Dáil Éireann Debate, Wednesday - 17 December 2025
202. Deputy Seán Ó Fearghaíl asked the Minister for Enterprise, Tourism and Employment the key measures taken to boost Ireland’s competitiveness during 2025; his priorities for 2026; and if he will make a statement on the matter. [73145/25]
Amharc ar fhreagraIreland holds a strong competitive position globally. This is reflected in our current position as the 7th most competitive country worldwide in the latest IMD World Competitiveness Rankings. Among EU member states, Ireland ranks 2nd.
This performance is driven by a number of core strengths, including a well-educated labour force, robust economic growth, and our continued ability to attract high-value foreign direct investment. However, our ranking has slipped by five places over the last two years, highlighting that we cannot rely on past success. There are clear pressures weighing on our competitive standing, and our strengths must be actively maintained.
Given the pace of global change and the uncertainty in the international environment, it is essential that we tackle long-standing structural weaknesses as well as new risks as they emerge. Put simply, we need to concentrate on the areas directly within our control. Persistent cost pressures – particularly in energy, labour, and regulatory compliance – continue to strain business competitiveness. Ireland’s rapid expansion has also exposed constraints in the country’s physical infrastructure capacity, and structural barriers to continued rapid economic development.
In response to international economic developments, and in line with a commitment in the Programme for Government, we expedited the preparation of an Action Plan on Competitiveness and Productivity. The Action Plan was published on the 10th of September. The Plan takes a whole-of-Government approach, focusing on domestic levers that influence competitiveness. Its preparation involved substantial engagement across Government Departments and consultations with external partners, including targeted bilateral discussions on infrastructure, housing, and research and innovation.
Crucially, The Plan is anchored in the evidence and analysis of the National Competitiveness and Productivity Council, particularly the Council’s annual Competitiveness Challenge report. This analytical foundation ensured that the measures proposed are well-targeted, proportionate, and forward-looking.
Overall, the Action Plan contains 85 actions for enhancing our competitiveness and productivity performance, with 26 of these identified as priority actions, and covers industrial policy, reducing the cost and regulatory burden on business, investing in infrastructure, digital regulation and reform, energy reform, international trade and research and development, and innovation. To ensure accountability, each action has been assigned to a government department or agency, which will have responsibility for its delivery within a specified time-period.
The Action Plan stands as a flagship initiative and one of the central measures taken in 2025 to strengthen Ireland’s competitiveness and address emerging structural challenges. Although Ireland performs strongly by international benchmarks, the overarching aim of the Action Plan is to safeguard and enhance this position by improving productivity, strengthening economic resilience, deepening the indigenous enterprise base, and continuing to attract investment and skilled talent. Meaningful progress is already underway on several priority actions that will reinforce Ireland’s competitive position. This will form an important backdrop to the 2026 Competitiveness Summit, which will review the first implementation report on the Action Plan.
