Minister for Finance Paschal Donohoe said he is not currently considering a wage subsidy scheme for sectors that may see business losses due to the US tariffs on EU goods.
Speaking on RTÉ’s This Week programme, Mr Donohoe said supports similar to those introduced during Covid-19 are not appropriate now.
“I don’t believe an economy-wide wage subsidy scheme in the way we had during the Covid pandemic would be appropriate,” he said.
However, Mr Donohoe said Ireland will be moving into a “lower level of growth” and a “lower level of job creation” as a result of the US tariffs.
The minister said that public finances are “resilient” and in a “strong position”.
He said: “We’re approaching this from a strong place. We have public finances in surplus, with 2.8 million people at work.”
He said “all measures will need, unfortunately, to be considered” in response to US tariffs on EU goods.
Mr Donohoe added that such a response would need to be “proportionate” and implemented in “a graduated way”.
The minister said: “I do believe the EU does need to respond back.
“We do need to do so in a proportionate way to create space for negotiation and be willing to create and take further steps in the future if they are regressively needed.”
‘Measured response is necessary,’ says Donohoe
Mr Donohoe said the Government believes “a measured response is necessary”.
He said the “worst” can be avoided by negotiation “rather than by the global application of tariffs and a global trade dispute persisting over an extensive period of time”.
“We have to recognise that the US may take further actions and we also have to recognise that the EU response back to this could take time,” he added.
Mr Donohoe said the Government wants to assist employers to find additional markets which will be “critical and crucial”.
It is understood the meeting will take place on Wednesday.
The two men have already spoken on the telephone in recent days when they discussed the two-way nature of the trading relationship between the countries.
Mr Donohoe said Mr Harris will provide a “national perspective” to the EU’s message on tariffs during his trip to the US.
“He’ll be making the case for the strength of our economy, the value of the relationship between the US and the EU and Ireland,” said Mr Donohoe.
Mr Donohoe said Mr Harris has been “in regular contact” with the EU Commission, adding he “will do so before and after this meeting”.
“This is about pulling together all the strengths that we have at EU central level and also the strengths that European Union governments have, so the EU is putting its best foot forward on this island,” he added.
