The publication of the Summer Economic Statement (SES), forms a key part of the reformed budgetary process designed to complement the Stability Programme Update (SPU). Underpinned by the macroeconomic outlook set out in April as part of the SPU, the SES will broadly set out what the Government believes to be the appropriate fiscal policy for the year to come, taking into account Ireland’s stage in the economic cycle.
Whilst the economy is forecast to continue to grow strongly over the coming years, the SES will reflect the need to avoid any policy measures which could contribute to overheating in the economy. As a small open economy we are exposed to a number of external risks, particularly in relation to Brexit, changes in the international tax landscape and rising geopolitical tensions, all of which have the potential to destabilise our economy. The Government is cognisant of these risks and recognises the need to plan for the future and manage our resources in a prudent fashion. Given the uncertainty we face over the coming years we need to continue to focus on enhancing our competitiveness and building up resilience in our public finances.
The SES is designed to facilitate a discussion of the options available in advance of the Budget in October. The scrutiny provided by the Budget Oversight Committee and other Committees form an important role in these budgetary considerations and I look forward to engaging with the relevant Committees as part of this process.
I aim to publish the SES in the summer to allow sufficient time for these Committees to complete their work.