Ireland’s finance minister discusses the country’s economy amid war in Ukraine

Pascal DonohoeIrish Finance Minister, discussed with MEPs on Wednesday Ireland’s economic situation and Ireland’s position vis-à-vis upcoming EU legislation and reforms.

Addressing the Committee on Economic and Monetary Affairs, Mr Donohoe explained that his country’s growth forecast had been reduced by 2¼ points following Russia’s war in Ukraine and rising oil prices. the resulting energy and raw materials. Growth was expected to be around 4%, however, although this projection depended on the war. With uncertainty prevailing, the margin for error remains large and the balance of risk is tilted to the downside, Donohoe added.

MEPs wanted above all to obtain clarification on Ireland’s position on the reform of the stability and growth pact, the completion of the banking union, the directive on minimum taxation, the Unshell proposal, which aims to better frame the use of shell companies, and the possible creation of a permanent budgetary capacity within the EU, similar to the recovery and resilience facility. They also wanted to know how soaring inflation was affecting Ireland and how the country was addressing the social dimension of the war-induced crisis, particularly in relation to fuel poverty. Questions were also asked about the country’s cost of housing, its borrowing needs in the coming years and its debt reduction strategy.

This was the fourth such meeting, after similar meetings with the finance ministers of Cyprus, Spain and Greece. Other similar meetings are planned with the finance ministers of Romania and Portugal.

You can rewatch the meeting here (scroll to 11:00 on the time bar)

Pat R. Madsen