Government to bring proposals to boost competitiveness amid economic tensions
By Gráinne Ní Aodha, PA
Proposals to make Ireland more competitive amid disruption to economic norms are to be brought before Ministers on Tuesday morning.
Tánaiste Simon Harris, who is also Minister for Trade and Foreign Affairs, is to update colleagues on plans to make Ireland more competitive.
Harris will present an assessment of the Letta and Draghi reports, which set out visions for the EU’s Single Market and competitiveness, respectively.
He will also update the Cabinet on the EU and UK committing to improve relations ahead of the a high level EU-UK summit on May 19th, the first once since Brexit.
Minister for Enterprise, Peter Burke, is to seek approval to fast-track an action plan on competitiveness and productivity over the next 12 weeks.
It is understood the plan will cover reducing the cost and regulatory burden on businesses, investing in infrastructure, digital regulation, energy reform, trade, innovation, and research and development.
The plan is being accelerated to ensure that any proposed tax changes or spending decisions can be reflected in the budgetary process.
It comes as the Government mulls over the timing of introducing previously-pledged initiatives such as the introduction of the living wage and the pension auto-enrolment scheme.
The delays are being considered amid concern for Ireland’s vulnerability to the economic and trade disruption caused by the new US administration.
Public expenditure minister Jack Chambers confirmed that the pension auto-enrolment scheme would likely not kick in in September as planned.
“It’s likely to be pushed beyond September, but it’s likely to still occur in the short number of months after September,” he told RTÉ’s This Week.
“So the direct commencement date is under active consideration by Minister (for Social Protection Dara Calleary, and he will bring forward an update to the government on that.”
Asked about the minimum wage, and the plan for phased increases to €15 by 2026, he said: “The nature and scale of the increases may be extended over a slightly longer period.
“There would still, I expect, be increases, but it would be managed in a more sustainable way that reflects the need within the Irish economy to preserve jobs, to ensure we manage the overall cost base.”
Mr Harris and Mr Burke are to also to update Cabinet on plans to prioritise work on the EU-Canada free trade agreement and other international free trade agreements, develop plans on market diversification and possible trade missions that could be expanded in the EU, Canada and Japan, as well as joint economic commissions with China, India and the UAE.
Minister for Finance and President of the Eurogroup, Paschal Donohoe, will also travel to Cyprus and Greece this week for a series of meetings to discuss the global upheaval and related issues.
On Tuesday, Mr Donohoe is in Nicosia for bilateral meetings with the President of the Republic of Cyprus Nikos Christodoulides and the Minister of Finance, Makis Keravnos.
He will also meet with members of An Garda Siochana serving with the United Nations Force in Cyprus.
On Wednesday, he will be in Athens for bilateral meetings with the Greek Prime Minister, Kyriakos Mitsotakis, and the Minister of Economy and Finance, Kyriakos Pierrakakis.