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flag Ireland’s 2026 budget sparks concern over economic overheating despite improved fiscal health.

flag Finance Minister Paschal Donohoe acknowledged concerns over economic risks similar to 2008, as multiple institutions warned the government’s proposed 9.4 billion euro Budget 2026—featuring 7.9 billion in new spending and 1.5 billion in tax measures—could overheat the economy. flag Labour’s Ged Nash criticized the lack of fiscal discipline, transparency, and a clear spending framework, warning tax cuts without broadening the tax base could threaten long-term stability. flag Donohoe highlighted Ireland’s improved fiscal position, with debt falling from over 120% of GDP to just above 60%, and emphasized 22 billion euros in reserve funds by 2026, stating tax measures align with expected growth-driven revenue and stressing the need for responsible investment.

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