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Ireland lacks a medium-term fiscal plan, risking a €14B deficit due to short-term budgeting and volatile tax reliance.
Ireland’s fiscal watchdog, the Irish Fiscal Advisory Council, has warned the government is operating without a medium-term fiscal plan, lacking forecasts beyond 2026 and failing to meet EU requirements.
The council criticized short-term budgeting, rising spending, and heavy reliance on volatile corporation tax, warning that without long-term planning, the state faces fiscal risks, including a potential €14 billion deficit when excess tax receipts are excluded.
It urged multi-annual budgeting, stronger fiscal rules, and improved savings to ensure stability amid challenges like an ageing population and climate change.
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Irlanda carece de un plan fiscal a medio plazo y corre el riesgo de un déficit de 14 000 millones de euros debido a la elaboración de presupuestos a corto plazo y a la dependencia volátil de los impuestos.