DAVY VIEW

Despite Ireland’s strong fiscal position, the Summer Economic Statement included a surprisingly modest €8.5bn headline amount for Budget 2027. This was in line with December’s exchequer medium-term ceilings – even though net primary expenditure in 2025 was below projections by €3.5bn. While we expect that the economy will grow stronger than expected, and that this will lead to spending overruns, the Government has made improving the efficiency of public spending a welcome priority for Budget 2027.