Today, the yearly National Economic Dialogue (NED) is being held at Dublin Castle, attracting government officials, employers, unions, social activists, among others. Though the event is aimed at reviewing the country’s economic state, the surplus in exchequer finances and upcoming general elections could tempt attendees to advocate for budget distributions.
However, changes are noticeable, and attendees should take notice. The Department of Finance, in charge of economic projections, highlighted notable shifts which could act as an opportunity or risk of disrupting incoming investments or magnifying competition. One looming threat is that of escalating subsidies as the EU potentially reacts to attractive investment rewards in key sectors in the US, with larger states likely gaining profits.
The theme of this year’s NED is how Ireland deals with an increasingly volatile world amidst international political and economic tensions due to the pandemic and wars in Europe and Middle East. It’s crucial for Ireland to consider this when planning nationally and when managing its finances.
Given the recent years of emergency-style budgets due to Covid-19 and the cost-of-living crisis, the upcoming autumn package should adopt a more strategic perspective. While this may be politically challenging with general elections looming, it remains a necessary move.
Risks to public finances are evident, warranting the need to allocate funds for future use in two new funds proposed by the government. Everyone needs to understand that the era of significant corporate tax growth may be closing. Therefore, prioritising the use of public resources becomes critical, especially for household welfare support, constructing crucial economic and social infrastructure like homes, schools and hospitals. The era of large-scale budget distributions may soon conclude. The 2025 Budget needs a long-term strategic plan.