ISME (Irish Small and Medium Enterprises Association) has issued a stark warning that Ireland is “sleep-walking into its next economic crisis” unless urgent reforms are made to address unsustainable spending, industrial policy, and systemic inefficiencies in key areas.
ISME’s priorities for reform have been communicated to the negotiating teams of political parties ahead of the new Programme for Government. These include:
- Reorienting Industrial Policy Towards Indigenous Enterprise: Stronger alignment between the Department of Enterprise and the Department of Finance to support home-grown businesses.
- Comprehensive Legal Reform: Ireland’s outdated legal system is slowing infrastructure development, discouraging inward investment, and making affordable housing, family law, and commercial dispute resolution unattainable for many. ISME criticised the current Defamation Reform Bill, describing it as disproportionately favouring rent-seeking legal interests at the expense of businesses and citizens.
- Efficient Expansion of State Services: ISME highlighted that while Ireland’s population growth necessitates an expansion of state services, inefficiencies in services such as healthcare stem from managerial, not financial, issues.
- Sustainable Social Contributions: To avoid spiralling government debt, ISME has proposed reforms to PRSI contributions. These would see all workers contribute 2% PRSI on earnings up to €424 per week and 6% on the remainder, reducing PRSI payments for full-time workers earning up to €848 per week.
- Upskilling the Workforce: With over €1.5 billion sitting in the National Training Fund surplus, ISME emphasised the urgent need for greater allocation of these funds toward workplace skills development and lifelong learning.
Neil McDonnell, Chief Executive of ISME, said: “We must act now to address these systemic issues if Ireland is to remain competitive and resilient. Political leaders have a responsibility to commit to bold reforms that safeguard our economic future while enabling businesses to thrive. The Exchequer largesse that has enabled Ireland’s unsustainable increases in current spending cannot be relied upon in the years ahead. We must learn from the painful lessons of the 2008-2012 economic crash and ensure that Irish businesses and families are protected from a repeat of that suffering.”
For further details on ISME’s Programme for Government proposals, visit: Program-for-Government-2025.pdf
Issued on behalf of ISME by Heneghan
For Information:
Neil McDonnell / ISME – (087) 299 5658 (available for comment)
Nigel Heneghan – (086) 258 7206 – nigel@heneghan.ie
Rory Sweeney – (086) 897 6442 – rory@heneghan.ie
