EU

EU forecast: Ireland’s ‘brisk’ public spending offset by still-high taxes

Spending across all government departments is eating into Ireland’s budget surplus, the European Commission has said. But still-buoyant tax receipts offer the government cover, while the EU braces for a ‘hot fiscal summer’.

European economy commissioner Paolo Gentiloni has predicted a “hot fiscal summer” ahead. But Ireland will escape the heat. Picture: EU/Frédéric Sierakowski

In the not too distant past, staff in the European Commission’s economy directorate regularly issued volatility warnings on Ireland’s corporate tax receipts. Not so in their latest economic forecast — though that doesn’t mean they’re not worried.

“I don’t think the structural picture has changed,” economy commissioner Paolo Gentiloni told the Business Post on Wednesday. “The reality is that there is a lot of volatility connected to the extraordinary role of corporation tax.”