Recommendation for a COUNCIL RECOMMENDATION on the 2019 National Reform Programme of Ireland and delivering a Council opinion on the 2019 Stability Programme of Ireland
Date: 2019-06-05
Institutions: European Commission, Secretariat-General
Subjects: Ireland, economic policy, economic reform, employment policy, fiscal policy, health care, reduction of gas emissions, social policy, stability pact, stability programme

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   EUROPEAN COMMISSION  Brussels, 5.6.2019  COM(2019) 507 final  Recommendation for a COUNCIL RECOMMENDATION on the 2019 National Reform Programme of Ireland and delivering a Council opinion on the 2019 Stability Programme of Ireland    
 
 
Recommendation for a 

COUNCIL RECOMMENDATION 

on the 2019 National Reform Programme of Ireland and delivering a Council opinion on 
the 2019 Stability Programme of Ireland 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 121(2) and 148(4) thereof, 

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of 
the  surveillance  of  budgetary  positions  and  the  surveillance  and  coordination  of  economic 
policies1, and in particular Article 5(2) thereof, 

Having  regard  to  Regulation  (EU)  No  1176/2011  of  the  European  Parliament  and  of  the 
Council  of  16  November  2011  on  the  prevention  and  correction  of  macroeconomic 
imbalances2, and in particular Article 6(1) thereof,  

Having regard to the recommendation of the European Commission, 

Having regard to the resolutions of the European Parliament, 

Having regard to the conclusions of the European Council, 

Having regard to the opinion of the Employment Committee, 

Having regard to the opinion of the Economic and Financial Committee, 

Having regard to the opinion of the Social Protection Committee, 

Having regard to the opinion of the Economic Policy Committee, 

Whereas: 

(1) 

On 21 November 2018, the Commission adopted the Annual Growth Survey, marking 
the start of the 2019 European Semester for economic policy coordination. It took due 
account  of  the  European  Pillar  of  Social  Rights,  proclaimed  by  the  European 
Parliament, the Council and the Commission on 17 November 2017. The priorities of 
the  Annual  Growth  Survey  were  endorsed  by  the  European  Council  on  21  March 
2019.  On  21  November  2018,  on  the  basis  of  Regulation  (EU)  No  1176/2011,  the 
Commission also adopted the Alert Mechanism Report, in which it identified Ireland 
as one of the Member States for which an in-depth review would be carried out. On 
the  same  date,  the  Commission  also  adopted  a  recommendation  for  a  Council 
recommendation on the economic policy of the euro area, which was endorsed by the 
European  Council  on  21  March  2019.  On  9  April  2019,  the  Council  adopted  the 

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OJ L 209, 2.8.1997, p. 1. 
OJ L 306, 23.11.2011, p. 25. 

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(2) 

(3) 

(4) 

(5) 

recommendation  on  the  economic  policy  of  the  euro  area  (‘Recommendation  for  the 
euro area’).  

As a Member State whose currency is the euro and in view of the close interlinkages 
between the economies in the economic and monetary union, Ireland should ensure the 
full and timely implementation of the Recommendation for the euro area, as reflected 
in recommendation (1) and (3) below. In particular, focusing economic policy related 
to investment in the specified areas and introducing tax measures will help address the 
second  euro  area  recommendation  as  regards  supporting  investment,  public  finances 
improvements and fight against aggressive tax planning. 
The 2019 country report for Ireland3 was published on 27 February 2019. It assessed 
Ireland’s progress in addressing the country-specific recommendations adopted by the 
Council  on  13  July  2018,  the  follow-up  given  to  the  recommendations  adopted  in 
previous years and Ireland's progress towards its national Europe 2020 targets. It also 
included  an  in-depth  review  under  Article  5  of  Regulation  (EU)  No  1176/2011,  the 
results  of  which  were  also  published  on  27  February  20194.  The  Commission’s 
analysis led it to conclude that Ireland is experiencing macroeconomic imbalances. In 
particular,  large  stocks  of  public  and  private  debt  and  net  external  liabilities  make 
Ireland vulnerable to adverse shocks but the flow variables have continued to improve. 
The  stock  of  private  debt  remains  high  but  economic  growth  is  continuing  to  help 
reduce  it.  The  activities  of  multinationals  continue  to  influence  corporate  debt. 
Household  debt  appears  broadly  in  line  with  fundamentals  although  it  is  high 
compared  with  disposable  income.  Government  debt  is  projected  to  remain  on  a 
downward trajectory, while the deficit is moving closer to a balanced position. House 
prices have been growing at a rapid pace for a number of years but have slowed down 
recently.  House  prices  are  largely  driven  by  supply  constraints  and  there  is  no  clear 
evidence of overvaluation. The stock of non-performing loans, although still high, has 
decreased further even if long-term arrears are falling at a slower pace.  

On  17  April  2019,  Ireland  submitted  its  2019  National  Reform  Programme  and,  on 
29 April  2019,  its  2019  Stability  Programme.  In  order  to  take  account  of  their 
interlinkages, the two programmes have been assessed at the same time. 

Relevant country-specific recommendations have been addressed in the programming 
of  the  European  Structural  and  Investment  Funds  ('ESI  Funds')  for  the  2014-2020 
period.  As  provided  for  in  Article  23  of  Regulation  (EU)  No  1303/2013  of  the 
European  Parliament  and  of  the  Council5,  where  it  is  necessary  to  support  the 
implementation of relevant Council recommendations, the Commission may request a 
Member  State  to  review  and  propose  amendments  to  its  Partnership  Agreement  and 
relevant programmes. The Commission has provided further details on how it would 
make use of that provision in guidelines on the application of the measures linking the 
effectiveness of the ESI Funds to sound economic governance6.  

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SWD(2019) 1006 final. 
COM(2019) 150 final. 
Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 
laying  down  common  provisions  on  the  European  Regional  Development  Fund,  the  European  Social 
Fund,  the  Cohesion  Fund,  the  European  Agricultural  Fund  for  Rural  Development  and  the  European 
Maritime  and  Fisheries  Fund  and  laying  down  general  provisions  on  the  European  Regional 
Development  Fund,  the  European  Social  Fund,  the  Cohesion  Fund  and  the  European  Maritime  and 
Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p. 320). 
COM(2014) 494 final. 

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(6) 

(7) 

(8) 

(9) 

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Ireland is currently in the preventive arm of the Stability and Growth Pact and subject 
to the debt rule. In its 2019 Stability Programme, the government expects the headline 
balance  to  improve  to  0.2%  of  GDP  in  2019  and  to  continue  to  gradually  improve 
thereafter to 1.3% of GDP in 2023. Based on the recalculated structural balance7, the 
medium-term  budgetary  objective,  set  at  a  structural  deficit  of  0.5%  of  GDP,  is 
planned  to  be  reached  by  2020.  According  to  the  Stability  Programme,  the  general 
government  debt-to-GDP  ratio  is  expected  to  fall  to  61.1%  in  2019  and  to  continue 
declining  to  51.6%  in  2023.  The  macroeconomic  scenario  underpinning  those 
budgetary projections is plausible. At the same time, the measures needed to support 
the planned deficit targets from 2020 onwards have not been sufficiently specified. 

On  13  July  2018,  the  Council  recommended  Ireland  to  achieve  the  medium-term 
budgetary objective in 2019. This is consistent with a maximum nominal growth rate 
of net primary government expenditure8 of 7.0% in 2019, corresponding to an allowed 
deterioration  in  the  structural  balance  of  0.3%  of  GDP.  Based  on  the  Commission 
2019  spring  forecast,  Ireland  is  expected  to  comply  with  the  recommended  fiscal 
adjustment in 2019. 

In  2020,  Ireland  should  achieve  its  medium-term  budgetary  objective.  Based  on  the 
Commission 2019 spring forecast, this is consistent with a maximum nominal growth 
rate  of  net  primary  government  expenditure  of  3.7%9,  corresponding  to  an  annual 
structural  adjustment  of  0.7%  of  GDP.  Ireland  is  forecast  to  reach  the  medium-term 
budgetary  objective.  General  government  debt  is  forecast  to  remain  on  a  firm 
downward path beyond the requirements of the debt rule. Overall, the Council is of the 
opinion  that  Ireland  is  projected  to  comply  with  the  provisions  of  the  Stability  and 
Growth  Pact  in  2019  and  2020.  In  view  of  the  difference  between  measurements  of 
GDP  and  domestic  output  in  Ireland  and  the  associated  impact  on  the  debt-to-GDP 
ratio, Ireland's current cyclical conditions and the heightened external risks, the use of 
any  windfall  gains  to  further  reduce  the  general  government  debt  ratio  would  be 
important. 

Public  finances  have  further  improved  on  the  back  of  robust  output  growth,  but  the 
risks of revenue volatility remain, and there is scope for making revenue more resilient 
to  economic  fluctuations  and  adverse  shocks.  Limiting  the  scope  and  number  of  tax 
expenditures and broadening the tax base would improve revenue stability in the face 
of economic volatility. While Ireland has increased the lower value added tax rate on 
tourism  activities,  some  recent  tax  measures  have  focused  on  cuts  and  reliefs. 
Moreover, Ireland has further potential to improve the way its tax system can support 
environmental objectives. Such efforts could include reducing fossil fuel subsidies and 

Cyclically-adjusted  balance  net  of  one-off  and  temporary  measures,  recalculated  by  the  Commission 
using the commonly agreed methodology. 
Net  primary  government  expenditure  comprises  total  government  expenditure  excluding  interest 
expenditure,  expenditure  on  Union  programmes  fully  matched  by  Union  funds  revenue  and  non-
discretionary  changes  in  unemployment  benefit  expenditure.  Nationally  financed  gross  fixed  capital 
formation  is  smoothed  over  a  4-year  period.  Discretionary  revenue  measures  or  revenue  increases 
mandated by law are factored in. One-off measures on both the revenue and expenditure sides are netted 
out. The expenditure benchmark for Ireland reflects an adjustment to correct for a distortion to the 10 
year reference rate  of potential growth caused by the  exceptionally  high surge in real GDP growth in 
2015.  Following  the  approach  taken  by  the  Irish  authorities  in  their  Budget  2017  calculations,  the 
Commission has taken the average of potential growth rates in 2014 and 2016. 
As in 2019, the expenditure benchmark reflects an adjustment to correct for a distortion to the 10-year 
reference rate of potential growth caused by the exceptionally high surge in real GDP growth in 2015. 

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providing a stronger price signal to investors by committing to a schedule of increases 
in the carbon tax over the next decade. 

(10)  The  fight  against  aggressive  tax  planning  is  essential  to  make  tax  systems  more 
efficient  and  fair  as  acknowledged  in  the  2019  euro  area  recommendation.  Spillover 
effects of taxpayers' aggressive tax planning strategies between Member States call for 
a  coordinated  action  of  national  policies  to  complement  EU  legislation.  Ireland  has 
taken  measures  against  aggressive  tax  planning,  but  the  high  level  of  royalty  and 
dividend payments as a percentage of GDP suggests that Ireland’s tax rules are used 
by  companies  that  engage  in  aggressive  tax  planning.  Limited  application  of 
withholding  taxes  on  outbound  (i.e.  from  EU  residents  to  third  country  residents) 
royalty and dividend payments made by companies based in Ireland may lead to those 
payments  escaping  tax  altogether,  if  they  are  also  not  subject  to  tax  in  the  recipient 
jurisdiction. 

the  Sláintecare  Programme  Implementation  Office 

(11)  Long-term fiscal sustainability risks related to the cost of ageing remain. Spending on 
healthcare is projected to rise from 4.1% of GDP in 2016 to 5.1% in 2070, with a peak 
of  5.2%  in  2063.  Though  there  are  aspects  of  the  healthcare  system  in  Ireland  that 
work well or have improved, the system is inefficient, struggles to meet demand and 
does not deliver coordinated, integrated care. In order to mitigate against the escalating 
pressures  of  demand,  the  Irish  government  approved  the  Sláintecare  Implementation 
Strategy  and  set  up 
to 
comprehensively reform and modernise Ireland's  health and social  care services over 
the  next  10  years.  The  planned  reform  represents  a  credible  vision  for  making  the 
health  system  universally  accessible  and  sustainable,  meeting  the  demands  of  an 
ageing  population  and  shifting  care  into  the  community,  with  a  stronger  focus  on 
prevention. This  is  likely to  have a positive impact  in  reducing the reliance on acute 
care,  thereby  making  healthcare  more  cost-effective.  However,  implementation  is 
endangered  by  the  health  system’s  difficulties  in  addressing  the  duplicate  health 
insurance  market  and  effectively  managing  its  own  budget,  performance  and 
workforce in  the short term. Short-term  costs will also  need to  be contained to  fulfil 
the Sláintecare vision in the long run.  

(12)  Despite  past  government  efforts  to  contain  spending  on  public  pensions,  the  overall 
deficit  of  the  pension  system  is  expected  to  grow  significantly  in  the  long  term  as  a 
result of pension expenditure rising from 5% of GDP in 2016 to 6.6% in 2070, with a 
peak of 7.5% in 2053. A full and timely implementation of the presented roadmap for 
pension reform is key to making the Irish pension system more fiscally sustainable. 

(13) 

Increased investment in skills, education and training as well as in social inclusion are 
essential  for  improving  Ireland’s  productivity  and  long-term  inclusive  growth.  The 
tightening labour market and the emerging skills shortages and mismatches in certain 
sectors call for efforts to reach out to inactive groups of potential workers and to invest 
in  under-tapped  human  capital.  There  is  scope  for  promoting  upskilling  and  better 
aligning education curricula and vocational training to labour market needs. The low 
percentage  of  the  workforce  with  basic  digital  skills  calls  for  further  investment  in 
workplace based training and upskilling of the adult workforce. Investing in access to 
quality  and  affordable  childcare  and  rolling  out  the  National  Childcare  Scheme  will 
help  increase  women's  rather  low  employment  rate.  The  participation  rate  of  people 
with disabilities in the labour market is  among the lowest in Europe. The number of 
people living in households with low work intensity remains one of the highest in the 
EU,  highlighting  the  scope  for  more  integrated  and  targeted  activation  strategies  to 
support this particular group. 

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(14)  Years of low investment after the economic bust are taking their toll on the availability 
of affordable and social housing and of appropriate infrastructure in the areas of clean 
transport  and  energy,  water  and  ultrafast  broadband,  which  in  turn  pose  barriers  to 
business  investment.  Moreover,  greenhouse  gas  emissions  from  road  transport  have 
increased strongly in the last 5 years. Improved infrastructure, combined with spatial 
planning,  could  be  a  critical  enabler  for  improving  the  housing  supply,  increasing 
private  investment,  boosting  productivity  growth,  and  ensuring  balanced  regional 
economic development.  Future-proof  connectivity  and sufficient digital  skills  remain 
crucial  for  domestic  companies  to  effectively  utilise  digital  technology  and  for  a 
thriving  domestic  information  and  communications  technology  sector.  Significant 
challenges  remain  in  relation  to  access  to  ultrafast  broadband,  in  particular  in  rural 
areas. More infrastructure investment in clean energy, clean and public transport and 
water  services  as  well  as  intensified  efforts  in  the  field  of  decarbonisation,  energy 
efficiency,  renewable  energy  and  the  circular  economy  would  help  Ireland  in  its 
transition towards a low-carbon and environmentally resilient economy.  

(15)  While  the  launch  of  the  National  Development  Plan  could  eventually  lead  to  the 
provision  of  additional  basic  infrastructure,  the  weak  capacity  of  the  construction 
sector  could  become  an  obstacle  to  its  timely  delivery.  Furthermore,  diversifying 
maritime transport and energy connections with continental Europe could increase the 
resilience of the economy to external shocks. Ireland has so far failed to decouple its 
economic  growth  from  the  emissions  of  greenhouse  gases  and  air  pollutants. 
Greenhouse  gas  emissions  have  steadily  risen,  in  particular  in  transport,  agriculture, 
energy  and  the  built  environment.  Lack  of  progress  in  this  area  will  make  it  more 
difficult for Ireland to meet its EU obligations, while also increasing the cost of future 
action.  

(16)  Persistent supply shortages, coupled with increasing demand, continue to fuel rises in 
property  prices.  Although  prices  did  not  seem  overvalued  in  2017,  affordability  is 
becoming a concern. Housing supply shortages are also affecting social housing due to 
insufficient  investment  and  builds  over  the  last  decade.  While  annual  demand  is 
estimated at about 72 000 units, just 10 000 are planned for delivery in 2019. A further 
17  000  persons  are  to  be  assisted  through  Ireland's  Housing  Assistance  Payment  or 
Rental  Accommodation  Scheme,  but  this  risks  exacerbating  rent  increases  in  the 
private  rental  market  where  supply  is  already  constrained.  A  large  number  of  social 
homes  are  under-occupied,  notably  in  the  Dublin  area,  in  part  due  to  outdated 
succession  practices.  The  inadequate  mix  in  the  types  of  social  houses  provided 
together with the very limited amount of affordable and cost-rental accommodation are 
factors  further  aggravating  the  situation.  This  has  resulted  in  a  steady  rise  in  the 
number of people and families living in emergency accommodation with homelessness 
figures reaching new highs in February 2019. 

(17)  Fostering  the  innovation-driven  productivity  of  domestic  firms  is  crucial  to  support 
more  robust  and  resilient  productivity  growth  in  the  country.  Business  research  and 
development  expenditure  continues  to  increase  but  it  remains  below  the  EU  average 
and highly concentrated in the foreign-owned firms. There is scope to gear innovation 
policies to better support Irish small and medium enterprises. Indirect support (i.e. tax 
credits) remains the main instrument of public support for research and development 
in  Ireland  (accounting  for  80%  of  total  public  support).  Stronger  linkages  between 
multinationals  and  domestic  firms  could  help  to  improve  the  diffusion  of  innovation 
throughout  the  economy.  In  addition,  closer  cooperation  between  firms  and  public 
research centres would also increase the innovation potential.  

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(18)  Although the low levels of public research and development continue to cause concern 
(1.05% of GDP compared to an EU average of 2%), the recently adopted Future Jobs 
Ireland 2019 programme provides a promising framework to stimulate innovation and 
technological  change and improve the productivity of small and medium  enterprises. 
However,  its  full  implementation  will  depend  on  a  significant  increase  in  public 
expenditure  on  research  and  innovation  and  the  translation  of  the  recently  adopted 
programme into concrete policy measures. As it stands, this ambitious list of measures 
still lacks important details and precise implementation dates. For instance, for actions 
to  be  taken  in  2019,  no measures  have  been  identified  to  increase  the  availability  of 
long-term  equity  investment  to  support  indigenous  companies  in  scaling  their 
business; the policy mix to incentivise small and medium enterprises to invest in new 
technologies  combines  tax  credit  and  non-tax  incentives  to  encourage  small  and 
medium  enterprises  to  invest  in  innovation,  but  the  relative  magnitude  of  these 
measures  remains  unknown.  While  the  strategy  recognises  the  importance  of 
broadband  infrastructure  for  productivity,  no  specific  actions  and  deliverables  are 
planned to address the gap between Ireland and other EU countries when it comes to 
rolling  out  future-proof  broadband  networks  in  line  with  EU  2025  Gigabit  Society 
targets. 

(19)  Regional  disparities  in  Ireland  are  significant  and  have  been  increasing  over  the  last 
decade.  Ireland  has  rather  high  regional  economic  disparities  compared  to  other  EU 
countries in terms of GDP per capita. Between 2000 and 2016, GDP per capita in the 
Southern and Eastern region increased by 74%, 63 percentage points more than in the 
Border, Midland and Western region and the increase accelerated after 2012. By 2016, 
GDP  per  capita  in  the  Southern  and  Eastern  region  was  2.6  times  higher  than  in  the 
Border,  Midland  and  Western  region.  The  Dublin  area,  with  40%  of  Ireland’s 
population, contributed by 62 percentage points to GDP growth between 2000-2016. 

(20)  Regulatory  barriers  to  entrepreneurship  (in  particular  certain  regulations  related  to 
commercial  property  and  legal  services)  negatively  affect  firm  entry  and  exit  and 
thereby the productivity of indigenous Irish firms. Barriers to entry into retail markets 
represent  a  challenge.  Ireland  scores  among  the  top  five  countries  with  the  greatest 
number  of  procedural  requirements  as  regards  the  establishment  of  retail  outlets. 
Retailers face procedural obstacles which delay and increase the costs of opening new 
shops and may have a negative impact on market structure and dynamics.  

(21)  The  new  Legal  Services  Regulation  Act  remains  to  be  implemented,  as  the 
introduction  of  regulations  continues  to  experience  significant  delays,  even  if 
preparatory  consultations  are  ongoing.  Allowing  for  direct  professional  access  to 
barristers on contentious matters as well as for legal persons to become partners in all 
types of legal practices remain uncertain possibilities. Overly complex operation and 
management rules for multidisciplinary practices are, on the other hand, to be avoided. 
An  ambitious  implementation  of  open-ended  reforms  is  a  matter  of  top  priority. 
‘Ambition  2.3’  in  the  Future  Jobs  Ireland  2019  programme  is  supposed  to  tackle 
problems with the cost of legal services, but the only deliverable in 2019 is tentative 
and  the  timing  is  ambiguous.  Delays  in  implementing  this  reform  contributes  to  the 
high cost of legal services in Ireland, to the detriment of business, small and medium 
enterprises  in  particular,  and  individuals.  Since  legal  services  are  an  important  input 
for  other  business  services,  restrictions  in  that  sector  contributes  to  the  high  cost  of 
other services (e.g. insurance). 

(22)  Non-performing loan ratios have continued to  fall and were down by 3.4 percentage 
points to 7.8% in the year up to the third quarter of 2018. Banks are well on track to 

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meet  their  reduction  targets,  supported  by  portfolio  sales,  restructuring  efforts  and 
rising  property  prices.  Long-term  mortgage  arrears  (over  2  years  past  due)  remain 
relatively  high,  helping  to  keep  the  non-performing  loan  ratio  above  the  euro  area 
average. A number of initiatives and draft bills, such as the ‘no consent, no sale’ bill 
have been proposed to address the social and economic impact of non-performing loan 
resolution,  including  for  vulnerable  households.  The  credit  register  became  fully 
functional  for  consumer  loans  in  2018  and  will  be  crucial  for  assessing  whether 
borrowers are capable of servicing their debts.  Insolvency  procedures and the use of 
in-  and  out-of-court  options  for  arrears  resolution  remain  limited.  Further  reducing 
long-term  mortgage  arrears  while  building  on  initiatives  for  vulnerable  households 
without  creating  undue  obstacles  for  non-performing  loans  resolution  remains  a 
challenge and requires continued monitoring.  

(23)  The programming of EU funds for the period 2021-2027 could help address some of 
the  gaps  identified  in  the  recommendations,  in  particular  in  the  areas  covered  by 
Annex  D  to  the  country  report10.  This  would  allow  Ireland  to  make  the  best  use  of 
those funds in respect of the identified sectors, taking into account regional disparities. 

(24) 

(25) 

(26) 

In  the  context  of  the  2019  European  Semester,  the  Commission  has  carried  out  a 
comprehensive  analysis  of  Ireland’s  economic  policy  and  published  it  in  the  2019 
country  report.  It  has  also  assessed  the  2019  Stability  Programme  and  the  2019 
National  Reform  Programme  and  the  follow-up  given  to  the  recommendations 
addressed  to  Ireland  in  previous  years.  It  has  taken  into  account  not  only  their 
relevance  for  sustainable  fiscal  and  socioeconomic  policy  in  Ireland,  but  also  their 
compliance with Union rules and guidance, given the need to strengthen the Union’s 
overall  economic  governance  by  providing  Union-level  input  into  future  national 
decisions.  

In  the  light  of  this  assessment,  the  Council  has  examined  the  2019  Stability 
Programme and is of the opinion that Ireland is expected to comply with the Stability 
and Growth Pact. 

In the light of the Commission’s in-depth review and this assessment, the Council has 
examined  the  2019  National  Reform  Programme  and  the  2019  Stability  Programme. 
Its recommendations under Article 6 of Regulation (EU) No 1176/2011  are reflected 
in recommendations (1) to (3) below. 

HEREBY RECOMMENDS that Ireland take action in 2019 and 2020 to: 

1. 

2. 

3. 

Achieve  the  medium-term  budgetary  objective  in  2020.  Use  windfall  gains  to 
accelerate  the  reduction  of  the  general  government  debt  ratio.  Limit  the  scope  and 
number of tax expenditures, and broaden the tax base. Continue to address features 
of the tax system that may facilitate aggressive tax planning, and focus in particular 
on outbound payments. Address the expected increase in age-related expenditure by 
making the healthcare system more cost-effective and by fully implementing pension 
reform plans.  

Provide personalised active integration support and facilitate upskilling, in particular 
for  vulnerable  groups  and  people  living  in  households  with  low  work  intensity. 
Increase access to affordable and quality childcare.  

Focus investment-related economic policy on low carbon and energy transition, the 
reduction  of  greenhouse  gas  emissions,  sustainable  transport,  water,  digital 

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  EN 

 
                                                 
infrastructure  and  affordable  and  social  housing,  taking  into  account  regional 
disparities.  Implement  measures,  including  those  in  the  Future  Jobs  strategy,  to 
diversify  the  economy  and  improve  the  productivity  of  Irish  firms  –  small  and 
medium  enterprises  in  particular  -  by  using  more  direct  funding  instruments  to 
stimulate  research  and 
to 
entrepreneurship.  

innovation  and  by  reducing  regulatory  barriers 

Done at Brussels, 

For the Council 
The President 

EN 

8 

  EN