A wage subsidy for workers if the Irish economy tanks as a result of the 20% tariffs imposed on exports to the US is not being considered by the Government, Paschal Donohoe said yesterday, writes Ken Murray.

The Minister for Finance told RTÉ’s This Week yesterday that financial supports provided during the Covid period are unlikely to be issued again if the economy hits hard times.

“I don’t believe an economywide wage subsidy scheme in the way we had during the Covid pandemic would be appropriate,” he said.

He also indicated that the promised increase of two days’ paid sick leave is also likely to be put on hold.

“My expectation is that it will be re-examined and that the pausing of it will be examined,” he said.

Minister Donohoe, who is also president of the Eurogroup, the umbrella group for the 20 countries that use the Euro, also said growth in the Irish economy is likely to slow down as US tariffs begin to bite on exports from the European Union.

He said that unless there is a notable decrease in tariff charges from US president Donald Trump, the coming months and years are likely to be tough for the Irish economy.

He said: “Based on what we currently know, our judgment is we are going to be moving into a lower level of growth, a lower level of job creation and it will have an effect on our public finances but we will still see our public finances, for now, being in a strong and resilient position.

“It is important to emphasise two points on that. First, there is much yet to happen that can have an effect on our economy but secondly, we are approaching this from a strong place.

“Our public finances are in surplus, [we have] 2.8 million people at work, we have a growing economy and we’ll use those strengths over the coming weeks, months and years that await to get our country through this.”

Questioned if 80,000 jobs could be lost, as Minister Donohoe predicted some weeks ago as a result of the 20% tariff imposed by the United States, he said the fallout from the charges had yet to take effect, adding: “The European Union has to make the decision on how and when we [the EU] respond back.

“The EU is approaching this in a very calm and co-ordinated way.”

Photo: Paschal Donohoe. (Pic: Simon Wohlfahrt/Bloomberg via Getty Images)