Global Developments

Key measures

Budget 2026 presents a strategic response to the shifting global economic and trade landscape. Minister for Finance Paschal Donohoe highlighted the increasing fragmentation of international trade, with widespread tariffs disrupting the previously near-universal commitment to free and open trade. As a small, open economy deeply integrated into global markets, Ireland faces significant challenges from these developments, which are expected to slow economic growth in the coming years.

In response, the Government has adopted a multi-faceted approach aimed at strengthening economic resilience and safeguarding jobs. Key among these measures is the allocation of €1.3 billion to the Department of Enterprise, Tourism and Employment, as announced by Minister Jack Chambers. This funding supports:

Enterprise Ireland in scaling innovation, expanding access to global markets, and creating high-quality jobs;

The Industrial Development Authority (IDA) in attracting first-class foreign direct investment to Ireland;

The implementation of Action Plans focusing on Market Diversification, Competitiveness, and Productivity. Additionally, targeted tax measures, such as enhanced Research & Development (R&D) tax credits, are designed to ease cost pressures on businesses and encourage innovation.

Who will be affected and when?

Irish exporters and businesses stand to benefit most from the Budget 2026 measures. The Government’s support aims to help these companies navigate the challenges posed by the evolving global trade environment. Businesses engaged in export activities, innovation, and market expansion should monitor the rollout of these initiatives closely.

The timing of these measures aligns with the immediate need to respond to global economic uncertainties, with funding and support mechanisms becoming available throughout the coming fiscal year.

What now?

Companies are encouraged to engage proactively with State Agencies such as Enterprise Ireland and the IDA to assess their eligibility for the new Government
supports.

Our view

Ireland’s status as a small, open, export-led economy makes it particularly vulnerable to external shocks. Budget 2026 recognises this vulnerability and sets out measures to bolster economic resilience amid growing international uncertainty. The Government’s significant investment in Enterprise Ireland and the IDA underscores a commitment to fostering innovation, market diversification, and attracting high-quality foreign direct investment-critical drivers of sustainable economic growth and job creation.

These initiatives will enable Irish businesses to adapt to shifting global trade dynamics, reduce dependence on any single market, and enhance overall competitiveness. The combination of targeted tax incentives and customs measures will also help alleviate cost pressures on businesses and consumers, supporting domestic demand.

Together, these actions reflect a proactive and balanced approach to safeguarding Ireland’s economic future. Despite external challenges, Budget 2026 ensures that Ireland remains an attractive destination for investment and a strong participant in global trade.