Cabinet to hear plan to expedite capital projects to shield Ireland from tariff repercussions
The minister for public expenditure, Jack Chambers, will on Tuesday bring a memo to Cabinet on plans to review and update the National Development Plan. File Picture: Leah Farrell / © RollingNews.ie
Stock markets across the world have fallen sharply as Ireland and the EU braces for Donald Trump's "Liberation Day" trade tariff announcement.
A plan to rapidly expedite a number of large scale capital projects across housing, the energy grid, road infrastructure, and water services in a bid to ensure Ireland remains competitive is now being worked up by the Government.
The minister for public expenditure, Jack Chambers, will on Tuesday bring a memo to Cabinet on plans to review and update the National Development Plan (NDP), which has taken on a greater significance in the context of Wednesday's expected trade tariff announcement and the impact it could have on the Irish economy.
Mr Chambers will tell ministers that the best way to safeguard the country against the negative repercussions of tariffs, which are now expected to be between 20% and 25%, is to focus investment on capital projects and to tackle infrastructural deficits.
It is understood he will write to his Cabinet colleagues this week asking that they put forward two or three large projects that can be delivered on time and on budget — with funding coming from the Apple tax ruling, the Climate and Nature Fund, as well as the proceeds of the AIB share sales.
Along with pumping billions of euro into infrastructural projects, the Government is expected to focus on diversifying into other markets beyond the US.
Taoiseach Micheál Martin has signalled that there is now a need to “expand our presence”, particularly calling for the Canadian-EU trade deal (Ceta) to be ratified through legislation.
Tánaiste Simon Harris will also bring a memo to Cabinet on Tuesday outlining the potential economic impact of US tariffs on the Irish economy.
Mr Harris is due to tell ministers that Ireland must take a “calm and measured” approach in the days ahead.
One Coalition source said that, if sectoral tariffs are introduced, Mr Harris will seek to form an “alliance” with other EU countries that are significantly exposed due to their pharmaceutical industries.
Stock markets in Dublin, London and Frankfurt have tumbled along with Asia-Pacific markets in what investors are calling a "Trump slump" ahead of Wednesday's expected announcement from the US president.
Speaking on Air Force One, Mr Trump suggested that new tariffs would hit “all countries”.
"You'd start with all countries," he told reporters. "Essentially all of the countries that we're talking about."
In Toyko, Japan’s Nikkei index lost 4% on Monday and South Korea’s Kospi fell 3%.
The wave of selling swept into European markets as well — Britain's FTSE 100 fell 0.9%, Germany’s Dax was down 1.3%, and France’s Cac lost 1.6%.
On Monday, enterprise minister Peter Burke met the two coalition leaders to provide an update on a new competitiveness action plan that will be fast-tracked.
Mr Martin said the EU must take a “strategic response” to US tariffs to prevent further retaliation from the Trump administration.
He added that Europe will maximise its leverage ahead of any negotiations.
“Ultimately, one would like to see negotiations emerge as a result of Europe’s response to the US’s imposition of tariffs and that we could get some reasonable landing zone that could enable companies and the economy to enjoy a bit of stability in some sense,” Mr Martin said.
