{"id":189178,"date":"2025-06-16T14:20:12","date_gmt":"2025-06-16T14:20:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/189178\/"},"modified":"2025-06-16T14:20:12","modified_gmt":"2025-06-16T14:20:12","slug":"failure-of-eu-us-trade-talks-would-have-immediate-ramifications-for-budget-taoiseach-warns-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/189178\/","title":{"rendered":"Failure of EU-US trade talks would have immediate ramifications for budget, Taoiseach warns \u2013 The Irish Times"},"content":{"rendered":"

The failure of EU-US trade talks would have immediate ramifications for the upcoming budget<\/a>, Taoiseach Miche\u00e1l Martin<\/a> has warned.<\/p>\n

\u201cThere\u2019s no doubt that the tariff situation does create a completely different context leading into this budget,\u201d Mr Martin said at the National Economic Dialogue event in Dublin.<\/p>\n

US President Donald Trump <\/a>has threatened to impose 50 per cent tariffs<\/a> on imports from the European Union<\/a> (EU) but has put a stay on the measure until July 9th to allow for talks. <\/p>\n

\u201cUntil it\u2019s resolved and until certainty is restored then it will be challenging in terms of the signing of a new budget,\u201d Mr Martin said.<\/p>\n

Ministers have raised the prospect of tax cuts for workers (promised in the Programme for Government) being dropped if the economic situation deteriorates.<\/p>\n

\u201cEurope is working very hard with its counterparts in the US to get a negotiated deal,\u201d the Taoiseach said.<\/p>\n

Brussels negotiators hope that by agreeing to a 10 per cent US tariff on all EU exports, they can avoid higher tariffs on cars, medicines, and electronics.<\/p>\n

A major concern for Ireland would be if US tariffs are widened to include pharmaceuticals, which account for up to 60 per cent of Ireland\u2019s exports.<\/p>\n

Separately Mr Martin hinted that providing tax breaks for developers in the budget in a bid to boost the supply of apartments was still on the cards.<\/p>\n

[\u00a0VAT rate for hospitality to be cut in budget, Harris saysOpens in new window<\/a>\u00a0]<\/p>\n

\u201cI don\u2019t want to speculate in relation to taxation measures. Certainly on the National Development Plan, on the public expenditure side, very significant priority is being given to the housing issue,\u201d he said.<\/p>\n

\u201cWe\u2019re looking right across the board about how we can get more houses built faster,\u201d he said.<\/p>\n

\"\"Will rent reform make building apartments viable? <\/p>\n

\u201cThere was a need to create a certainty in policy to bring private sector investment,\u201d he said, noting \u201cthe State can\u2019t do it all\u201d. <\/p>\n

The Taoiseach also defended the rapid rise in spending in recent budgets, which the Irish Fiscal Advisory Council (Ifac) has flagged as a major risk to the public finances. <\/p>\n

\u201cWe\u2019ve had unprecedented events that have impacted recent budgets, Covid-19 in particular, and the inflationary spiral that followed\u201d and the influx of Ukranian refugees, he said.<\/p>\n

\u201cWe\u2019ve had increased population growth on a significant scale over the last number of years, combined with infrastructural deficits (that) means there has to be a degree of catching up,\u201d <\/p>\n

\u201cThat said expenditure is high,\u201d Mr Martin said, noting \u201cthe important thing was to get a sustainable fiscal framework that balances revenue with expenditure\u201d.<\/p>\n

In a report last week, Ifac warned that public spending was rising much faster than planned and that this was the result of \u201cpoor budgeting\u201d on the Government\u2019s part<\/p>\n

It said current spending was up 6 per cent so far this year, well above the 1.4 per cent uplift outlined in the Budget.<\/p>\n

In his address to the plenary session, Mr Martin warned that rising economic nationalism and the significant increase in uncertainty would \u201cunavoidably weigh on growth over the coming period\u201d.<\/p>\n

\u201cAs a small, open economy, there are many risk factors outside of our control,\u201d he said.<\/p>\n

\u201cInternational decisions on trade policy will potentially harm our economy and those of our main exporter partners, both directly and indirectly,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"The failure of EU-US trade talks would have immediate ramifications for the upcoming budget, Taoiseach Miche\u00e1l Martin has…\n","protected":false},"author":2,"featured_media":189179,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[1194,32,2000,299,5187,1699,6334,77610,681],"class_list":{"0":"post-189178","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-budget","9":"tag-donald-trump","10":"tag-eu","11":"tag-europe","12":"tag-european","13":"tag-european-union","14":"tag-housing-crisis","15":"tag-irish-fiscal-advisory-council","16":"tag-micheal-martin"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114693486981861900","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/189178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=189178"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/189178\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/189179"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=189178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=189178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=189178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}