In addition to the aid already put on the table this summer and amounting to 6.9 billion euros, the finance minister of the tripartite coalition in power in Ireland, Paschal Donohoe, announced 4.1 billion in additional and one-off expenses. .

Brexit, Covid and now war in Ukraine: "unforeseen risks and challenges are becoming more and more frequent", he assured the Irish deputies of the Dail, the lower house of Parliament.

The conflict "sent shockwaves throughout the global economy and this is particularly evident in the energy and commodity markets".

The budget provides in particular 600 euros in energy credits for households, an increase to 40,000 euros in the income threshold to which the highest tax rate applies or even aid for energy bills for companies, within the limit of 10,000 euros per month and per company.

The financing of these expenses will be helped by an increase in tax revenue, amounting to 10 billion euros over one year for the period from January to the end of August 2022 alone, driven mainly by corporate tax, specified the Minister for Finance.

The country, endowed with advantageous taxation for companies, notably houses the European headquarters of many multinational technology companies such as Apple, Google or the parent company of Facebook, Meta, which boost the country's tax revenues.

The Irish government will also set aside part of the budget surpluses to deal with future uncertainties: two billion euros for 2022 and four billion planned for next year.

The urgency to act in the face of inflation and its consequences on households and businesses had prompted the Minister of Finance to anticipate his presentation in relation to the deadline set in October.

Inflation still reached 8.7% in August in Ireland, which is suffering like elsewhere in Europe from the consequences of the war in Ukraine, and electricity and gas bills are set to rise sharply on 1 October.

"We need to make sure that we get people through the winter despite this unprecedented crisis, but also that we have the reserves to get through the whole of 2023," the Prime Minister said on Tuesday ahead of the budget announcement. Irish Minister Micheal Martin.

The Irish government also plans to introduce an exceptional tax on energy groups, like several other European states, but this measure was not included in the budget on Tuesday, contrary to what the executive had suggested.

"It's not fair for companies to take excessive profits from the current market volatility," Donohoe said.

Dublin wants to be part of a coordinated EU-wide mechanism, but "if that is not possible, this government will come up with its own measures", he warned.

© 2022 AFP