Employers, Unions, Government Meet on Budget 2027 Priorities Amid Economic Challenges
Employers, unions, and Government ministers are meeting in Dublin Castle to discuss Budget 2027 priorities. Key topics include long-term economic challenges, immediate inflation, and energy cost pressures. Discussions will cover tax policy, public services, and AI's impact on the workforce.
Employers, trade unions, and Government ministers are meeting at Dublin Castle to discuss priorities for Budget 2027. The event, titled «reforming now for a secure future», focuses on actions following a long-term forecast highlighting economic challenges until 2065, alongside immediate cost pressures from inflation and rising energy prices.
Inflation is at 3.6%, electricity and gas prices are increasing, and the European Central Bank has raised interest rates. The Irish Congress of Trade Unions (ICTU) criticized the Government's €750 million VAT cut for hospitality and aid to the haulage industry. ICTU General Secretary Owen Reidy urged the Government to use corporation tax windfalls to support workers, invest in public services, and implement double indexation of tax bands, reduce public transport and childcare costs, and advance pay-related parent's benefit.
Tánaiste and Minister for Finance Simon Harris will discuss increasing the income tax higher rate threshold to ensure wage growth translates to higher take-home pay. The Department of Finance will highlight demographic changes, decarbonization, digitization investment, and deglobalization effects. Taoiseach Micheál Martin noted Ireland's economy is resilient but faces geopolitical fragmentation, prioritizing AI for productivity, public services, and scientific breakthroughs.
IBEC director Fergal O'Brien emphasized Ireland's need to actively manage workforce transition for AI, calling for the €2 billion national training fund to be used for lifelong learning and upskilling.