Ireland’s largest trade union body has called on the government to abandon its “over-dependence” on corporation tax receipts, warning that the current economic model is unsustainable and leaves the country vulnerable to external shocks.
The Irish Congress of Trade Unions (ICTU), representing more than 800,000 workers across Ireland, made the appeal at the National Economic Dialogue taking place at Dublin Castle today. The organization urged ministers to use Budget 2026 as a turning point to establish a more stable economic foundation.
ICTU General Secretary Owen Reidy criticized the government’s reliance on what he termed the “sugar rush” of corporation tax windfalls, calling for serious long-term economic planning instead. “Budget 2026 must mark a turning point by giving certainty and security to workers across Ireland,” Reidy said.
The union’s concerns echo warnings issued last week by the Irish Fiscal Advisory Council (IFAC), which highlighted the volatility of Ireland’s heavy dependence on corporation tax revenue. IFAC chair Seamus Coffey warned of mounting uncertainty from potential US tariffs and escalating trade tensions that could threaten Ireland’s corporate tax base.
Despite current strength in corporation tax receipts, driven partly by new international tax reforms requiring multinational companies with turnover exceeding €750 million to pay a minimum 15% rate globally, questions remain about the sustainability of this revenue stream. The reforms, known as BEPS (Base Erosion and Profit Shifting), have temporarily boosted Irish tax collections but create uncertainty about multinational companies’ future presence in Ireland.
IFAC has been unable to produce medium-term economic forecasts due to the Department of Finance’s failure to provide detailed spending profiles and the government’s reluctance to commit to fiscal rules. Coffey told reporters this situation demonstrates the absence of any apparent medium-term strategy.
Reidy highlighted Ireland’s “significant wage inequality” and “major infrastructure deficits” as evidence that the current economic approach is failing workers. He argued for a fundamental shift toward an economic model that prioritizes “good jobs that pay well, a decent standard of living, as well as stronger public services.”
The ICTU plans to present detailed proposals for a “New Economic Model” in the coming weeks, outlining how Ireland can build an economy focused on sustainable growth, improved living standards, and quality employment rather than volatile corporate tax revenues.
The National Economic Dialogue provides an opportunity for social partners, including trade unions, employers, and government representatives, to discuss economic policy priorities ahead of the annual budget process. Today’s discussions are expected to focus heavily on Ireland’s economic resilience and the need for diversified revenue sources.