Address at Sciences Po, Paris – ‘Unlocking the potential of the euro area’s economic landscape’

Good afternoon. It is a real pleasure to be here with you in this renowned institution to share my thoughts on how we can unlock the potential of the euro area’s economic landscape. My warmest thanks to Professor Saraceno and the faculty at Sciences Po for hosting me today. 

 

I will deliver my remarks in my capacity as President of the Eurogroup, but first I’d like to mention that I am in Paris today as part of a global programme of engagement by the Government of Ireland to mark St Patrick’s Day. 

 

Each year, members of our Government travel overseas to celebrate the strength and richness of Ireland’s bilateral relationships with other countries. France is Ireland’s closest neighbour in the European Union, and the ties that bind our two countries extend back centuries; from the support that France gave to Ireland’s cause of independence, to vibrant contemporary cultural connections, educational exchange and growing trade.

 

So I am delighted to have the opportunity to celebrate the richness of the partnership between France and Ireland, and I’m particularly pleased to do so in front of an audience of French and Irish students who are its living proof. 

 

The theme for St Patrick’s Day 2024 is ‘Ireland’s future in the world,’ which focuses on young people and our Diaspora, their perspectives about the world of the future and Ireland’s place in it.  In my role as President of the Eurogroup, I would therefore like to expand on these themes through a wider lens – to think a bit about the world of the future and our place in it as Europeans. And I particularly look forward to taking your questions and hearing your perspectives later on.

 

The world of the future: the next European legislative cycle

When I talk about the world of the future, and unlocking the potential of the euro area’s economic landscape, I’d like to start with the near-term – by thinking about the next five years.

 

As I scarcely need to recall before an auditorium of political science students, the European elections will take place in just under three months’ time. From the sixth to the ninth of June, in one of the world’s largest democratic exercises, European citizens will go to the polls to elect a new European Parliament. Once formed, the new legislature will then elect a President of the European Commission and approve a College of Commissioners – which will set out a new legislative programme for the next five years. 

 

Electoral cycles afford us an opportunity to reflect on our recent lived experiences in society and our hopes for the period ahead. What we expect and hope that Europe can deliver for us will be on our minds as we cast our ballots in June.

 

The late Jacques Delors – one of the many great French architects of European integration – who said that the idea of Europe is a dream, but a dream that is becoming a reality.

 

And indeed, both the potential and the reality of Europe have never been so clearly demonstrated than in recent years. 

 

Since the last European elections in 2019, we have been confronted by a global pandemic, the tragic outbreak of war on the continent of Europe with Russia’s invasion of Ukraine, and a cost of living crisis that arose from energy prices pressures that, in turn, morphed into broader inflationary pressures. 

 

In response to each of these shocks, Europe acted with decisiveness and unity, putting forward innovative solutions to deliver what European citizens needed. This was the case with the common procurement and distribution of Covid vaccines. And the decision to the establish the €750 billion Recovery and Resilience Fund to support Member States’ investments in health, digitalisation and climate resilience to build back post-pandemic.

 

Economic policy was extraordinarily supportive and coordinated through this period – both budgetary and monetary policy worked together – through tax and welfare supports, through subsidies and through low interest rates.

 

European governments borrowed heavily through these testing times to protect lives and livelihoods and these policies worked. Our economies bounced back and recovered strongly once the pandemic restrictions were eased with the euro area growing robustly up until the war in Ukraine.

 

The tragedy of war on our continent is something that we have faced every day for the past two years. Our support for Ukraine is steadfast and resolute. Since the start of the war, the EU and its Member States have provided relief and assistance to Ukraine worth over €88 billion. And last month the European Council agreed an additional €50 billion support package.

 

Finance Ministers have also worked together in combatting the cost of living crisis that stemmed from Russia’s weaponisation of energy supplies. Over the last two years, euro area governments have borrowed to provide cost of living supports – with supports averaging close to 1.6% of euro area GDP over the past 2 years.

 

Even in the face of a war and cost of living pressures, our economies still managed to grow last year – modestly, yes, but still positive. The euro area did not enter a recession as many had expected, which has been a testimony to our economic resilience. Our labour markets continue to be exceptionally strong with record low levels of unemployment (6.4%) and record high rates of labour market activity.

 

We have also managed to bring inflation down, from rates of 8.5% just a year ago to 2.6% in the euro area in February. All of this is a tangible expression of the potential and joined up policy coordination in Europe, its agility and ability to be bold in times of crises as well as a reminder of just how much can change over the course of five years. 

 

The Role of Eurogroup

So what about the next five years?

 

It is fitting to recall that as early as 1949, Jacques Rueff, a former director of Sciences Po, said that Europe will be united through its currency, or it will not be united at all. 

 

It may have taken 50 years from when he said those words to turn this dream into reality, but since its launch in 1999, the euro has come to serve as the bedrock for many of our shared priorities and an integral part of our economic security and prosperity.

 

I believe it is through an effective economic response to the major challenges that we face that we will unlock the full potential of the euro area economy.

 

So what does that entail, and how does the work of the Eurogroup fit in?

 

I see three interconnected strands from my perspective as President of the Eurogroup:

 

  • Coordination – how we work together as Member States to coordinate our economic policies in response to economic and financial developments.
  • Competitiveness and Capital Markets – how we reinforce the economic performance of the euro area and its position in the global economy through promotion of structural reforms and investments that foster growth, while also contributing to the goals of the green and digital transitions; and
  • The Future of our Currency – how we think about our future in a world which is becoming more and more digitalised, and in the context of an enlarging European Union.

 

Our work programme for the first half of 2024 is centred around these three areas but I believe that they also reflect the longer-term economic challenges facing the euro area and the EU more broadly.

 

I’ll expand on each of these areas in a bit more detail now. 

 

Growth and Safe Finances

First, on coordination. 

 

The euro area economy’s first challenge is to chart a course for sustained economic growth and prosperity in the period ahead. This will allow countries to return to a more normal level of borrowing and expenditure.

 

This is no small feat given the scale of the shocks we have faced these past years. Nevertheless, if we don’t have strong foundations, the house we have built will not weather any storms that are on the horizon. 

 

For example, due to the recent significant increase in interest rates, euro area countries now face higher borrowing costs on newly issued debt.  So this means we face a choice of spending less or increasing revenues. 

 

The euro area’s debt-to-GDP ratio is on a declining trajectory and should fall below 90% this year. Deficit levels are also decreasing – from 3.6% of GDP in 2022 to 3.2% in 2023, with a further decline to below 3% forecast by the end of this year. 

 

This shows we are delivering on our collective commitment in the euro area to restore public finances to a sustainable trajectory. Furthermore, we have just agreed on an ambitious and comprehensive reform of the EU’s economic governance framework – it aims to encourage Member States to implement the measures needed for the green and digital transitions, strengthen economic and social resilience and bolster Europe’s security capacity.

 

This will help bolster the growth outlook in the years ahead.

 

While I am conscious that uncertainty remains exceptionally high – not least due to geopolitical tensions – I am confident that the conditions are in place for an upturn in growth in 2024, and I’d expect GDP to average close to 1% this year and 1.5% in 2025. 

 

And crucially, we will achieve this while also ensuring safe finances and that we reinforce our resilience and capacity to face shocks in the future.

 

Where we do need to make more progress, though, is in terms of Europe’s productivity. This leads me to a key focus of the Eurogroup work in past months – the state of European capital markets, the interplay with European competitiveness and our priority areas for reform.

 

Competitiveness and capital markets

Second, are all cognisant of the scale of the challenges we face. Europe, as a continent, has an aging population, which places growing demands on our welfare systems. We have set ambitious carbon neutrality objectives that require large investments. We will need to carefully respond to the opportunities and risks posed by new and emerging technologies. And we have seen a significant response from public investment in response to the twin crises of the Covid-19 pandemic and Russia’s war on Ukraine.

 

The onus of financing cannot rest solely upon the public purse. We will need to boost our capital markets and unlock sources of private financing to support our public actions.

 

By enhancing our competitiveness through structural reforms and deepening Europe’s capital markets, we have the potential to unlock new sources of financing for the challenges we face as a continent.

 

This is why the logical focus is to ensure that the EU’s ambition to have a true Single Market for capital becomes a reality.

 

Let me explain why this is so important. If one or more of you here this evening have an innovative business idea, at some stage you will need capital to bring your product to market. If your first thought is to go to your local bank to get a business loan – you would be like many other European businesses.

 

Banks are a much larger part of the financial system in Europe than say in the US, for example; accounting for approximately 62% of total market assets across the euro area compared to just 29% in the US.

 

But banks can be conservative in their lending and restricted to serving their national market.

 

You might also think about seed capital, venture capital and private equity. But the main players in this space tend to be US firms or public agencies.

 

The European equity market is also fragmented compared to the US: it is less than half the size of that of the US market, but has three times as many exchange groups; more than 10 times as many exchanges for listings; more than twice as many exchanges for trading; and roughly 20 times as many post-trade infrastructure providers. 

 

In practice, this means that it is difficult for you as a prospective business owner to access financing from the capital markets. This in turn makes it more difficult to develop and find funding for innovative projects. The result is that we see European businesses looking outside the EU to scale up.

 

Capital markets are also about creating better opportunities for savings. Households in Europe mainly save and invest through banks and insurance companies. Of course, there is nothing wrong with investing in this way – but we want to find ways to provide new opportunities for savers and investors to invest – safely – in innovative companies and projects they believe in, across the whole of the EU. 

 

So what are we doing about it?

 

Yesterday, in the Eurogroup meeting I chaired, all EU Finance Ministers agreed to a common vision on the future of Capital Markets Union. This expresses the political will and commitment of all twenty-seven EU Member States to step up efforts to make concrete progress in the months and years ahead.

 

The Eurogroup statement has set out three priority pillars of action, around the rubric of ‘ABC’. 

  • A for Architecture – that is, how we can reduce barriers, how we can develop a better regulatory and supervisory system that works for businesses, investors and savers.

 

  • B for Businesses – ensuring that businesses, especially SMEs looking to grow quicker, have access as well as the knowledge and capacity to benefit from the appropriate funding to grow and remain competitive in Europe.

 

  • And C for Citizens – all of you. How we can create better opportunities for you to save for your future projects, investments and retirement, and facilitate access to capital markets for retail investors.

 

Our statement identifies areas of political consensus where the legislative energy of the next Commission could be directed. And it has also identified measures which could be taken at the national level, to further develop and deepen our capital markets. 

 

So where do we go from here? 

 

As a first step, I will present this statement to EU leaders at the Euro Summit next week. We need political ownership at the highest level as we set out policy priorities at European and national level. 

 

This will also mark the start of a process of regular follow up at the political level. We must challenge ourselves to keep the political pressure high so as to maintain our common direction of travel on this key issue, which is at the heart of the competitiveness of each and every Member State, as well as the EU collectively.  

 

I’m optimistic about our prospects for making progress, precisely because I recognise the unity of ambition around the Eurogroup table. 

 

And I encourage you all to engage with this project. As I hope I have made clear, the cost of not doing anything here is higher than ever before. And while developing Europe’s capital markets may sound like a lofty goal, we can all play our part – to develop our understanding of how capital markets work, and how we can better fund our futures. 

 

Enlargement  

Before closing, I’d like to say a brief word about future enlargement of the European Union and the implications that holds for Europe’s Economic and Monetary Union. 

 

It is clear that enlargement will be one of the big issues for the next legislative cycle. We have made commitments to our friends and neighbours – commitments which will bring them into our EU family, with all the benefits and responsibilities that this brings. And while we know that these debates will bring challenges, we have seen the extraordinary results of the growth of our European Union and the tremendous potential that further enlargement will offer. 

 

This brings me to the final ‘c’ which I mentioned at the start: the future of our currency.

 

At the end of this week, I will travel to Sofia to discuss Bulgaria’s path to euro area accession. Last year we saw Croatia become the twentieth member of the euro area. 

 

And I am conscious of debates that are taking place in other Member States, which recognise the euro as an essential part of Europe’s economic security fabric, providing greater financial stability and economic prosperity for its members. 

 

Further enlarging the euro area, however, will require us to further strengthen our economic foundations. And so we have a responsibility to ensure a well-functioning economic framework with a clear commitment to sound public finances, a well-functioning banking system, a fully-fledged capital and financial markets union, and a euro area at the forefront of digitalisation to make sure that all our citizens can reap the benefits. It is through continued work in all these areas that the Eurogroup can contribute to unlocking the potential of the euro area’s economic landscape. 

 

Conclusion

I have shared with you today some of my thoughts about the world of the future and what we need to be thinking about today to make sure that the Europe of tomorrow is delivering for its citizens through growth, jobs and quality of life, while at the same time playing its part on the international stage.

 

I really look forward to taking your questions now and to hearing your views on your future and where we are headed. But before we move into Q&A, I would just like to take a quick moment to address the students in the room in particular. 

 

I hope you all feel a sense of pride in the research and learning that you are all part of. Sciences Po has earned the international prestige it holds today thanks to the superb faculty and also all of you and the work you do. 

 

I know many of you will consider a career in public service, whether at local, national, European or international levels. I encourage you to do so. The projects and challenges I discussed this evening will only move forward with the sharpest minds and most generous of spirit.

 

And finally, one public service announcement, though I imagine I have a receptive audience: I encourage you all to make your voice heard and vote in the European Parliament elections in June.

 

Thank you.

 

ENDS

Minister Donohoe marks St Patrick’s Day with visits to France and Bulgaria

The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe T.D., will today (Tuesday) start his St Patrick’s Day programme with an official visit to Paris, where he will undertake a series of political, community, business and student engagements on behalf of the Irish Government. Later in the week, the Minister will travel on to Sofia to continue his St Patrick’s Day programme of events. 

The theme of this year’s international St Patrick’s Day Programme is ‘Ireland’s Future in the World’, which focuses on young Irish people – at home and abroad -and their perspectives about the world of the future and Ireland’s place in it. 

Minister Donohoe, who is also President of the Eurogroup, will be in Paris from Tuesday 12th to Thursday, 14th March. During his visit, he will hold a number of high-level political meetings, including with French Minister for the Economy, Finance and Industrial and Digital Sovereignty, Bruno Le Maire; and Secretary General of the OECD, Mathias Cormann.  

Recognising the focus on young Irish people and our Diaspora as the theme of St Patrick’s Day 2024, Minister Donohoe will deliver a keynote address at Sciences Po University on the theme of ‘Unlocking the potential of the euro area’s economic landscape’. The Minister will visit the Centre Culturel Irlandais to launch an exhibition commemorating 100 years of Ireland’s participation in the Olympic Games and will participate in a number of economic and trade-focused events, as well as having the opportunity to further engage with the Irish community in Paris at the Embassy’s St. Patrick’s Day reception.  

Minister Donohoe will then travel to Sofia on Thursday, 14th March, where he will stay until Saturday, 16th March. While in Bulgaria, he will have a number of high level political engagements, including a meeting with President Rumen Radev, as well as meetings with Prime Minister, Nikolai Denkov; Deputy Prime Minister and Minister for Foreign Affairs, Mariya Gabriel; and Finance Minister, Assen Vassilev.  

Minister Donohoe will also participate in a conference on ‘Bulgaria’s European Path – Accession to the Euro Area, Benefits and Challenges for Businesses’. He will also participate in an event organised by the Embassy of Ireland at the Bulgarian National Library.  

Throughout the week, Minister Donohoe will also undertake a number of media engagements.  

Speaking in advance of the commencement of his programme, Minister Donohoe said: 

“St. Patrick’s Day and the opportunities it presents to us as a country helps us to further develop our relationships with key business and community leaders across the world, to celebrate all that being Irish is about and to forge stronger and more enduring ties with decision makers across a range of sectors. 

“It is a tremendous honour to represent Ireland on the global stage during our St. Patrick’s Day programme and I am delighted to be visiting two of Ireland’s important EU partners, France and Bulgaria, to celebrate this year.  

“France is Ireland’s closest EU neighbour, and our bilateral relationship continues to go from strength to strength across a wide range of areas, encompassing trade, tourism, education, culture and sport. I am particularly looking forward to engaging with young people and the Irish Diaspora during my engagements in Paris, and hearing first-hand from them about the richness of our relationship with France. 

“Ireland also enjoys an excellent bilateral relationship with Bulgaria, which has only been enhanced by our common EU membership. I am particularly pleased to be able to visit Bulgaria, a country which has been clear in its euro area aspirations, and am greatly looking forward to a range of political, cultural and business engagements while in Sofia.”

 

ENDS

 

Itinerary:

Tuesday, 12th March (Paris)

  • Keynote address and engagement with students at Sciences Po Paris 
  • Engagement with Tourism Ireland and Bord Bia

Wednesday, 13th March (Paris) 

  • Opening address at Enterprise Ireland Climate Tech and Decarbonisation Event 
  • Engagement with Network Irlande on French-Irish business connections
  • Open Embassy Olympics exhibition on ‘100 Years of the Games: Ireland’s Journey’ 
  • Bilateral with Minister of the Economy, Finance and Industrial and Digital Sovereignty, Bruno Le Maire
  • Bilateral with Secretary General of the OECD Mathias Cormann 
  • Saint Patrick’s Day reception                   

Thursday, 14th March (Paris)

  • Paris Saint Patrick’s Day Political Reception 
  • Visit to Centre National d’Études Spatiales (CNES) and engagement with Enterprise Ireland clients 

Friday, 15th March (Sofia)

  • Bilateral with Prime Minister Nikolai Denkov 
  • Bilateral with Deputy Prime Minister Mariya Gabriel
  • Opening of Irish Book Corner                     
  • Meeting with President of the Republic of Bulgaria Rumen Radev
  • Meeting with Finance Minister Assen Vassilev
  • Conference: “Bulgaria’s European Path – Accession to the Euro Area, Benefits and Challenges for Businesses”

 

ENDS

President of the Eurogroup, Minister Donohoe, travels to Brussels to chair March Eurogroup meeting

President of the Eurogroup and Minister for Public Expenditure, National Development Plan Delivery and Reform, Paschal Donohoe TD, is in Brussels today (Monday) to chair Eurogroup’s March meeting.

The Eurogroup meeting will begin with a discussion on economic developments and prospects in the euro area before focusing on budgetary policy. The Eurogroup President intends to issue a joint statement with ministers reflecting on budget developments so far this year within the euro area and outlining the broad orientations for policy in 2025. This statement will also refer to the ongoing work on the revised economic governance framework, which is expected to become operational later this year.

Following this, Ministers will meet in extended format (all EU 27 countries) to finalise a Eurogroup statement on the future of the Capital Markets Union. This will conclude an extensive period of work that the Eurogroup has undertaken over the past twelve months with the aim of agreeing a shared set of policy priorities to deepen European capital markets. This work is in response to a call from EU leaders a year ago to step up efforts to make further progress in developing Europe’s capital markets.

Speaking ahead of Eurogroup, Minister Donohoe commented: 

“As we approach the end of the first quarter, I look forward to a busy March Eurogroup meeting. We will finalise our year-long work on reflecting on the future direction for advancing capital and financial markets in Europe in response to the call by EU leaders last March. I will look to agree a statement by all EU Finance Ministers on our key policy priorities and actions for the next few years at both EU and national levels, which will deepen the integration of our EU capital markets. Open, well-functioning and integrated European capital markets are an essential pillar of the Single Market”. 

“We need now, more than ever, to ensure we have the right environment for European businesses to access funding and scale-up in Europe, and for savers and investors to have new opportunities to invest more productively in Europe.”

“This will boost our competitiveness, contribute to improving our living standards and ensure that the EU is a global leader for innovation. We will also exchange views on the euro area economy, drawing on recent forecasts from the European Commission. Fiscal policy is likely to be restrictive this year as energy support measures are phased out and we will provide our common euro area view on orientations for budget planning for 2025.” 

 

ENDS

Minister Donohoe announces establishment of Senior Post Remuneration Committee to guide Government’s work 

The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe TD, today (Wednesday) announced the establishment of the Senior Posts Remuneration Committee. In line with the recommendations of the Independent Review Panel (IRP) on Senior Public Service Recruitment and Pay Determination Processes, the Committee will provide objective and independent advice to the Minister regarding the remuneration of senior roles in the Public Service. Government has agreed that office-holders will not be within scope for the Committee to review.  

Following Government agreement earlier this year to place the Committee on a statutory footing, the Committee will operate on an administrative basis in parallel with the necessary legislation being progressed with the publication of the General Scheme today following Government approval.

Government has agreed to confirm the term length for Secretary General posts at seven years, which reflects current procedures, with a possible extension of up to two additional years where necessary. As recommended in the Independent Review Panel Report on completion of this term of appointment, all future appointees to Secretary General posts will be offered revised arrangements at the end of their term. These revised conditions will be put in place for all posts to be identified from this point onwards. 

As per the recommendations of the Report of the Independent Review Panel, the first review of the Committee will be the pay rates of CEOs of Commercial State Bodies (CSBs). Minister Donohoe will be writing to the Committee shortly to initiate this important work. 

 Minister Donohoe stated:

“I would like to take this opportunity to welcome the members of the Senior Posts Remuneration Committee (SPRC) to their new role as they commence work on this important area. The members are all highly qualified and experienced, and I look forward to receiving their advice in due course. 

In addition, in addressing the recommendations of the Report of the Independent Review Panel in respect of the term and arrangements for these very senior posts Government is enhancing clarity, consistency and transparency for all stakeholders while retaining an ability to preserve experience within the system.”

Notes to Editors 

  1. Senior Posts Remuneration Committee

There are five members of the Senior Posts Remuneration Committee who are as follows:

Chairperson

Ms Maeve Carton: Ms Carton is a chartered accountant and member of the Professional Standards Board of Chartered Accountants Ireland.  She is a Governor of the Irish Times Trust and a member of the Board of Directors of the Institute of International & European Affairs (IIEA), former Chairperson of the National Treasury Management Agency (NTMA) and worked for most of her career with CRH plc in a variety of roles including Group Finance Director and Group Transformation Director.  

Members

Ms Bernie Gray: Ms Gray is a management consultant and a partner in Betterboards. She is an accountant and a Chartered Director and formerly held a number of senior management positions in Telecom Eireann, and was latterly HR Director.

She is currently Chair of Coillte plc, a member of the Civil Service Performance Review Group and National Broadband Ireland. She has held a number of non– executive roles including former Chairperson of Eirgrid plc, Board member Irish Payment Services Organisation, Public Appointments Service and Telecom Eireann (now eircom), and a member of the DCU Governing Authority.

Mr Liam Kelly: Mr Kelly is a former Director General of the Workplace Relations Commission, and has long and deep employment law and industrial relations experience in both the public and private sectors. He was directly involved in the drafting of legislation around collective bargaining rights, and minimum wage and sectoral bargaining structures. 

Ms Mary Connaughton FCIPD: Ms Connaughton is the director CIPD Ireland, a board member of the Public Appointments Service and Vice-Chair of the Retirement Planning Council. Previously, she was Head of HR Development at IBEC. Director, Graphite Human Resource Management. Partner, Emerge Consulting. Training and Development / HR Manager, Bank of Ireland Life.

Mr Ultan Courtney: Mr Courtney is currently Chairperson of the Low Pay Commission, and previously a member of the Public Service Pay Commission. He was appointed to the Board of CIÉ and as Chairman of Bus Átha Cliath in September 2014. He has wide experience in the Human Resources and Industrial Relations field. Mr Courtney is Managing Director of his own consultancy business and previously held positions in C&C Group Plc, Superquinn, Waterford Foods and IBEC. He holds a Degree in Economics, an M.A. from Trinity College Dublin and numerous qualifications in the areas of business strategy, employment law, mediation, arbitration and corporate legal governance.

  1.             End of Term Arrangements

The IRP made a number of recommendations in relation to terms and conditions of senior civil servants. This was in order to enhance consistency, clarity and transparency for all stakeholders.  

Government has agreed the a number of changes to the term length and end of term arrangements for Secretary General posts and Heads of certain Civil Service Offices at Secretary General level: 

  • Confirming a seven-year term, and agreement to a possible extension of up to a further two years, for a maximum of nine years subject to Government agreement.
  • On completion of this term, and as set out in the draft Heads of Bill published today:
    1. Appointment to a role at Assistant Secretary grade or (where relevant) at the grade level that they occupied immediately prior to their appointment as Head of Department, whichever is the higher, at the appropriate remuneration for this grade, or
    2. A one-time end-of-term payment equivalent to up to one year’s salary*.
  • In addition, Government may appoint a Secretary General at the end of their term into a post at equivalent level for a period of up to five years where it is considered appropriate. This post would be outside the Civil Service Departments and Offices encompassed above.  

  

*The end-of-term payment of up to one year’s salary is in line with current policy and was found by the IRP to be appropriate. 

As noted in the IRP Report, this is in line with the restrictions on employment put in place by the Standards in Public Office (SIPO) Civil Service Code of Standards. Designated officials under the Civil Service Code of Standards and Behaviour, which includes Secretaries General, are prohibited for a period of 12 months from taking up certain employment or contracts. This is where “the nature and terms of such appointment or engagement could lead to a conflict of interest…”

This end-of-term payment will amount to either one year’s salary or a pro-rata value scaled to minimum pension age, whichever is the lesser. Where the individual is at or above their minimum retirement age superannuation benefits will be payable but no end of term payment will be made.  

ENDS

Minister Donohoe’s fast accruals pension policy to facilitate increased retirement ages for uniformed public servants

The Minister for Public Expenditure, NPD Delivery and Reform, Paschal Donohoe has today (Tuesday) provided his support for retirement age increase measures, which will assist in recruiting and retaining valuable expertise in the uniformed services. 

Proposed increases to the mandatory retirement ages of uniformed public servants will be facilitated under the Department’s fast accrual pension policy, which will provide the option to members to remain in service if they choose to do so. 

The Department conducted a comprehensive analysis to examine the issue of mandatory retirement age increases and the fast accrual pension terms which apply to uniformed public servants. This work was assisted by the returns provided by the Departments of Defence, Justice and Housing, Local Government and Heritage. Officials in the Department analysed over 20,000 individual data records relating to this uniformed group to arrive at the adopted policy approach. 

Under the changes being made to the fast accrual policy framework, fast accruals will be facilitated until age 60; if an individual remains in employment beyond age 60, their pension accrual reverts from a fast accrual to a standard accrual basis. 

The policy will allow for increased mandatory retirement ages to be adopted in the uniformed services and aims to address operational need in an equitable and sustainable manner. 

The Minister will prepare legislation for inclusion into a suitable legislative vehicle to amend the Public Service Superannuation (Miscellaneous Provisions) Act 2004 and the Public Service Pensions (Single Scheme and Other Provisions) Act 2012  in order to facilitate an increase in the mandatory retirement age (MRA) in the uniformed services (An Garda Síochána, Prison Officers, Full-time firefighters, Defence Forces) within the context of the Department of Public Expenditure, NDP Delivery and Reform’s fast accrual pensions policy. 

Minister Donohoe said: “In recent years, there have been a number of requests to increase mandatory retirement ages for uniformed public servants. Changes in retirement ages are a matter for the line Minister. In the context of increases to mandatory retirement ages, it is my role as Minister for Public Expenditure, NPD Delivery and Reform to sanction the impact to pay and pensions.

“I fully support increases to the retirement ages in the uniformed services. The changes proposed by the respective Ministers, facilitated by my Department will enhance the options available to members of the uniformed services, and allow them to remain in service for longer if they choose to do so.

“People are living longer, healthier lives and providing additional certainty in terms of retirement ages in the uniformed services is timely and appropriate. I fully support increases to the retirement ages in the uniformed services and the Department’s fast accrual policy will enable this.”

  

ENDS

Tax receipts steady in February; public expenditure reflects Government priorities

  • Today’s Exchequer figures show that tax revenues to end-February were €12.0 billion, 5½  per cent above the same period last year;
  • Income tax receipts amounted to €5.3 billion to end-February, up by €0.3 billion or 5.7 per cent on last year;
  • Total gross voted expenditure to end-February amounted to €15 billion, €2.7 billion or 22 per cent above the same period in 2023 and €148 million or 1 per cent above profile;
  • An Exchequer deficit of €0.1 billion was recorded to end-February. This was an improvement of c. €2½ billion on last year, but this is driven by the transfer to the National Reserve Fund in February 2023.

 

Tax receipts were €12.0 billion to end-February, up by €0.6 billion or 5½ per cent on the same period last year, driven by growth in income tax, VAT and excise duties. 

At €5.3 billion to end-February, income tax receipts remain steady, up by €0.3 billion or 5.7 per cent on 2023.

February is a non-VAT-due month and receipts collected were accordingly modest. Cumulatively, receipts to end-February stand at €4.3 billion, up by €0.2 billion or 4.8 per cent on last year.

At €0.6 billion in the period, corporation tax receipts are down slightly on last year. However, there have not yet been any significant payment months for this revenue stream.

Total gross voted expenditure to end-February amounted to €15 billion, €2.7 billion or 22 per cent above the same period in 2023 and €148 million or 1 per cent above profile. Gross Current Expenditure is above profile by €204 million or 1.5 per cent and €2.3 billion or 20 per cent up on last year. This reflects higher investment announced in Budget 2024 across a range of priority areas and an additional pay day in the first two months of 2024 compared to 2023. Gross Capital Expenditure is up by €381 million or 54.8 per cent on last year reflecting the ramping up of the National Development Plan. 

An Exchequer deficit of €0.1 billion was recorded to end-February, up by almost €2½ billion on end-February 2023. However, this is due to a technical factor: €4 billion was transferred to the National Reserve Fund in this period last year, which reduced the Exchequer balance by the same amount. When this is accounted for, the underlying position for the period is a deterioration of some €1½ billion on last year, with increased public expenditure offsetting growth in tax revenues.

Commenting on the figures, the Minister for Finance, Michael McGrath T.D. said: 

“Today’s figures largely represent the continuation of trends observed last month and towards the end of last year. The 7% increase in tax revenues in February compared to the same month last year is to be welcomed, and is further evidence in particular of the strength of the labour market. The 5.5% growth in tax revenues across the first two months of the year is broadly consistent with our forecast on Budget day. However, I would emphasise that it is too early at this stage in the year to draw any conclusions about the trajectory of tax receipts, particularly before the key corporation tax payment months. The coming months will provide a firmer indication of the pattern of tax receipts across the year. Overall, our economy has proven to be remarkably resilient against the backdrop of significant external uncertainty. In a more shock-prone world, it is essential that we maintain our public finances on a sustainable footing: this is the best way to ensure that we are in the strongest possible position to respond to external challenges. Work on drafting the legislation to provide for the Future Ireland Fund and the Infrastructure, Climate and Nature Fund is now at an advanced stage, and I look forward to bringing it to government shortly.”

The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe T.D. said:

“Expenditure of €15 billion to end February demonstrates the continued substantial investment across a range of public services. Due to calendar timing, a portion of the 22 per cent year-on-year increase can be attributed to an additional February payment date for certain schemes and payroll across public sector workforce. Overall, it reflects the Budget 2024 approach focused on delivering our economic, social and climate ambitions. It also reminds us, at this early point in the year, of the necessity of adhering to spending plans so that we can properly manage our finances and ensure that services are provided in as timely and efficient way as possible.

“Capital expenditure is over €380 million higher at the end of February this year than at the end of February in 2023. This is almost a 55 per cent increase in capital expenditure year-on-year. This reflects the ongoing delivery of National Development Plan including progress on the Government’s ambitious housing targets with an increase in capital spending in the Department of Housing, Local Government and Heritage of 166 per cent in comparison to the first two months of 2023.”

 

ENDS

 

Fiscal Monitor February 2024

1,200 new Irish citizens attend Citizenship Ceremonies in National Concert Hall Dublin

1,200 new Irish citizens will be granted Irish citizenship in two ceremonies taking place at the National Concert Hall in Dublin today.

 

The Ceremonies will see applicants from 105 countries around the world and living in 31 counties on the island of Ireland being conferred as Irish citizens.

 

Minister Paschal Donohoe and Minister of State James Browne will attend the ceremonies and are looking forward to meeting as many of the new citizens as possible.

 

Speaking ahead of the ceremonies, Minister Helen McEntee said,

 

“Citizenship ceremonies are always a joyous celebration of what it means to be Irish. I would like to warmly congratulate and welcome our newest citizens on this milestone in their lives.

 

It is particularly apt that they will begin their journey as Irish citizens at the National Concert Hall as it is a building that is steeped in Irish history. It is the original site of University College Dublin and even hosted the Dáil debates on the Anglo-Irish Treaty in early 1922.

 

I want to wish nothing but the best to all those who become a citizen of this nation, and join the many others who have come here and are making such a significant contribution to our culture, economy and society.”

 

The Presiding Officer at both ceremonies is retired Judge Paddy McMahon, who will administer the Declaration of Fidelity to the Irish Nation and Loyalty to the State.

 

The new Irish citizens will undertake to faithfully observe the laws of the State and to respect its democratic values.

 

New Irish citizens are contributing to a diverse and inclusive workforce, bringing a range of skills and talents that enhance the overall capabilities of the labour market and economy.

 

Over 10% of those receiving their citizenship are working in the healthcare sector across Ireland.

 

Speaking ahead of the first Ceremony today, Minister Donohoe said,

 

“Ireland has always had a strong culture of welcoming new people and I am delighted to be able to attend this morning’s ceremony so that I personally can welcome our newest citizens.

 

Today marks the end of one journey and the beginning of an exciting new one for them.  By sharing their own unique cultures and traditions with us, our newest citizens become part of our communities and we are all the better for it.

 

I also want to acknowledge the value and necessity of immigration to support Ireland’s strong economy and how it benefits our overall society.”

 

 

Minister Browne ahead of attending this afternoon said:

 

“It is my pleasure to attend the Citizenship ceremony today.

 

As a nation that over centuries saw so many Irish people emigrate to find safety or work, the Irish people understand what it means to be a migrant, to seek a safe haven, to lay roots and to find a new home.

 

I give my best wishes to our new citizens and to their families as they embark on the next steps of their lives in Ireland and I look forward to meeting as many of them as possible today.”

ENDS

 

Additional information

Citizenship ceremonies were first introduced in 2011 in order to mark the occasion of the granting of citizenship in a dignified and solemn manner. Since Citizenship Ceremonies were first introduced, there has been a total of 175 Ceremonies (inclusive) with people from over 180 countries receiving their certificates of naturalisation.

To date approximately 175,000 people have received Irish citizenship since 2011.

The figure of 175,000 includes the attendees at the February Ceremonies & applicants who received citizenship via the Declaration process introduced in response to the COVID pandemic, as well as minors who are not required to attend a Ceremony.

 

Year Date Ceremony No of Ceremonies Total Attended
2023 10-Mar-23 RDS 2 1,362
2023 19-Jun-23 INEC – Killarney 2 1,588
2023 20-Jun-23 INEC – Killarney 2 1,908
2023 02-Oct-23 Convention Centre 3 2,661
2023 18-Dec-23 Convention Centre  3 2,995
2023 19-Dec-23 Convention Centre  3 2,758
      15 13,272

 

 

Order Top 10 Nationalities # Applicants
1 India 243
2 Brazil 99
3 United Kingdom 81
4 Romania 76
5 Philippines 74
6 Poland 61
7 Pakistan 59
8 Nigeria 56
9 China (Including Hong Kong) 52
10 United States Of America 35

 

County # Applicants
Co. Antrim 2
Co. Armagh 1
Co. Carlow 9
Co. Cavan 10
Co. Clare 17
Co. Cork 116
Co. Derry 3
Co. Donegal 18
Co. Down 4
Co. Dublin 642
Co. Fermanagh 1
Co. Galway 42
Co. Kerry 18
Co. Kildare 77
Co. Kilkenny 13
Co. Laois 23
Co. Leitrim 4
Co. Limerick 47
Co. Longford 8
Co. Louth 59
Co. Mayo 6
Co. Meath 58
Co. Monaghan 7
Co. Offaly 4
Co. Roscommon 5
Co. Sligo 10
Co. Tipperary 21
Co. Tyrone 0
Co. Waterford 26
Co. Westmeath 20
Co. Wexford 19
Co. Wicklow 28
Total 1318

 

 

*based on total number of invitees. Where applicants have answered not attending, further invitations have issued.

 

Minister Donohoe welcomes the publication of the fourth Open Government Partnership National Action Plan

The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe has welcomed the publication of the fourth Open Government Partnership National Action Plan 2023-2025. The Open Government Partnership is based on the principle that an open government is more accessible, more responsive, and more accountable to its citizens, which is essential for democracy. 

The Open Government Partnership is a global initiative launched in 2011. More than 70 countries and over 100 local governments are members of the Open Government Partnership working alongside thousands of civil society organisations. Ireland became a member in July 2014, and has published three previous National Action Plans to strengthen open government. 

Since joining the Open Government Partnership Initiative in 2014, Ireland has made major achievements including the creation of Open Data, legislation to regulate lobbying, protect whistle-blowers and reform of the Freedom of Information regime.

The fourth National Action Plan was co-created with representatives from civil society. A Round Table group was established with membership from civil society and Government departments. They worked together, drawing on submissions from the public and the wider community and voluntary sector, to create a series of commitments that form the fourth National Action Plan. The commitments promote transparency, accountability, participation and openness. 

 

Commenting on the publication of the fourth National Action Plan, Minister Donohoe said: 

 

“As a Government we have made a commitment to continue and reinvigorate participation in this important partnership. This work is more important than ever in the context of threats to democracy such as misinformation and disinformation, global instability and threats to social cohesion. Improving the relationship between people and their Government has long-term benefits for everyone.

“I would like to thank all those who have been involved in the development of this Action Plan. These include the Open Government Partnership Round Table, the Secretariat, civil servants, and the many individuals, communities and civil society organisations who have given their valuable insights to make this an Action Plan that reflects the issues at the heart of Open Government in Ireland.”

 

Antóin Ó Lachtnáin, Co-Chair Civil Society said: 

 

“We see this plan as a further step on the path to making government more transparent, accountable and responsive. We welcome the Government’s commitment to finding ways to more fully engage citizens about the decisions which affect them”.

 

The National Action Plan will be delivered through the leadership and collaboration of the five Government Departments who participate in the Round Table. 

NOTES

The Department of Public Expenditure, NDP Delivery and Reform is leading Ireland’s Open Government Partnership programme of work on behalf of the Irish Government.

The Programme for Government includes a commitment to continue and reinvigorate participation by the public sector in the Open Government Partnership.

A multi-stakeholder forum, the Open Government Round Table, has been established to promote the active engagement of citizens and civil society.

The current members of the Round Table are from the following organisations: 

Government Departments: Department of Public Expenditure, NDP Delivery and Reform, Department of the Taoiseach, Department of Justice, Department of Rural and Community Development, Department of Housing, Local Government and Heritage, Department of Children, Equality, Disability, Integration and Youth. 

Civil society organisations: Digital Rights Ireland, Think-Tank for Action on Social Change (TASC), The Wheel, Change Agency, Innovative Communities, Irish Rural Link.

 

ENDS

Opening statement to the Joint Committee on Environment and Climate Action

A Cathaoirleach, 

I would like to begin by thanking you and the Committee for the invitation to speak to you today. I am accompanied by Ken Cleary and Patrick Moran from the Climate Division in the Department of Public Expenditure, National Development Plan Delivery, and Reform. I look forward to engaging with members and discussing the role of my Department in achieving the sustainable transition of society and our economy in line with our national climate objectives.

We face a number of threats to our future prosperity but none more pressing than climate change. There are no longer any serious arguments about the necessity to eliminate greenhouse gas emissions. The only question is how best to do so. 

In particular, how can we balance the requirement to act quickly, while also providing for a growing population and maintaining an economy that can support the investments that need to be made? Within this challenge, how we will deal with the inevitable trade-offs, some of which are already rising to the forefront of public debate, is critical.  

This Government has, I believe, grasped this nettle by ensuring there has been an approach to incremental and permanent decarbonisation that is both strategic and sustainable. We are seeing the fruits of this policy reflected in outcomes. Last year, 39% of our electricity came from renewable sources, reaching 52% in December. In addition in 2023, almost 40,000 electric vehicles were sold, heat pumps were installed in more than 90% of new homes and nearly 50,000 homes were retrofitted. All of this contributed to a likely fall in emissions of between 4 and 5%. 

However, there is much more to do. New policies are needed and we must redouble our efforts to accelerate the implementation of those policies we have already committed to. 

In this regard, Cathaoirleach, I am an optimist. We have the technological solutions today to achieve most of the decarbonisation we need by 2050. It is now a matter for policy makers to determine how we can implement the required changes in a manner that is fair, equitable, cost-effective, and brings society with us rather than fostering dissent. 

This is easier said than done. The work the Department of Public Expenditure, National Development Plan Delivery, and Reform is engaged in will, I hope, help us in this endeavour. I would like to outline some of our key climate achievements and give you a flavour of my Department’s work plan for the coming years. 

The Climate Act & Climate Action Plan

Before I do so though, it is worthwhile setting out the legislative framework that we operate under. The Climate Action and Low Carbon Development Act has created a rigorous system for achieving our national climate ambitions. It aligns responsibility for reducing emissions with resources and wider sectoral responsibility. It ensures accountability, with the relevant Ministers required to report to this Committee, and creates independent oversight through the statutory Climate Change Advisory Council. 

The Act also obliges Government to achieve the best possible value for money consistent with the sustainable management of the public finances and to maximise, as far as practicable, the net benefits to society taking into account the impact of greenhouse gas emissions. 

National Development Plan 

Central to the achievement of our climate targets in this manner are our ambitious public investment plans. The €165 billion National Development Plan is the largest and greenest capital plan in the history of the State. It will see capital investment in Ireland reach some of the highest levels in the developed world. The investments planned provide for the decarbonisation of society, while meeting the needs of 1 million additional people by 2040. 

In Budget 2024, I announced that it will be supplemented with a further €2.25 billion from windfall corporation tax receipts over 2024 to 2026. 

In 2026 and beyond, the Infrastructure, Climate and Nature Fund will see a further €3.15 billion State investment in projects that reduce greenhouse gas emissions, boost biodiversity and improve water quality. 

It is the effective implementation of policies that blend regulation, behavioural change and taxation measures with direct Government investment that will lead to the achievement of Ireland’s climate objectives in a manner consistent with the Climate Act. This means using Government funds to leverage and drive investment from businesses and households in support of these objectives. 

Government policy on energy efficiency is a tangible example of this innovative use of Government funds. A low-cost loan scheme will be launched in the coming weeks that will allow more homeowners to make the investments needed to make their homes warmer, more comfortable, and less exposed to changes in energy prices. 

This is complemented by the Warmer Homes Scheme, which offers energy efficiency upgrades free of charge to the homes of those most in need. The Government’s policy on energy efficiency has been designed to be comprehensive and socially progressive. It would not be possible without our Carbon Tax regime.

Carbon Tax Allocations

As Minister for Finance, I introduced the legislation which put into effect this Government’s commitment to increasing the Carbon Tax, providing certainty to households and businesses and encouraging low-carbon investment decisions to be made today rather than postponed. 

Our policy, unlike that of any other EU Member State, provides a legislated schedule of annual Carbon Tax increases, with every additional euro raised recycled to generate the resources we need to decarbonise the economy.   

I allocated €788 million of additional Carbon Tax receipts as part of Budget 2024, bringing the total amount funding to support climate action since 2020 to €2.2 billion. This funding is paying for our energy efficiency schemes, for agri-environmental schemes to allow our farmers to reduce their emissions and, critically, will address fuel poverty and support the least well off in society. 

Analysis has consistently demonstrated that those households on the lowest incomes are materially better off as a result of the Social Protection measures funded by the increased Carbon Tax than they would otherwise be. 

Infrastructure Guidelines Reform & Shadow Price of Carbon

As well as allocating funds, my Department is responsible for setting the framework that the Government uses to consider the costs and benefits of public capital investment decisions. I published the latest version of these Infrastructure Guidelines late last year. 

Capital investments give rise to greenhouse gas emissions, both in construction and in the ongoing operation of the asset. Given the enduring impact of greenhouse gas emissions, it is vital that the Infrastructure Guidelines take into account the emissions impact of investment decisions. Every project is required to quantify the greenhouse gas emissions that it may give rise to and a shadow price of carbon is applied to these emissions. 

My officials have worked with the Marine and Renewable Energy Institute in UCC to undertake modelling on a range of price scenarios to update the shadow price of carbon to better align with our climate targets. Over the past nine months we have piloted the application of these new values across a range of appraisals, with a range of Departments, including in the low-cost loan scheme I mentioned. 

My Department is currently in the final phase of consideration of the new values and I hope to be in a position to make a final decision in the coming weeks. I think it is worth reiterating that improving our economic appraisal tools does not determine policy choices, but better informs them. An accurate shadow price of carbon ensures the cost of emissions are properly considered when evaluating which projects are of overall benefit to society. It also prompts lower carbon choices in project design and ensures that the Government recognises cost effective opportunities to make investments that can reduce emissions. 

Green Budgeting

This appraisal applies to new investments. My Department is also working on ‘green budgeting’ methodologies that can provide information to the public and policy makers on the impact of all spending decisions, including those that have already been taken, with a view to improving outcomes. 

Since I announced Ireland’s introduction of green budgeting reforms in 2018 we have made significant improvements year-after-year. Ireland is considered to be at the forefront of international developments in this space. This is confirmed in the latest OECD survey which, as of 2022, considers Ireland the second highest performer in green budgeting out of all OECD countries. 

My Department also chairs the OECD’s Paris Collaborative on Green Budgeting and is chairing the EU Commission’s annual green budgeting conference taking place in Brussels next month.  

We introduced the latest steps in our Green Budgeting initiative in December 2023. Monitoring of climate and environment related expenditure was extended to include all six of the EU Taxonomy for Sustainable Activities criteria. We now also capture expenditure allocations which may have unfavourable effects on climate and environmental outcomes. 

Green budgeting initiatives and the wider performance framework play an important role in enhancing the level of accountability and transparency surrounding Government spending on climate action and the environment. This approach also generates insights that can be used to inform the evolution of climate policy, making sure that climate action is integrated within the budgetary process. 

Public Sector Decarbonisation

Alongside my Department’s commitments under the Climate Action Plan, I also have a role in supporting emissions reductions in the public sector. While decisions on resource allocation within a sector can only be made by the Minister responsible for the sector in question, my Department plays an active role on the Heat and Built Environment Taskforce, the Implementation Focus Group and Public Sector Working Group of that Taskforce.

Government Procurement and the Circular Economy

No less important is my Department’s work, through the Office of Government Procurement, in ensuring our public services operate in line with our climate objectives. This includes work on the Capital Works Management Framework to deliver public sector construction procurement reform, financial appraisal of projects based on total cost of ownership, including environmental considerations, and the promotion of green public procurement. These all seek to ensure goods, services and works with a reduced environmental impact throughout their life cycle are prioritised, and public services can be delivered to meet the needs of a decarbonised society. 

Concluding Remarks

In closing, a Cathaoirleach, it bears reflecting on the scale of the decarbonisation challenge that we face, and the concerted efforts needed to address it.

I have described some of what Government is doing to achieve this and, in particular, a few of the steps that my Department is taking. These represent only a portion of the activities we are engaged in. 

Fundamentally, we are managing the growth in public expenditure on a sustainable basis, we are improving the evidence and analytical base to allow better informed policy decisions to be taken, and we are setting the frameworks to support investment decisions that incorporate climate considerations.  

With many of the critical decisions already taken, our focus must be on implementation.  We know the challenge that faces us, but we also know the benefits that meaningful climate action can bring and the implications of a failure to act. 

Thank you for your attention. I welcome your questions on the specifics of my role and that of my Department in supporting a sustainable transition and I look forward to an engaging discussion.

ENDS

Minister Donohoe announces Government approval of new Public Service Agreement 2024 – 2026

Minister for Public Expenditure NDP Delivery and Reform, Paschal Donohoe TD, has today (Tuesday, 13th February 2024) obtained Government approval of the Public Service Agreement 2024 – 2026. 

In welcoming the approval of Government, Minister Donohoe noted that the terms of the proposed Agreement were the outcome of a complex and difficult negotiation process.  

The Agreement runs for two and a half years and the total cost amounts to €3.6 billion,

In total, the Agreement provides for increases of 10.25% over a two and a half year period. This is made up of general round increases totalling 9.25%, as well as a provision for a Local Bargaining mechanism equivalent to 1% of the basic pay cost.

 

A key element of the Agreement is that industrial peace will be maintained and that there will be no additional cost increasing claims, other than those provided for in the Local Bargaining Mechanism.

 

Public service unions and associations are expected to ballot on the proposals in the coming weeks, the outcome of this ballot should be known by the 25th March

Minister Donohoe said:

“I welcome Government approval today for the new Public Service Agreement 2024 to 2026. I believe that the Agreement seeks to achieve a balanced approach to public service pay that rewards the ongoing efforts of public servants, while ensuring the responsible management of public finances.

“I would like to thank the Director General and staff at the Workplace Relations Commission for their assistance in co-ordinating this challenging process. 

“Public service transformation remains a key priority for Government. The Agreement will underpin the ongoing transformation of our public services, allowing reform to continue in a collaborative and cooperative way.

“As public servants engage in ballots in the coming weeks on acceptance of these proposals, I hope they will consider all elements in the Agreement, which offers security and reward for their continued commitment to serving the people of Ireland.“

 

 

Notes for the editor:

Pay Measures

2024

  • A general round increase in annualised basic salary for all public servants of 2.25% or €1,125, whichever is greater, on 1 January 2024.
  • A general round increase in annualised basic salary for all public servants of 1% on 1 June 2024.
  • A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 October 2024.

2025

  • A general round increase in annualised basic salary for all public servants of 2% or €1,000, whichever is greater, on 1 March 2025.
  • A general round increase in annualised basic salary for all public servants of 1% on 1 August 2025.

2026

  • A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 February 2026.
  • A general round increase in annualised basic salary for all public servants of 1% on 1 June 2026.

Local Bargaining

A local bargaining instalment, equivalent to 1% of the basic pay cost, on 1 September 2025.

 Ends