Ireland's competitiveness council urges government to stick to spending limits

Ireland's National Competitive and Productivity Council has called on the government to rein in its accelerating expenditure, which is growing faster than in any other eurozone country. The independent body, established to advise on maintaining Ireland's competitiveness, issued a warning about the coalition's spending.

Beyond fiscal discipline, the council recommended accelerating investment and modernization of the electricity grid. It stressed the need to adequately resource and incentivize EirGrid to meet these infrastructure goals. The delivery of phase one of Ireland's offshore wind energy projects, including six major developments, was also highlighted, alongside the North-South electricity interconnector.

To bolster energy security, the council backed the swift implementation of liquefied natural gas (LNG) storage facilities. On industrial relations, it suggested the government leverage the new public service agreement to drive reform, digitization, and productivity improvements. The council also urged the government to harness the opportunities presented by artificial intelligence to maximize benefits for the labor market.

Alan Barrett, chairman of the council, stated that competitiveness requires continuous effort through sound economic management, investment in critical infrastructure, modern public services, affordable and secure energy, and the adoption of new technologies like AI. He emphasized that these recommendations aim to ensure Ireland remains competitive and resilient, positioning it to seize future opportunities.

“

Competitiveness must be continually earned through sound economic management, investment in critical infrastructure, modern public services, affordable and secure energy, and the successful adoption of new technologies such as AI.