesses. Expressing his perspective on the budgetary situation, Brady maintained that the fiscal wiggle room for the Coalition for the upcoming 2025 Budget is minimal. He explained that approximately 50% of available resources have been earmarked, leaving the Finance Minister Jack Chambers and Public Expenditure Minister Paschal Donohoe with about €4.5 billion as additional spending for the following year, provided they adhere to the existing budgetary parameters.
Mr Brady underscored that the notion of bountiful funds being available to the government didn’t reflect reality. He cautioned that with the current fiscal constraints, it would be a challenge to maintain the status quo, let alone introduce any substantial changes to the budget.