National Economic Dialogue Keynote Address - 16 June 2025

Good morning, Ladies & Gentlemen,

It is a pleasure to be here speaking to you today and I would like to thank Minister Donohoe, Minister Chambers, and their teams for their work in organising this event, which has become an important moment in the annual budgetary calendar.

As we look towards Budget 2026, we must ensure that it is framed to ensure Ireland remains competitive in a turbulent global economy. In that regard, it should prioritise our small and medium enterprise sector, and research and development.

The greatest challenge and strain our economy, and our society, faces remains housing and the Budget and the upcoming National Development Plan must of course have a clear focus on the allocation of resources to build more homes and the infrastructure to support communities.

While the National Economic Dialogue gathers us with a strong eye to our domestic context, we are of course an open and vibrant trading economy, and we are very much part of the wider geopolitical and global economic order of the day.

Unfortunately, the order of the current time is clearly dominated by flux and by deep uncertainty. How we respond and seek opportunities in the period ahead will shape our trajectory for the future.

Our role as a member of the European Union is of course central, not only because we are a strong voice at the table but also because we benefit greatly from our membership of the world’s largest single market economy.

While trade challenges, and particularly those associated with the US policy on tariffs dominate the headlines, I also want to talk to you today about some of the key tools at our disposal to ensure our economy reacts strongly and positively to the new landscape, namely our competitiveness and our willingness to diversify to grow our markets.

US Trade Policy and the new reality

But first to acknowledge that the events of recent months are in the process of upending structures of global trade. There has been a fundamental shift in how the world's largest economy has decided to conduct its trade policy and this impacts us all.

We must recognise both the unprecedented speed of change in the trading environment, the scope of this transformation, and the scale of the implied response by affected nations.

Trade policy is being used by the United States not merely to shape commercial relationships, but as a tool to pursue a wide range of other geopolitical and domestic policy and political objectives.

Despite the suspension of higher tariff rates announced on so-called 'Liberation Day', and notwithstanding the ongoing legal dispute arising from the US Court of International Trade ruling, Irish and EU exporters to the United States remain subject to an additional 10 per cent tariff on goods, as well as sectoral tariffs on steel, aluminium, and cars.

Together with threats of further tariffs on pharmaceuticals, semiconductors, and aircraft arising from Section 232 investigations, this represents the most serious challenge to transatlantic economic relations in generations.

I have been a vocal and constructive voice at the EU table, ensuring that the EU's approach remains measured and proportionate. My consistent position has been, and remains, that we need substantive, calm, measured, and comprehensive dialogue with the United States. This is also the position of the EU.

Following discussions with Member States, the EU shared with the US its ideas for an "EU-US Agreement on Reciprocal Mutually Beneficial Trade."

This proposal offers the United States options to move our relationship forward in several areas, including reducing tariffs and non-tariff barriers, promoting economic security, and facilitating strategic purchases, business opportunities, and investment.

The Commission also proposed that the EU and US work together on strategic sectors and global challenges.

Negotiations have been taking place at both technical and political levels and this is very welcome. The situation remains deeply challenging but we all share the objective of reaching a mutually beneficial agreement in the period ahead.

I spoke with US Trade Representative, Jamison Greer, last Thursday and I conveyed to him Ireland’s and the EU’s commitment to finding a positive way forward.

At all times negotiations remain my focus.

However, I also understand the need for the EU to undertake further internal preparations regarding rebalancing measures should negotiations prove unsuccessful. This is a sensible and measured approach.

I have and will continue to communicate Irish-specific sectoral concerns to the Commission. I will speak with Commissioner Šefčovič later today and outline our sensitivities and concerns.

Centuries of economic history teach us tariffs are economically damaging for all sides.

Already, forecasts for global growth have been reduced, with OECD and World Bank forecasting global growth at around 2.9% in 2025. Trade uncertainty has depressed equities and weakened major currencies like the US dollar.

Trade uncertainty disrupts complex and highly integrated supply chains that benefit businesses, workers, and consumers on both sides of the Atlantic.

Uncertainty forces investment decisions to pause or slow down, lowering the rate of productivity we might otherwise expect from those investments in the future.

As a small, open economy, Ireland fully supports balanced international trade and the suite of EU Free Trade Agreements that underpin this approach.

That is why I am committed to ratifying CETA.

Just last month, I received Cabinet approval for a Memo for Government proposing a Bill making the necessary amendments to the Arbitration Act 2010 that, if enacted by the Oireachtas, would enable the ratification of CETA and other similar Free Trade Agreements, including those with Singapore, Vietnam, Chile, and Mexico.

Hundreds of thousands of jobs depend on Ireland being open to trade and supportive of free trade agreements.

Competitiveness and Simplification: Europe's Economic Imperative

I firmly believe that Ireland can and will rise to the challenges ahead.

What is vital here, for Ireland and for the EU as a whole, is how we compete globally – we have seen the challenges for Europe clearly outlined by the two reports of Letta and Draghi: we need to become more innovative, more productive, and more competitive.

Regardless of the wider geopolitical changes, Europe must get out of its own way when it comes to trade, investment, and innovation.

We are currently focused on removal of an averaged 10 to 20 per cent tariff from the US.

In February 2025, Former Italian Prime Minister Mario Draghi addressed the European Parliament, quoting IMF estimates that Europe’s internal barriers are equivalent to 45 per cent tariffs for manufacturing and 110 per cent for services.

The benefits to Irish consumers and producers from Europe finding ways to reduce the barriers we place in front of ourselves would be transformative.

I have no doubt that we can and we will succeed here.

I am working intensively to improve the competitiveness of Irish companies and to position Ireland as a leader in European efforts to revitalise our economy.

The Commission's 'Competitiveness Compass' provides a roadmap, but implementation will require political will and practical action at both European and national levels.

The single market remains Europe's greatest economic achievement, but it has not fulfilled its potential. Too many barriers remain, too much bureaucracy stifles innovation, and too many opportunities are lost to regulatory fragmentation.

I am prioritising efforts to revitalise and strengthen the single market, particularly in digital services, financial services, and energy.

Energy infrastructure presents a particular opportunity for Ireland. Our renewable energy potential is enormous, but realising it requires EU-wide investment in grid infrastructure and interconnection.

I am working to ensure that European energy policy recognises Ireland's potential contribution to continental energy security and climate objectives.

Supporting businesses to scale up is another priority where I see significant potential. Too many European companies remain trapped in domestic markets, unable to achieve the scale necessary to compete globally.

I am working to reduce barriers to cross-border expansion and to create incentives for companies to think European from the outset.

Regulatory burden represents perhaps the most immediate obstacle to European competitiveness.

The Commission has committed to reducing administrative burden by up to 25% overall, and 35% for small and medium enterprises. Ireland is highly supportive of this ambition, and I am working to ensure it becomes reality rather than rhetoric.

This is not abstract policy-making—this is about whether Europe can continue to provide prosperity and opportunity for its citizens in the decades ahead.

However, I want to be absolutely clear: simplification cannot be a race to the regulatory bottom.

It has to be about better regulation, not deregulation.

Our objective is a rationalisation of the current framework that sees more efficient and effective implementation while maintaining the standards that protect our workers, consumers, and environment.

At the national level, I am working to ensure Ireland leads by example. The Government has committed to publishing an Action Plan on Competitiveness and Productivity that will demonstrate our commitment to these principles.

We cannot expect Europe to become more competitive if we are not prepared to take bold action ourselves. And equally we need to ensure that our efforts at national level and European level are fully joined up.

Market Diversification – Space to grow our businesses and our people

It is clear as I speak to you today also that the diversification of our trade is more important than ever before; a robust set of actions focused on trade and market diversification is already underway.

Since its establishment in February, the Government Trade Forum, which I chair, has become an important platform for engagement with key stakeholders across Government, with business organisations and other representative groups.

There is an opportunity now for new ambition in our approach to market diversification. This can encompass EU, UK or further afield. We are working with Irish exporters in exploring new markets, leveraging existing EU trade agreements, and strengthening their international presence.

This proactive approach will help promote Ireland’s economic resilience, foster competitiveness and productivity, and strengthen and support our trade and investment model.

Conclusion

Make no mistake—the rules-based, multilateral trading system is being challenged. At a time of global uncertainty, Ireland must not only defend this model but continue to strengthen and champion it. We can absolutely do this; our experience as a small, open economy that has thrived through European integration while maintaining global connections puts us in an excellent position.

Whether in managing trade tensions with the US, rebuilding relationships with the UK, enhancing European competitiveness, or leading the EU during our Presidency, Ireland has the opportunity to contribute constructively to solutions.

I am committed to ensuring that we seize that opportunity—for Ireland, for Europe, and for the common values that we share.

Thank you for your attention, and I look forward to our discussion.

Go raibh maith agaibh.