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TAOISEACH SIMON HARRIS has said Ireland will work with the Trump administration, as the country did during his previous term in office, but should prepare for the impact of his presidency on the economy and Ukraine.
Speaking to reporters in Budapest ahead of a European Council meeting, Harris said, as far as he knows, his office has requested a phone call with US president-elect Trump.
“I hope to be in a position to speak to president-elect Trump and to congratulate him,” the Taoiseach said today.
“President Trump has won the election in the United States decisively, and obviously the European Union and Ireland will now work with the democratically elected president-elect of the United States.”
Harris noted that US elections “are always consequential beyond their own borders”, and both Ireland and the EU will “assess what President Trump may do” – and what impact this could have on the economy and European security.
He said European leaders will discuss “how we can best prepare to deal with the new administration”, adding this will likely involve setting money aside for any potential shocks to the economy.
“One of the very reasons we have put money aside into funds to protect for the future is to make sure that if there is any shock to the Irish economy in the years ahead, or to the European economy, or any sort of transatlantic trade shock, that actually there is a buffer in place in the Irish economy.”
When asked how concerned he is about a second Trump presidency, Minister for Public Expenditure Paschal Donohoe echoed the sentiment of needing to put money aside.
He told reporters in Dublin he will challenge anyone who argues that existing government surpluses should be spent, saying they act as an “insurance policy” for the years ahead.
I’ve been arguing about the need not to spend all the money that is available to us each year, to set some of that aside to be able to deal with the unforeseen events around the corner.
He argued this was the right approach when it came to the Covid-19 pandemic and said “surely it will be shown to be the right approach as we now enter into a period of very big change within the global economy”.
“We are now in a situation that for last year, we ran a budget surplus in excess of €8 billion.
“The same will happen again this year, and this money will be absolutely vital to help us deal with any changes that could occur in the years ahead due to changes in global trade and in global taxation.
“And for that reason, it underpins the need to continue to build budget surpluses in the future,” Donohoe added.
Concerns have been raised of late that a reworking of US tax law could eventually lead to a major drop in Ireland’s corporate tax take.
When asked if he is concerned that Trump’s proposals to overhaul tax legislation could led to a large outflow of foreign direct investment from US companies currently based in Ireland, Harris said no.
“We obviously need to continue to monitor all of this closely, and we do need to be aware that the risk of a transatlantic trade shock has now increased.”
The Fine Gael leader said companies locate in countries “for many reasons, not just tax”.
“Ireland has always offered not just a competitive tax offering, and not just worked at a global level in terms of settling those tax issues in terms of rates, but we’ve also offered talent.
We’ve also offered access to the European Union. We’ve also offered being a country that can bridge the Atlantic in terms of the US and the EU.
“And I think all of those things remain a reality after the outcome of the presidential election.”
Speaking about the impact of a Trump presidency on the war in Ukraine, Harris said more investment in defence and security is needed across Europe including Ireland.
“Just because you’re militarily neutral, it doesn’t mean that you’re immune from those risks.”
He denied this will impact Ireland’s military neutrality, saying that “is not up for discussion”.
Ukrainian President Volodymyr Zelenskyy is due to attend today’s European Council meeting and Harris said he is looking forward to speaking to him directly.
“Europe has to stand with Ukraine for as long as it takes. We cannot have a situation where a country can, through aggression, through illegal war, annex people’s territories,” Harris stated.
He said the EU and other leaders such as British Prime Minister Keir Starmer will work together in efforts “to chart a way forward to bring peace to Ukraine”.
Contains reporting by Jane Matthews
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I think we are approaching the perfect storm in Ireland. Everything is falling apart all at once. Property prices, rents, underpaid public workers now all striking at once. Increasing childcare costs, no support for the government… what a time to be in FG!!
Public sector needs reform with the disbanding of unions and professional contracts for our teachers and guards that are not linked to tenure. On the housing front we need high rise in certain areas of Dublin.
What’s with you and teachers? You have an agenda as you’ve nothing good to say on them or their profession. Some of the largest class sizes in Europe and new entrants paid pittance, that together with rising house prices and ridiculous rents means a husband and wife teacher or guard cannot even think of buying in Dublin or the commuter belt and hope to start a family. But go ahead, those bad teachers and your agenda.
Underpaid Public workers?
Hi rise is that because there is land shortage or just maximising developers pockets
James, out of curiosity which ” certain” areas in Dublin are most suited to high rise buildings ?
Hi=high
@Catherine Mc: The areas that aren’t anywhere near him?
Daisy, that is what I was thinking.
James, you must be a secondary school drop out. Don’t be ashamed of it.
@Shawn, THEIR INCREASING WORKLOAD WOULD ONLY MEAN ONE THING..,YES THEY’RE INDEED UNDERPAID!
Let’s keep the recovery going.
I do wish people would stop coming out with ‘The government must do/act……’. The government are not going to do a damned thing except throw out some soundbites and bide their time til they’re thrown out, FF will come in, do the same (as in nothing), get thrown and it’ll be FGs turn again. And so it goes…
James Darcy: yeah, lets make conditions even worse for workers in your thatcherite dreamland. That’ll solve homelessness alright
I have been looking for a place for someone with 2 kids. She can not go over 1,400 that’s the max that she can go. No where to be found. The ones that she has looked at and applied for have gone or they wont take rent allowance. Horrible thinking that you and your kids are going to be homeless. Great place we live in (sigh)
All our professional people are leaving this country – Our Garda, our teachers, our doctors and nurses Ireland will be even more strained in the coming years that we will have no one to fill these positions and we won’t have to worry about unions or pay structures.
You’ve just got to love Ireland!
Successive governments have failed this country. Nothing has changed over the last 10 years. What an opportunity we had to redistribute the wealth, but successive FF and FG governments facilitated making the rich richer and the poor poorer. The current govt are on the payroll of lobbyists too. Ireland is no better off than it was in 2006. Despite whatever spin they tell you, the future is more uncertain than ever…..
Someone is making a fortune on the backs of others.
Ireland is a failed society where 1 income is insufficient to put a roof over your head.
Call for Referendum on “Right2Home” in Ireland … amend Constitution like Germany.
https://www.change.org/p/referendum-on-right2home-in-ireland
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