Latest news with #NationalEconomicDialogue
The Journal
2 hours ago
- Business
- The Journal
The Irish Congress of Trade Unions wants the government to move away from corporation tax
THE IRISH CONGRESS of Trade Unions has called on the Government to end the 'over-dependence' on corporation tax receipts ahead of the today's National Economic Dialogue. The National Economic Dialogue is taking place at Dublin Castle this morning. The congress (ICTU), which represents over 800,000 workers across Ireland, said that the country's current economic model is 'unsustainable' and called on the Government to use Budget 2026 to put the economy on a 'firmer footing'. Last week, the Irish Fiscal Advisory Council echoed similar sentiments. Launching its Fiscal Assessment Report, the Council's chair warned of the current volatility of Ireland's longtime reliance on corporation tax as uncertainty arises from mooted tariffs from the US and further trade tensions. The ICTU urged Cabinet to build a new economic model that can deliver 'good jobs, improved living standards, and sustained growth'. Advertisement Its General Secretary Owen Reidy said that the government needs to end its reliance on the 'sugar rush' of corporation tax windfalls and start serious planning for the longer term. Corporation tax is likely to be higher than forecast over the rest of the year, IFAC's latest report found. This has been put down to BEPS reforms that mean groups with a turnover of over €750m will pay a 15% minimum rate of tax in every jurisdiction in which they operate. However, there is further uncertainty regarding the future of multinationals in Ireland. The IFAC has been unable to construct a medium-term forecast due to the department's failure to turn over spending profiles, as well as the government's refusal to commit to a fiscal rule, its chair Seamus Coffey told reporters last week. He said that this highlights that there is no medium-term plan or strategy apparent. Reidy today said that Ireland is facing 'significant wage inequality' alongside 'major infrastructure deficits'. 'Budget 2026 must mark a turning point by giving certainty and security to workers across Ireland. That means good jobs that pay well, a decent standard of living, as well as stronger public services. But it should also mean a shift in our economic model. 'In the coming weeks, the Irish Congress of Trade Unions will be setting out how we believe that can be achieved through a New Economic Model, and today at the National Economic Dialogue we will be bringing that message to Ministers,' he said. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Times
5 hours ago
- Business
- Irish Times
Donohoe warns National Economic Dialogue on tariff threat to economy
The near-term economic outlook is 'clouded in uncertainty', which is weighing on consumer and business spending, and this is likely to continue until there is clarity regarding tariffs , Minister for Finance Paschal Donohoe will tell the Government-convened National Economic Dialogue on Monday. Mr Donohoe is to address the pre-budget event involving trade unions, employers and other interest groups, which is taking place at Dublin Castle. Mr Donohoe's opening address will lay out the State's current economic backdrop and the headwinds it faces, pointing out that the impact of tariffs on consumer and business spending has led the Government to revise down its forecasts for this year and next. Modified domestic demand, which focuses on output in the domestic economy by stripping out multinational activity, is now projected to grow by 2.5 per cent this year and by 2.75 per cent next year. READ MORE In the event existing tariffs were to remain in place, growth in modified domestic demand would be around 1.5 percentage points lower by the end of next year relative to the baseline scenario. Mr Donohoe will also point out that the recent period of heightened inflation 'has passed', with prices 'now increasing at rates consistent with price stability', but admitted that the price level 'is now higher'. More broadly, Mr Donohoe will say we are now navigating a markedly different economic environment compared with recent decades, one shaped by 'economic fragmentation and heightened geopolitical tensions'. 'This shift has significant economic implications, not just for trade, but for investment flows and long-term economic resilience,' he will say. 'Tariffs are a symptom of this new normal. Their re-emergence is worrying – taxes on imports lead to higher prices for businesses and consumers and create disincentives for firms considering long-run investments. 'More generally, the benefits of trade are being replaced by zero-sum thinking that is detrimental to living standards on all sides.' Mr Donohoe will also pledge to use the money from last year's Apple tax ruling in the Court of Justice of the European Union to invest in the State's stock of infrastructure, particularly in the areas of housing, energy, water and transport. 'We know that these revenues are once-off and must not be squandered. They must be deployed in a transformative way – in a way that mobilises private capital such as inward investment. This is how we will maximise the return to the taxpayer on these funds.' Looking at the fiscal parameters, Mr Donohoe will say Ireland's headline surplus, which exceeded €25 billion last year due to the Apple money, 'masks considerable vulnerabilities'. 'Much of the headline balance arises from a handful of large multinationals and, as I mentioned, the mood-music is changing,' he will say. 'It is not appropriate – indeed it could be dangerous – to plan on the basis of these receipts being permanent.'
Irish Independent
11 hours ago
- Business
- Irish Independent
Lack of affordable housing to be main priority of October's Budget, Simon Harris will tell economic gathering today
Simon Harris will also warn the threat of further tariffs on EU goods entering the US represents 'the most serious challenge to transatlantic economic relations in generations'. The Foreign Affairs and Trade Minister will hold discussions later today with the EU's Trade Commissioner Maros Sefcovic and receive an update on negotiations with the US. Last week, Mr Harris expressed hope that a deal can be reached to avoid tariffs of up to 50pc being introduced in 23 days' time. Mr Harris will also deliver a keynote speech at the National Economic Dialogue at Dublin Castle, where he will insist that the EU must remain steadfast in pursuing 'substantive, calm, measured and comprehensive dialogue' with the US in order to avoid the imposition of further tariffs. He will argue that this year's Budget 'must be framed to ensure Ireland remains competitive in a turbulent global economy'. Mr Harris will say 'the greatest challenge and strain our economy faces remains housing' and the Budget and the upcoming National Development Plan 'must prioritise the construction of homes'. In relation to the looming threat of further tariffs, the Tánaiste will say that 'despite the suspension of higher tariff rates announced on so-called Liberation Day, and notwithstanding the ongoing legal dispute arising from the US Court of International Trade ruling, Irish and EU exporters to the United States remain subject to an additional 10pc tariff on goods, as well as sectoral tariffs on steel, aluminium, and cars'. 'Together with threats of further tariffs on pharmaceuticals, semiconductors, and aircraft arising from Section 232 investigations, this represents the most serious challenge to transatlantic economic relations in generations,' he will say. He will also emphasise the importance of Ireland taking its own actions in order to boost competitiveness and protect businesses. He will point to the energy sector as an example where there are particular opportunities for Irish companies. And he will also stress the need to reduce barriers at an EU level so businesses can grow. The Tánaiste will also reference Ireland's hosting of the EU presidency next year as a major opportunity to show leadership on the world stage.
Irish Examiner
12 hours ago
- Business
- Irish Examiner
Tariffs represent 'most serious challenge to transatlantic economic relations in generations'
The Tánaiste is to warn that the threat of further tariffs represents 'the most serious challenge to transatlantic economic relations in generations". In a keynote speech at the National Economic Dialogue at Dublin Castle, Simon Harris will insist that the EU must remain steadfast in pursuing 'substantive, calm, measured, and comprehensive dialogue' with the US in order to avoid the imposition of further tariffs. Later on Monday, the Tánaiste and minister for foreign affairs and trade will hold discussions with the EU's trade commissioner Maros Sefcovic and receive an update on negotiations with the US. There are 23 days left to reaching a trade agreement between the US and the EU. The Tánaiste spoke last week with US trade chief Jameson Greer and will also hold a series of engagements with his European counterparts this week. He will tell the National Economic Dialogue that this year's budget must be framed to ensure Ireland remains competitive in a turbulent global economy. He will say the greatest challenge and strain our economy faces remains housing, so the budget and the upcoming national development plan must prioritise the construction of homes. In relation to the looming threat of further tariffs, the Tánaiste will say that 'despite the suspension of higher tariff rates announced on so-called 'Liberation Day', and notwithstanding the ongoing legal dispute arising from the US Court of International Trade ruling, Irish and EU exporters to the US remain subject to an additional 10% tariff on goods, as well as sectoral tariffs on steel, aluminium, and cars. He will add: 'Together with threats of further tariffs on pharmaceuticals, semiconductors, and aircraft arising from Section 232 investigations, this represents the most serious challenge to transatlantic economic relations in generations.' The Tánaiste will also emphasise the importance of Ireland taking its own actions in order to boost competitiveness and protect businesses. He will point to the energy sector as an example where there are particular opportunities for Irish companies and stress the need to reduce barriers at an EU level so businesses can grow. 'Too many European companies remain trapped in domestic markets, unable to achieve the scale necessary to compete globally," Mr Harris will say. 'I am working to reduce barriers to cross-border expansion and to create incentives for companies to think European from the outset.' The Tanaiste will also reference Ireland's hosting of the EU presidency as a major opportunity to show leadership on the world stage. 'Make no mistake — the rules-based, multilateral trading system is being challenged. "At a time of global uncertainty, Ireland must not only defend this model but continue to strengthen and champion it. "We can absolutely do this; our experience as a small, open economy that has thrived through European integration while maintaining global connections puts us in an excellent position. 'Whether in managing trade tensions with the US, rebuilding relationships with the UK, enhancing European competitiveness, or leading the EU during our presidency, Ireland has the opportunity to contribute constructively to solutions. 'I am committed to ensuring that we seize that opportunity — for Ireland, for Europe, and for the common values that we share.' Read More Trade uncertainty denting confidence in Irish businesses, warns report
ITV News
13 hours ago
- Business
- ITV News
Trade benefits being replaced by ‘zero-sum thinking'
The benefits of trade are being 'replaced by zero-sum thinking that is detrimental to living standards on all sides', Ireland's Finance Minister Paschal Donohoe will say. In his remarks to the National Economic Dialogue at Dublin Castle, Mr Donohoe will also say that tariffs are a symptom of the 'new normal' in global economics. Taoiseach Micheal Martin and Tanaiste Simon Harris are also addressing the event, a forum for consultation and debate on the budget. Mr Donohoe will say that the global trade landscape 'looks very different to what we have become accustomed to'. He will say: 'A complex interplay between geopolitics and economics is now playing out. 'This means that after decades of deepening economic integration, we are now navigating a markedly different environment – one shaped by economic fragmentation and heightened geopolitical tensions. 'This shift has significant economic implications, not just for trade, but for investment flows and long-term economic resilience.' Mr Donohoe will also tell the event: 'Tariffs are a symptom of this 'new normal'. 'Their re-emergence is worrying – taxes on imports lead to higher prices for businesses and consumers and create disincentives for firms considering long-run investments. 'More generally, the benefits of trade are being replaced by zero-sum thinking that is detrimental to living standards on all sides. 'That is why the Government remains actively engaged in discussions at EU level and with key international partners to put forward an alternative approach that once again supports principles of openness and multilateralism.' The Finance Minister will also tell the audience that Ireland's economy has recorded a positive start to the year but that the future outlook is 'clouded in uncertainty'.
