National Economic Dialogue 2026 Opening Remarks by Tánaiste and Minister for Finance

Good morning everyone.

I am delighted to see so many of you here today for this year’s National Economic Dialogue.

I would like to begin by thanking An Taoiseach for his opening address and Professor Orla Doyle for chairing what I am sure will be a very constructive and valuable day of discussion and debate.

It is particularly fitting that we gather here in Dublin Castle as Ireland prepares to assume the Presidency of the Council of the European Union on July 1st.

Over the months ahead, this venue will host many important meetings as we welcome our European partners to Ireland.

We take on the responsibility of holding the Presidency at a time of profound uncertainty.

The international systems that have underpinned prosperity and stability for decades are under intense strain.

Conflict continues to have devastating human consequences and its economic impacts are felt far beyond the regions in which it occurs.

As Ireland assumes the Presidency, we do so as an honest broker, a committed European partner and a country ready to help build consensus at a time when our world is becoming increasingly fragmented.

We will work with our partners to strengthen competitiveness, support innovation, make it easier to do business and defend the values that matter to us the most.

As we begin preparations for Budget 2027, today provides an important opportunity to listen.

To hear directly from representatives of workers, business, communities, civil society and academia.

Because budgetary decisions matter.

They shape opportunities for our people.

They build the services on which families rely upon.

And they help determine the kind of country we leave to future generations.

The theme of this year’s Dialogue - Future Forty - rightly asks us to look beyond the immediate horizon.

Because as we prepare any Budget, we must remember that good government is not simply about responding to today or tomorrow’s challenges.

It is about preparing our country for the decades ahead.

When I reflect on those challenges, I remain optimistic.

And that optimism is grounded in experience.

Ireland has repeatedly demonstrated its resilience.

Despite a pandemic, a war in Ukraine, a conflict in the Middle East, inflation shocks, an energy crisis and growing geo-political instability, our economy has continued to grow and employment remains close to record levels.

But we know the future will not simply look like the recent past.

Our population is ageing.

The climate transition will require sustained investment.

Artificial intelligence will transform how we work, produce and compete.

And the geo-political environment continues to evolve at a rapid pace.

As a small and highly open economy, Ireland cannot insulate itself from these developments.

But we can prepare for them.

And that is precisely what this Government intends to do.

At a headline level, Ireland’s public finances remain strong.

We are one of the few countries in Europe running budget surpluses.

That strength matters.

It allows us to respond to shocks, support households and businesses when necessary and continue investing in our future.

Recent interventions have demonstrated our capacity to act quickly and decisively while maintaining fiscal responsibility.

Importantly, we have done so without borrowing to fund day-to-day spending.

Our corporation tax receipts continue to reflect Ireland’s success in attracting investment, supporting enterprise and creating jobs.

But we must also be honest with ourselves.

We cannot assume current levels of revenue will continue indefinitely.

That is why we established the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.

And that is why almost €20 billion has already been invested in those funds.

These funds are about inter-generational responsibility.

They reflect a simple principle: that today’s strength must be used to prepare for tomorrow’s challenges.

At the same time, we are investing in the public services and infrastructure that people and communities need and deserve.

Because strong public finances are not an end in themselves.

They are a means to build a stronger, fairer and more resilient Ireland.

Colleagues, a strong economy must deliver for the people who power it every day.

For workers, families, entrepreneurs and communities.

That means ensuring that work pays.

Good progress has been made in recent years in reducing the burden of taxation on workers.

Successive Budgets have increased the point at which workers enter the higher rate of income tax, helping people keep more of what they earn.

But we do need to do more.

As we prepare Budget 2027, we will consider further increases in that threshold as a practical way of ensuring wage growth translates into higher take-home pay.

This is about supporting people who work hard, contribute to their communities, raise families and keep our economy moving.

Because economic progress must be felt not only in headline statistics, but in people’s pay packets and in their daily lives.

Reducing the cost of living is equally important.

One of the clearest examples of where investment and reform can make a real difference is childcare.

For too many families, childcare remains one of the largest monthly expenses they face.

When childcare is expensive, parents - particularly mothers - can face difficult choices between remaining in work and providing care at home.

Since 2020, we have more than doubled funding to the National Childcare Scheme, reducing out-of-pocket childcare costs for parents.

But we know more must be done.

Women in Ireland continue to have lower labour force participation than many leading EU and OECD countries.

Women are also far more likely to work part-time, in part because the cost of childcare can make full-time employment financially unattractive.

This contributes to wider inequalities in earnings, career progression and pension outcomes.

Recent research from the ESRI points to an increase in the participation rate of mothers with young children, associated with the introduction of the National Childcare Scheme.

Access to high-quality early childhood education, also enhances long-term educational outcomes and future labour market opportunities. It may also help support fertility rates, although the fact that fertility.

That is why Government must remain committed to making childcare substantially more affordable for working families.

Because investing in childcare is not only good social policy.

It is good economic policy.

Indeed, it is one of the smartest investments any country can make.

Saving and Investing

We also need to broaden how we think about financial security.

Too many people save responsibly, and regularly, but feel locked out of investing and wealth creation.

For many households, economic security is not simply about income today. It is also about building resilience and opportunity for the future.

As part of Budget 2027, we will make saving and investing more accessible and more attractive for ordinary households.

Our objective should be straightforward: to help people build financial resilience, support long-term wealth creation and enable more citizens to participate directly in the opportunities created by economic growth.

Economic security should not be the preserve of a few.

It should be within reach of every household.

Alongside supporting households, we must continue investing in housing and infrastructure.

Housing is both a social imperative and an economic necessity.

The competitiveness of our economy increasingly depends on our ability to provide homes for a growing population.

By increasing housing supply and investing in transport, water, energy and digital infrastructure, we can strengthen the productive capacity of our economy while improving living standards.

At the same time, we must embrace innovation.

Artificial intelligence and digital technologies have the potential to improve public services, boost productivity and deliver better value for taxpayers.

If we get this right, technology can become a powerful enabler of growth, opportunity and better public services.

Colleagues, Ireland enters this period from a position of strength.

But strength alone is not enough.

We must use this moment wisely.

We must reward work.

We must support families.

We must invest in housing, childcare, energy and infrastructure.

We must help people save, invest and build security for the future.

And we must prepare our country for the challenges and opportunities that lie ahead.

Ultimately, our objective is straightforward.

To build an economy that works for people.

An economy where work is rewarded.

Where families can get ahead, not just get by.

Where more people can achieve the dream of owning a home of their own.

Where people can save and invest for the future.

Where businesses can grow and create jobs.

And where today’s strength is used responsibly to prepare for tomorrow’s challenges.

Ireland’s story has always been one of resilience, ambition and progress.

The challenge now is to ensure that the opportunities of the decades ahead are matched by rising living standards, stronger public services, greater economic security and a realistic pathway to home ownership for the next generation.

That is the task before us.

And that is why today’s discussion matters.

I look forward to hearing your views throughout the day.

Go raibh míle maith agaibh go léir.

ENDS