Covid 19 is an unprecedented crisis for our country, the likes of which most of us have never seen before. 

Before the crisis we had almost full employment and we had balanced the books with a €1.3 billion surplus in 2019.

We set up the Rainy Day Fund and had transferred much of the surplus to that fund along with other funding. No one expected or imagined that we would need this fund so soon or so suddenly. 

Nobody can or should sugar coat the situation we are in. We have never faced such immense public health and economic challenges. 

We will have a large deficit this year. 

Tax revenues, including income and VAT, are falling and spending is continuing to increase. 

Over 1 million people are being supported through either the Pandemic Unemployment Payment or the Temporary Covid 19 Wage Subsidy Scheme. 

There are also 215,000 people on the ordinary Live Register and the CSO now calculates unemployment at a staggering 28.2%. 

Spending by the State between January and April was up 23% or €3.8 billion compared to the same period last year. 

While the situation is very grim it is different from the last economic crisis thankfully. 

  • We are able to borrow at very low interest rates
  • We had a surplus at the start of the crisis
  • The National Treasury Agency has over €28 billion in cash balances right now
  • While many sectors are in crisis, some key sectors are not such as pharmaceuticals, medical devices and IT
  • We have introduced special income supports for workers and these will continue for much of the summer. They will be gradually adjusted as people get back to work
  • We have introduced a comprehensive package of supports for businesses of all sizes including the €2 billion Recovery Fund, the €2 billion low cost loans scheme, easy to access grants and a waiver for rates, among others.
  • We have a comprehensive plan for the Re-Opening of our country which will start on Monday, 18th May. 

We cannot forget that everything we do is about saving lives and protecting our families, friends and ourselves from this new coronavirus. Together we have tackled Covid-19 and have greatly reduced its impact, taking pressure off our front line workers and ultimately saving lives. 

While government formation negotiations are underway and we don’t yet know the exact composition of the next government, whatever form it takes, the design and implementation of a National Recovery Plan will be among the most the most important tasks.