For the third consecutive year, Ireland has generated a budget surplus of more than 8 billion euros, almost 2% of GDP. The country stands out from other Eurozone countries that face the challenge of budget deficits. France is in the lead with a deficit now estimated at more than 5% of GDP, well above the 3% established by the institutions.
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Amazon, Apple, Microsoft and Pfizer have found in Ireland a welcoming land with advantageous taxation and have established their European headquarters there. Corporate tax thus brought in 24 billion last year to the country.
A financial windfall therefore dependent on the boom and bust cycles of large companies. To secure this exceptional income, the authorities have declared that they want to create a new sovereign fund by 2030.
But this good financial health – coupled with near full employment – is not felt as such by the entire population. Ireland is facing a growing housing deficit, with 250,000 rentals missing. A tension on the market that has caused rental prices to soar and put significant pressure on household budgets.
Also readIreland: Housing crisis sends rent prices soaring
A “ illusion of gain » for 2025?
The increase in government spending planned in the 2025 budget will generate ” an illusion of gain ” for household finances, but will have a long-term cost, the state’s fiscal watchdog has warned, according to theIrish Examiner.
The Irish Fiscal Advisory Council (Ifac) has warned that exceeding the government’s 5% spending rule would cause prices to rise at home. consumption and an increase of €1,000 in annual household expenditure.
Transport and health infrastructure issues are also at the heart of the criticism. Economic and social issues that are sure to be on the agenda of the next general elections, which are due to be held by March 2025.