The Tánaiste has stated that measures aimed at addressing the rising costs of oil and gas would be implemented for a “short, defined period”, enabling the Government to remain “nimble and flexible”.
In his statement, Harris explained that this approach would allow for adjustments or revisions depending on how the conflict evolves, reports Breaking News.
“The interventions… strike an appropriate balance between providing help now and keeping some of our powder dry – nobody knows what the situation will be in a month from now; so we must remain nimble and flexible in our response,” he said, reports Breaking News.
The Government is expected to announce the measures on Tuesday, as pressure mounts to ease the impact of rising fuel costs on consumers amid the Middle East war.
Diesel prices have surged by approximately 10.5 per cent since February, with the average cost rising 18 cents from €1.72, while petrol prices have increased 4.6 per cent to €1.81 per litre on average in March, according to AA Ireland, reports Breaking News.
In some areas, fuel costs have reportedly exceeded €2 per litre.
Speaking to reporters on Friday, Harris said that the measures would be temporary and focus on three key areas: petrol and diesel prices, support for those most at risk of fuel poverty, and assistance for “core parts” of the economy such as the haulage sector, reports Breaking News.
On Saturday, he reassured that Ireland is “approaching this global economic challenge from a position of relative strength”, noting a “significant budgetary surplus” that provides the “fiscal capacity” to respond.
“In the past, we have often been criticised for running these budget surpluses and asked why we do not spend all available resources,” he said, reports Breaking News.
“The current situation highlights why it is so important to run budget surpluses in ‘good times’ – this common-sense approach to budgetary policy allows us to build up fiscal buffers and gives us the capacity to intervene when an economic shock arises.”
He also acknowledged that many people are experiencing “financial pressure”, and noted the effect of “financial anxiety”, reports Breaking News.
Harris said he plans to present a macroeconomic analysis “shortly”, outlining a range of scenarios for how the conflict could unfold.
He also admitted that economic growth would continue, “albeit at a slower pace” than previously expected, reports Breaking News.
Highlighting the importance of cooperation with European partners, including at a forthcoming meeting of EU finance ministers, Harris said the conflict serves as a “sharp reminder” of the need to move toward energy independence.
“I want to stress that Ireland, and the Irish economy, will get through this – I have no doubt about that,” reports Breaking News.
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