EUROPEAN SEMESTER SPRING PACKAGE

https://eapn.ie/wp-content/uploads/2026/06/HJ5WGMxbMAAiHXN-890x314.jpg

The European Semester is the EU’s annual cycle of macroeconomic, fiscal, and structural policy coordination. It is designed to inform every country’s annual budget and ensure that it is in line with overall EU objectives. The Recommendations for all countries were published at the start of June, following a process of consultation and in person engagement from the European Commission with the Government and civil society earlier in the year.

EAPN Ireland appreciates the thorough and committed engagement which was undertaken by the Commission. We welcome the inclusion again this year of a socially focused Country Specific Recommendation in relation to housing. This recognises the distorting impact of the housing crisis on all aspects of the Irish economy. It is particularly important that the Commission has pinpointed the need to address the supply of social and affordable housing, stressing the need to strengthen the role of local authorities. This is the position of EAPN Ireland. For too long government has relied on enticements and subsidies to private developers to address supply resulting in the delivery of unaffordable housing. It is also welcome that they specifically mentioned the need to combat housing exclusion of vulnerable groups and tackle homelessness.

It is also welcome that the socially focused CSR mentions strengthening labour market access and tackling social inclusion of disadvantaged groups, particularly disabled people and single parents. We strongly echo the call for the Government to put in place better outreach and up-skilling and improving social services and access to same. Ireland still has one of the worst employment records for disabled people and while tackling this is a government priority, we need to see the results.

Again, Ireland’s over-reliance on tax receipts from a small number of multi-nationals, and the need to expand the tax base has been highlighted, along with key concerns in relation to our failure to meet our climate targets, including the need to address our over-dependence on fossil fuels, and problems with energy prices and water quality. Tackling these areas is overdue. EAPN Ireland has long called for a broadening of the tax base and for the urgent need to introduce a wealth tax against the backdrop where 11 billionaires having as much wealth as 85% of the population. Even if only the top 1% of households were targeted at a rate of 1.2%, this would yield €1 billion per annum, rising to €1.7 billion at 2%, and €2.5 billion at 3%. This money could be ring-fenced to address some of the socially necessary goals. We appreciate the focus placed on developing renewables and improving public transport.

We note that again the Commission has referenced the total lack of cost-effectiveness of our health service. We are paying more for less, with inadequate primary care producing a poorer and more expensive outcome for patients. It is our belief that the full implementation of Slaintecare is the optimum way to address this.

A number of references are made to the need to increase defence spending, and the fact that the national escape clause, loosening fiscal restrictions to enable rapid and significant defence spending has been triggered. We believe that this clause should be triggered to tackle the devastating housing crisis across Europe, particularly acute in Ireland, and the erosion of public services which has made life incredibly difficult for so many people. Defence spending is costly, and does not generate significant employment related to the level of that expenditure. It would be far cheaper and more effective in terms of improving Irish society to invest in increasing the numbers of teachers by improving conditions and tackling housing, areas the Commission have highlighted.

We would also be concerned about the points made in relation to the subsidisation of energy prices in response to the global crisis. The Commission points out that these measures have cost 0.1% of GDP and should they remain in place to the end of the year would reach 0.3%. However, our starting point is firmly that households cannot bear these costs, if as the Commission recommends these measures must be short term, then a clear alternative which does not put the burden on households must be in place. Similarly, we do not believe that Ireland’s low participation in global capital markets is a bad thing. These markets have had a distorting impact on the real economy and we do not believe that we as a society, would benefit from such engagement.

We would strongly recommend that everyone takes the time to study the European Semester Package as it contains very valuable information regarding the Irish economy, it’s relationship with the EU and the issues that need to be addressed. Again, we thank the Commission for their diligence and engagement and refer you to the full report available HERE.

Working against poverty in Ireland and Europe

European Anti Poverty Network Ireland