Tuesday, May 28, 2024

EU forecast: Ireland’s ‘brisk’ public spending offset by still-high taxes

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Spending across all government departments is eating into Ireland’s budget surplus, the European Commission has said. But still-buoyant tax receipts offer the government cover, while the EU braces for a ‘hot fiscal summer.

In the not too distant past, staff in the European Commission’s economy directorate regularly issued volatility warnings on Ireland’s corporate tax receipts. Not so in their latest economic forecast — though that doesn’t mean they’re not worried.

“I don’t think the structural picture has changed,” economy commissioner Paolo Gentiloni told the Business Post on Wednesday. “The reality is that there is a lot of volatility connected to the extraordinary role of corporation tax.”

Business Post International

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