logo
Paschal Donohoe and Jack Chambers resist spending demands from ministers

Paschal Donohoe and Jack Chambers resist spending demands from ministers

Irish Times7 hours ago
Major decisions on public spending will be taken by the Government in the coming fortnight, with budget ministers Jack Chambers and Paschal Donohoe said to be resisting pressure from colleagues for major spending increases on capital and current budgets.
The summer economic statement – a key marker for the October budget – which is normally published in the first or second week of July, will not be agreed until next week at the earliest, according to several people involved in the process.
It is being held up by the need to agree a revised National Development Plan (NDP), and also by a Government desire to see the outcome of the trade talks between the EU and the United States, with US president Donald Trump's deadline for a deal due to expire on Wednesday.
Failure to agree a deal by then could spark a trade war between the EU and the US, with severe consequences for the Irish economy.
READ MORE
Sources with knowledge of the issues confirmed that Government ministers have made requests for substantial extra capital spending in the revised NDP, which is provisionally scheduled to be published on July 22nd, amounting to 'tens of billion' above the existing €165 billion plan, bringing it to just under €200 billion. The plan lays out capital projects until 2030.
Ministers are also pushing for significant increases in current spending next year, despite signals from the budget ministers and party leaders that the sort of increases seen in recent years cannot be repeated this year.
Taoiseach Micheál Martin said last week that it was 'not sustainable' to increase expenditure at the levels of recent years.
It is understood that both Mr Donohoe and Mr Chambers have made clear to colleagues that they will not agree to increases in public expenditure which far outstrip the rate of economic growth.
Sources confirmed that Government ministers have made requests for substantial extra capital spending in the revised National Development Plan
The two ministers met with their party leaders at Government Buildings a fortnight ago which, sources say, saw the key decision-makers agree that they will not repeat the cost-of-living packages that were a feature of the last three budgets.
Last week's controversy over possible increases in third-level fees, however, unnerved many in Government by demonstrating how politically difficult it will be to scrap benefits to which people have become accustomed.
On Wednesday, the deadline imposed by Mr Trump for agreement of a trade deal between the EU and US expires and the EU faces the possibility of 20 per cent tariffs – imposed by Mr Trump on April 2nd, but delayed until July 9th – being placed on EU imports.
If that happens, the EU is likely to respond with its own tariffs on US imports, which could trigger further retaliation from Washington – raising the prospect of a transatlantic trade war.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Ursula von der Leyen to plead her case to MEPs ahead of a no-confidence vote
Ursula von der Leyen to plead her case to MEPs ahead of a no-confidence vote

The Journal

time12 minutes ago

  • The Journal

Ursula von der Leyen to plead her case to MEPs ahead of a no-confidence vote

EUROPEAN COMMISSION PRESIDENT Ursula von der Leyen is set to travel to Strasbourg, France today to address MEPs before a no-confidence vote in the European Parliament on Thursday. If successful, the European Parliament would censure the European Commission and oust von der Leyen and her 26 commissioners. While the vote is unlikely to pass, it highlights a growing tension between politicians within Brussels. A motion for censure was agreed to and tabled by parliamentary group leaders on Thursday evening after it was proposed by right-wing MEP Gheorghe Pipera. Pipera proposed the no-confidence motion over a recently annulled commission decision that denied a journalist access to text messages between von der Leyen and Pfizer CEO Albert Bourla during the Covid-19 pandemic . The European Union's General Court sided with The New York Time's case in May, rejecting the commission's decision to deny access to the messages. It has been alleged that texts were key to securing vaccines during the pandemic. A debate will take place after 4pm Irish time in the European Parliament's hemicycle in Strasbourg today, where MEPs are meeting for their monthly plenary session to thrash out and vote on new legislation. Politico reports that von der Leyen plans to bring all 26 of her commission college members, including Ireland's Michael McGrath, with her while she addresses MEPs to show unity among the EU's executive ranks. Advertisement It is likely that her address will focus on the need for stability in the current political climate of tariffs from the US, the Russian invasion of Ukraine, Israel's war in Gaza and economic actions in the EU, such as single market and competitiveness reform. The vote comes at a critical point for the EU, which is facing devastating tariffs from the US this week, unless a deal is reached, as it attempts to refocus spending between member states' economies to become more self-sufficient. While von der Leyen launched policies around economic reform, military spending and climate issues with relative success, the German politician's support for Israel has caused a lasting tension between herself and support from Irish members. Fine Gael, a member of von der Leyen's European People's Party, has confirmed that it will be rejecting the motion for censure. Fianna Fáil MEPs, Labour's Aodhán Ó Ríordáin and independent Michael McNamara have said they will decide after today's debate. Sinn Féin MEPs and Independent Ireland's Ciaran Mullooly have said they will accept the censure motion on Thursday. Independent Luke Ming Flanagan, who is generally opposed to von der Leyen, has yet to indicate his voting intention. Irish MEPs in July last year largely opposed a second von der Leyen term over her stance on Israel's war in Gaza, among other issues. During her speech to MEPs before her reelection last year, she called for a ceasefire in Gaza for the first time . In the same speech, she vowed to be tougher on migration and boost Europe's defence spending. She also pledged to take action to increase the EU's housing delivery through widespread changes to economic policy and spending rules. Von der Leyen will today address members for 15 minutes before hearing from the five parliamentary group leaders, who each will be given five minutes to outline their group's position. As political groupings do not operate a strict whip system, individual members will also be given an opportunity to address the parliament for one minute each. MEPs will then vote on Thursday to accept or reject the motion for censure. With reporting by Jane Matthews Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal

Presidential election: Sinn Féin's Mary Lou McDonald refuses to rule herself out as a potential candidate
Presidential election: Sinn Féin's Mary Lou McDonald refuses to rule herself out as a potential candidate

Irish Times

timean hour ago

  • Irish Times

Presidential election: Sinn Féin's Mary Lou McDonald refuses to rule herself out as a potential candidate

Sinn Féin leader Mary Lou McDonald has refused to rule herself out as a potential candidate for this year's presidential election . Asked on Monday if she was ruling herself out for contesting the election, Ms McDonald replied: 'We're not ruling anything in or anything out.' With only months to go until the election, very few would-be candidates have formally declared an interest in succeeding Michael D Higgins when his 14 years in Áras an Uachtaráin ends in November. Sinn Féin is still considering whether or not it will work with the likes of Labour and the Social Democrats to support a left-wing unity candidate in the campaign. READ MORE Ms McDonald confirmed on Monday that she had received an internal report based on a consultation with Sinn Féin party membership seeking their views on the contest. The report has not yet been shared within the party but is expected to be circulated later this summer. Ms McDonald said her party has to 'do a bit more work, roll the process out, and I think over the next number of weeks, probably the end of July and into August, we will have a clearer picture of what we are doing'. 'As you know, we have been in discussion with other political parties around the option of perhaps a joint candidate, supported by all of us across the left and the combined opposition. So we don't have clarity, full clarity on this. It's a moving picture,' she added. Ms McDonald said updates on Sinn Féin's 'process and procedure and all the runners and riders' would follow. 'I have seen lots of people's names mentioned. So we're not we're not making any comment definitively on any of them,' she said. Ms McDonald was speaking outside the High Court on Monday ahead of the latest stage of a legal challenge taken by Kerry TD Pa Daly against the Government's appointment of so-called 'super junior' ministers who attend cabinet meetings. His case points to article 28 of the Constitution, which limits the number of government members to 15, including the taoiseach. In facilitating more non-government ministers of State sitting at cabinet, the Government is 'acting contrary' to the 15-person limit and to the 'expressed wish of the people of Ireland', he claims. 'The Constitution, in our view, is very clear. The cabinet amounts to 15 members, and we believe that the government is breaking the rules,' Ms McDonald said. Mr Daly confirmed his case may reference comments from former taoiseach Leo Varadkar , though it is not expected that the former Fine Gael leader will be called as a witness. Earlier this year, Mr Varadkar wrote an opinion piece for The Sunday Times where he said he had used the roles of super juniors to 'get around' the rule capping the number of cabinet ministers to 15. 'We don't have any plans to call him physically into the court at the moment,' Mr Daly said. 'Some of the comments that he has made have been referenced in affidavits, but at the moment we don't have any plans to bring him in over the next few months.'

FAI seek to postpone Wednesday's Oireachtas committee hearing
FAI seek to postpone Wednesday's Oireachtas committee hearing

Irish Times

timean hour ago

  • Irish Times

FAI seek to postpone Wednesday's Oireachtas committee hearing

The Football Association of Ireland have requested a four-week deferment of their scheduled appearance before the Oireachtas sport committee. Senior members of the Association are due in Leinster House on Wednesday but have sought more time due to 'the complexity introduced by the committee seeking material that relates directly to an ongoing Garda investigation'. The FAI also requested that the 'scope of the session is clearly defined'. The Oireachtas Committee on Tourism, Culture, Arts, Sport and Media has been approached for a response. READ MORE [ FAI board holds unscheduled board meeting after standoff with Oireachtas sport committee Opens in new window ] The ongoing Garda investigation relates to allegations against former male coaches of inappropriate relationships with female players and unwanted sexual advances dating back to the 1990s. The allegations were first made public last year by a joint project by RTÉ Investigates and the Sunday Independent. Gardaí have confirmed they are investigating at least one complaint concerning the matter. The former coaches have denied any wrongdoing. The FAI board held an unscheduled meeting on Friday before seeking the four-week postponement from the Oireachtas committee on Monday morning. 'When the formal invite was received on Friday 27th June the committee requested a broad range of documents, many that relate specifically to an ongoing Garda investigation,' a statement from the FAI read. 'Given the complexities involved in collating and considering our ability to comply with this request and to enable adequate preparation time we have sought a deferral of four weeks. Any disclosure must also be assessed carefully for legal and GDPR compliance given the sensitive and confidential nature of safeguarding information requested. 'Over the intervening period we will continue to liaise with the committee to ensure the scope of the session is clearly defined to ensure that no parties could inadvertently compromise an ongoing investigation. 'We fully respect the important work of the joint committee and acknowledge the critical oversight role it plays in relation to legislation, policy, governance, expenditure and administration of the Department of Culture, Communications and Sport. The FAI is fully committed to engaging constructively with the Committee on this matter and we look forward to them defining a revised date where this session can proceed.' Speaking under Dáil privilege last month, Fianna Fáil TD Pádraig O'Sullivan said the FAI knew of the allegations in 2023, 'despite the FAI stating publicly that it only learned of these allegations in early 2024'. Mr O'Sullivan said he had seen correspondence dating to May 4th, 2023, which laid this out in 'black and white'. Minister of State for Sport Charlie McConalogue subsequently stated his department and Sport Ireland believe the FAI had engaged appropriately with the allegations, and that once it received a formal complaint in January 2024 it acted swiftly and contacted Gardaí. Despite requesting the four-week postponement, the FAI has accepted the invitation to appear before the Oireachtas sport committee on Wednesday.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store