Huge public spending on Covid-19 will soon be cut, according to a warning the government will issue next week to unions and employers.
He also indicates that with the recovery of the private sector which is accelerating, it is necessary to reduce public support in order not to overheat the economy.
According to Irish weather, the finance ministry’s warning is described in documents distributed to stakeholders ahead of the National Economic Dialogue next week.
Officials point out that public debt is among the highest in the European Union and amounts, per capita, to around € 45,000 per person. It is also one of the highest levels in the world, they say.
According to the department, spending cuts or tax increases will be needed to fund future spending on retirement, health and climate action.
The warnings also come as the hotel industry demands increased financial support of up to double current levels if the return of domestic services is delayed due to the threat posed by the Delta variant.
Persistent uncertainty over the resumption of interior services in restaurants and pubs on July 5 sparked a backlash from hospitality representatives.
The Taoiseach warns that continued support in the event of a pandemic “will not …
The national public health emergency team (Nphet) is due to meet to discuss the issue on Wednesday. This will be followed by a Cabinet subcommittee discussion, with a final decision expected after a plenary government meeting on Thursday.
Adrian Cummins, managing director of the Restaurants Association of Ireland, said “summer is wasted” for restaurants, especially in tourist areas, if they don’t get a “good July”.
“The government must now rise to the occasion and raise the level of payments if we are going to close for July,” he said, suggesting that the Covid Restrictions Support Scheme (CRSS) should be doubled.
Government sources said Irish weather financial backers will likely be considered if there is a decision to postpone the reopening, with one suggesting there would be “sympathetic voices in Cabinet.”