Speech by Taoiseach Micheál Martin at the National Economic Dialogue 2026 15 June 2026

Check against Delivery

Dia daoibh a chairde.

It is a pleasure to welcome you all to this year’s National Economic Dialogue.

My thanks to the Tánaiste, Minister Chambers, and their officials for organising this event.

Thanks also to our chair for today, Professor Orla Doyle and her rapporteurs, and of course to all of you for attending.

Your role is at the centre of the National Economic Dialogue.

As in previous years, the primary aim of this process is to not just help inform the upcoming Budget but to do so through engaging with the fundamental challenges and opportunities which face our country.

The theme for this Dialogue speaks directly to this: reforming now for a secure future. Our economy continues to show real resilience, but we all know that the scale and pace of change, particularly in the international economy on which we rely, is going to continue to accelerate.

That is why we have taken the initiative to publish in-depth reviews of the long-term scenarios for the Irish economy and public finances.

The single most demanding thing in public policy is gaining acceptance of the fact that choices will always have to be made – and that if we want to shape our future, we have address needs of today while also acting for the future

We also have to understand where we have to respond to developments which are not within our control.

Future Forty: A Fiscal and Economic Outlook to 2065 examines the long-term impacts of global megatrends and other structural shifts and their potential impact on Ireland.

These trends and shifts are not abstract or theoretical. They are real drivers of economic, fiscal, social and environmental change that, in many cases, are already being felt.

The fundamental point is that the next decade is a window of critical opportunity to boost economic growth potential and address structural challenges.

If we wish to be able to improve living standards for all, and overcome critical social challenges, we need to do more than just keep what we have.

Sustained improvements in living standards depend on growth in productivity, as it reflects an economy’s ability to generate more output from the same quantity of labour and capital through innovation, technological adoption, and greater efficiency.

For Ireland, improving productivity growth will be particularly important over the next decade as demographic pressures and a gradually slowing pace of labour force expansion reduce the scope for growth through traditional inputs.

Put more simply, we have to act to increase the productive capacity of the economy. That means even greater action on fostering innovation, skills development, and indigenous enterprise competitiveness.

However, these are rarely areas which make the headlines. Planning sustainably and effectively demands difficult decisions regarding our priorities and resources.

We can look forward to making these decisions with an economy in a position of relative strength in turbulent times.

Ireland continues to demonstrate its economic resilience and its ability to adapt to changing global circumstances.

The domestic economy continues to perform well, with:

• more than 2.9 million people working,
• wage growth across the economy, and
• robust Exchequer returns.

However, make no mistake - While our economy is performing well today, we can take nothing for granted.

We must openly acknowledge the challenges which we face, not least significant geopolitical uncertainty, housing, infrastructure and the cost of living.

Not all of the challenges we face are ones which we can control – which makes it even more important that we use the levers which are available to us.

Let’s all understand that the risks ahead for Ireland’s economy, and indeed globally, are profoundly serious and tilted to the downside.

Right now, we are responding to the conflict in the Middle East, the ongoing war in Ukraine, the growing use of tariffs and restrictions on global trade, and ongoing disruption to energy supply chains

We are working to ensure Ireland remains a trusted, stable and attractive location for businesses navigating a rapidly changing world.

Improving enterprise competitiveness and productivity is a central principle of our government and we will continue to drive this agenda domestically and in Europe, during our Presidency of the Council of Europe, and beyond.

We are absolutely aware of the pressure being felt by people, their families and businesses across the country due to rising costs.

We have taken action to help households and businesses across the last number of years and, most recently, with the cost of fuel and energy this year.

These have only been possible because of a prudent approach in recent budgets.

Of course, we cannot mitigate every increase in cost, and we must retain resources to ensure we can deal with any further deterioration in the global economy.

But we are constantly working on initiatives to address immediate and ongoing pressures. One part of this is the work of the National Energy Affordability Taskforce (NEAT).

I want to repeat that what I want us to deliver is not just short-term relief – we have to get long-term prices down with secure, sustainable and affordable energy supplies. This will take a major programme of investment and reform and that is a priority for me.

As we consider Budget 2027, the starting point has to be that we must manage our resources in a fiscally sustainable way.

Our corporate tax base is highly concentrated and receipts are volatile. Our voted expenditure has increased by 75% since the pandemic.

With all this in mind, we are continuing to target budget surpluses and keep our public finances on a sustainable path.

I am very conscious about debates about the level of increase in spending. But it important to respect the fact that much of the recent increases in expenditure reflect the needs of a growing society and economy.

For example, total voted expenditure over the period 2026 – 2030 is set to remain a constant fraction of national income as defined by adjusted Gross National Income (GNI). A rising population and growing economy can sustain ambitious increases in spending, but they have to respect reasonable limits.

A priority in funding has to be to future-proof our economy and society.

This future-proofing means:

• Capital investment which accelerates delivery of housing, infrastructure, energy, water, healthcare, transport and addressing climate change and digitalisation.
• investment in our people and public services.
• improving our competitiveness and productivity offering; and
• consistent, stable and sustainable planning enabled by significant national reserve funds.

Ireland’s continued economic and social progress depends on our ability to deliver housing and infrastructure at a pace and scale that meets the needs of a growing population, a changing economy, and a sustainable future.

We know that homes cannot be delivered at scale without supporting water, transport, and energy infrastructure.

The revised National Development Plan sets out unprecedented investment of over €275 billion for critical infrastructure to 2035, including €112 billion up to 2030.

The key focus now is ensuring that our delivery systems are capable of translating this investment commitment into tangible outcomes.

The challenge is not solely one of funding or vision. It is increasingly about reform.

We are prioritising the reform of systems, processes, and governance structures around decision making so that we can deliver more effectively.

This can be seen through the Accelerating Infrastructure Report and Action Plan, and the Critical Infrastructure Bill.

There will be significant fluctuations between months and quarters – but the progress is clear.

Time is being saved on key projects and certainty is being provided to industry.

We are making a historic investment in our national electricity network and once in a generation projects such as the MetroLink and the Greater Dublin Drainage project are being progressed at pace.

The Delivering Homes, Building Communities housing plan is empowering the State, partners, and the private sector to further play a critical part in delivery.

We have made available the highest ever commitment of Exchequer funding for housing.

We are seeing real progress with almost 149,000 homes built since the beginning of 2021.

More recent data shows almost 8,000 (7,856) new homes were built in Q1 2026 - the highest number of Q1 completions since the series began, 15 years ago.

However, much more needs to be achieved. We are prioritising reform and a radical step change in housing delivery, including through:

• last year’s revision of the National Planning Framework.
• The Housing Activation Office; and
• implementation of the Planning and Development Act 2024.

Given the scale of capital required to deliver sufficient housing supply in Ireland, private sector investment is also essential to addressing the country’s housing shortage at scale.

Public finances alone cannot sustainably meet the funding demands of large-scale housebuilding. Mobilising private capital can accelerate delivery, improve market capacity, and support the long-term expansion of housing supply so government has introduced targeted measures over the past year aimed at improving investment conditions for housing supply.

We are tackling the viability problem through new guidelines on apartment standards and taxation measures.

We have also implemented reforms to rent pressure zones, which will strengthen the rights of tenants and help to stimulate increased investment and development.

Additionally, we are introducing reforms to our Planning Exemptions Regulations, which have not been substantially updated in almost 25 years.

And we have also expanded the remit of the Land Development Agency and have committed to an additional €2.5 billion in its funding.

Our economy is strong and our population is growing, and we are building a robust infrastructural and housing backbone to support this.

Delivery will require broad societal support. We must recognise that these investments are essential to sustaining economic growth and improving quality of life for all.

Success will depend on a shared national commitment – from Government, from the private sector, and from our communities across the country.

We are seizing the opportunity now to invest for the benefit of current and future generations.

While doing this, we are determined to move forward rapidly in transitioning Ireland to a more sustainable energy future. A future which addresses the climate emergency but does so in a way which also strengthens the core foundations of our economy.

We need to avoid the destructive idea that we have to choose between a strong economy and playing our part in tackling climate change. We have to make sure that our transition to a low-carbon future provide a permanent foundation for economic and social strength locally and nationally.

We are seeing encouraging signs.

Ireland’s emissions have been falling for the last three years, and we now have lower overall emissions than at any point in the last 35 years, despite our population growing by 50% over that period.

We are making real progress in the areas of energy and transport.

We have to go further – taking faster action and at scale, particularly over the next five years.

We must continue to drive forward our renewables-led energy transformation to accelerate this.

Renewable electricity is the foundation upon which broader decarbonisation is being built.

A clean, secure and flexible electricity system enables the electrification of transport — from private vehicles to public fleets.

It enables decarbonised heating of homes and businesses, and it supports industry in transitioning to cleaner processes.

Our Offshore Renewable Energy Industrial Strategy envisages the development of green energy parks, where large energy users can be matched to areas where abundant renewable generated electricity will be available

Our offshore wind resource represents a strategic national asset. Harnessing that potential can power our homes, attract investment, create skilled employment and position Ireland as a clean energy leader in the decades ahead.

A point I want to reinforce is that our programme of investment and reform in energy must deliver lower costs for families and businesses.

It must mark a moment where at every level, from investment in hard infrastructure to the shaping or regulatory rules, that we set ourselves the urgent target of not just securing our energy needs, but we do so in a sustainable and more cost affordable way.

We must also recognise that climate change is not just a story of reducing emissions.

We are investing in measures to adapt to the climate changes that are underway: in resilient infrastructure, in early-warning systems and in improving our resilience to floods, storms, droughts and rising sea levels.

I am also firmly of the belief that decarbonisation and climate adaptation will be supported by digitalisation and tools such as AI.

I want to be clear in saying that I don’t support tech naively – where we just assume that every development is for the better and we will benefit from it. AI is both a challenge and an opportunity – and we have to be aware of both.

In these still early days of its impact, very little is clear about exactly what it means for the nature and levels of employment.

The most important thing for us is that we urgently engage in understanding the technology and, where we see opportunities, to seek to use them for our benefit.

This is the principle which lies behind our National Digital & AI Strategy, Digital Ireland. We want Ireland to have a clear position as a digital leader and a global hub for applied AI innovation.

We are committed to strengthening Ireland’s position as an EU Centre of Excellence and digital regulatory hub and to ensuring a modern, cohesive and well-resourced regulatory framework that is responsive to the evolving digital age.

Indeed, Artificial intelligence-related economic activity is already beginning to materially influence the Irish economy, with recent national accounts data highlighting strong growth in both investment and trade flows linked to expanding demand for digital infrastructure, data services, and technology-intensive multinational activity.

Increased capital expenditure in areas such as data centres, cloud computing infrastructure, and advanced technology systems, alongside continued strength in high-value service exports, suggests that the global acceleration in AI adoption is having a positive impact in Ireland.

There are three priorities for me in the field of AI adoption in Ireland:

• to increase productivity, the ultimate source of improved living standards
• to improve the quality of public services
• to deliver breakthroughs in science and medicine

As part of this we are:

• establishing a new AI Advisory Unit for the public service and support all public servants to upskill in AI in 2026.
• implementing a new targeted sectoral strategy to drive AI adoption across the enterprise base and appoint new AI Sector Champions; and
• establish a new AI Office of Ireland, and AI Regulatory Sandbox.

Last week we launched a new internationally leading AI Research Centre of scale.

I very much understand that many people are concerned about what AI means for their jobs – and this is why our policy is to both embrace clear opportunities and to support current and future workers, both in the public and private sectors, to navigate and mitigate the impacts of AI.

We can shape the impact of AI on our future – and to do this we need all sectors to actively engage and to help frame the design and implementation of responses.

When we speak of inclusion it is not simply an aspiration or a nice to have - it is, and must be, a fundamental priority.

If we are serious about building a resilient, prosperous, and sustainable future, we must ensure that opportunity is both accessible and abundant.

This principle is at the heart of our approach in the Medium-Term Fiscal Plan, where social inclusion is a central pillar.

I am focused on ensuring that those who are most vulnerable are supported to realise their potential.

When we design for those with the greatest needs, we create systems that work better for everyone.

For disabled people, we are committed to delivering a step change in services and supports.

Through the National Human Rights Strategy for Disabled People 2025–2030, we are taking a whole-of-government approach to ensure that people with disabilities can live full, independent lives, participating to the fullest extent possible

We have also set a clear national Child Poverty Target: to reduce consistent child poverty to 3% or less by 2030—more than halving current levels.

Achieving this involves many factors, as has been seen in the reduction of poverty levels in the past.

Budget 2026 marked a significant step. It represented the first chapter of a multiannual programme of change, with important initial measures to deliver on our commitments in these areas.

We will continue to build on this progress in the years ahead.

Prioritising inclusion must be underpinned by responsive public services—services that are capable of learning from, and adapting to, the experiences of those most affected by disadvantage and exclusion.

Supporting and empowering our public sector workforce is critical to this effort.

Investment in education is central to empowering people to overcome breaking cycles of disadvantage. From expanding further and higher education capacity in critical sectors, to strengthening inclusive education that meets the needs of all children, our approach is clear: we must direct resources where they will have the greatest impact.

In health, the budget has increased significantly from over €14 billion in 2016 to €27.4 billion in 2026.

This investment is delivering higher levels and quality of care to all sections of society.

Increased funding, expanded infrastructure including capital and digital, and workforce development are supporting this.

But achieving our economic and social objectives requires often tough choices—targeting resources, aligning policies, and sustaining investment.

By focusing our efforts where they are needed most, we not only protect the most vulnerable, but we build a stronger, more resilient society across Ireland.

So as a government we have a lot to contemplate in advance of the Budget.

I believe structured engagement with the social partners is important, not just through this Dialogue today, but through our broader stakeholder engagement in various forums right across Government.

Today I ask that we constructively, openly and honestly discuss how we can take the next steps towards our shared goal of a better country and better future for our people.

We welcome your input and feedback, which will help guide our path to a sustainable economy to the benefit of everyone.

Thank you for your participation and for sharing your expertise.

Go raibh maith agaibh.

ENDS