In a decisive move to bolster Ireland’s economic resilience, Minister for Enterprise, Trade and Employment, Peter Burke, has announced government approval to expedite the development of a comprehensive Action Plan on Competitiveness and Productivity. This initiative aims to address the evolving global economic landscape marked by geopolitical tensions, trade uncertainties, and persistent cost pressures affecting businesses.
The government has committed to delivering a draft of the Action Plan within 12 weeks, with discussions scheduled for a Ministerial Summit in July. The plan will focus on actionable reforms across various sectors to enhance Ireland’s competitive edge.
Minister Burke emphasized the importance of proactive measures, stating, “To safeguard our economic future and support our enterprises, we must act decisively on the domestic factors we can influence.”
Complementing the long-term strategy, the government has approved a suite of immediate measures to support businesses. These include enhancing international trade promotion supports, addressing business costs through regulatory adjustments, and improving energy security and infrastructure delivery.
Minister of State for Small Business and Retail, Alan Dillon, highlighted the significance of small businesses, noting, “Small businesses are the backbone of our economy and a vital source of jobs and innovation in every town and community across Ireland.” The establishment of a dedicated Small Business Unit and the creation of the Cost of Business Advisory Forum will ensure that the voice of small businesses is heard clearly in shaping future policy.
Minister of State for Trade Promotion, Artificial Intelligence, and Digital Transformation, Niamh Smyth, welcomed the government’s commitment to creating tangible growth opportunities for enterprises in Ireland. She emphasized the critical role of competitiveness in fostering sustainable growth within an open economy.
The government’s focus on competitiveness comes amid a changing international context and heightened EU attention on bolstering Europe’s economic dynamism. While Ireland benefits from a skilled workforce and success in attracting high-value foreign direct investment, challenges remain, notably in infrastructure capacity and the high cost of doing business compared to competitor nations.
The Programme for Government mandated the development of the Action Plan on Competitiveness and Productivity, intended to cover areas critical to Ireland’s economic performance, including industrial policy, regulatory burden reduction, infrastructure, energy, trade, and innovation. By expediting this Plan, the government aims to align key decisions with the upcoming budgetary process, enabling swift implementation. The approach will be evidence-based, involving consultation across government departments and with stakeholders.
In addition to accelerating the action plan, the government has approved the following high-level short-term measures for implementation by May 2025:
- Enhancing International Trade Promotion: Actions will focus on implementing enhanced advisory supports for exporters facing disruption, accelerating progress on key international trade agreements like CETA, developing a strategic approach to market diversification, streamlining security clearance processes for exporters, and bringing forward a National Semiconductor Strategy.
- Addressing Business Costs: Measures include adjusting the implementation timeline for the Living Wage to 2029, deferring decisions on youth sub-minimum wage rates, and pausing further changes to statutory sick pay. A new Cost of Business Advisory Forum will be established, omnibus changes to simplify the CSRD regulations will proceed, a Small Business Unit will be created, and competition and consumer protection enforcement will be strengthened.
- Improving Energy Infrastructure: Steps will be taken to provide policy certainty regarding data centres, publish plans for connecting large energy users to the grid, foster collaboration between government and industry on offshore renewable energy development, accelerate the deployment of critical electricity grid infrastructure, and explore options for development routes to market for zones B, C, and D in South Coast DMAP to provide a pathway for future offshore wind energy to meet growing electricity demand.
These combined efforts demonstrate the government’s commitment to proactively managing challenges and maintaining Ireland as an attractive and competitive location for business.
Minister for Enterprise, Tourism and Employment, Peter Burke Picture from Linkedin
