EU Council sets Ireland fiscal and climate policy recommendations

The Council of the European Union has issued a recommendation on Ireland’s economic, social, employment, structural and budgetary policies for 2026-2027.

• The recommendation sets maximum net expenditure growth for Ireland and calls for reinforced defence spending, temporary and targeted energy-price measures, a broader tax base, and continued health-system cost effectiveness efforts.
• It also urges Ireland to sustain RRF and cohesion-policy reforms, increase public and business R&D, reduce fossil fuel reliance, expand renewables, modernise grid infrastructure, and ensure large energy users such as data centers are linked to additional renewable capacity and system flexibility.