James Geoghegan (Dublin Bay South, Fine Gael)
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11. To ask the Minister for Finance if he can detail the key impact of the ESRI working paper, The Impact of Deglobalisation and Protectionism on a Small Open Economy - The Case of Ireland, on policy in his Department; and if he will make a statement on the matter. [15839/25]

Catherine Connolly (Galway West, Independent)
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15. To ask the Minister for Finance further to Parliamentary Question No. 2 of 13 February 2025, the analysis to establish the impact that US tariffs will have on the economy; the preparations being made to deal with this issue; and if he will make a statement on the matter. [15673/25]

James Geoghegan (Dublin Bay South, Fine Gael)
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My question relates to the policy response to tariffs that were hypothetical when I tabled it and that are now real. I am concerned about a creeping narrative emerging from certain quarters within the Opposition, and Sinn Féin in particular, which seeks to pitch Ireland against Europe in the response. Does the Minister agree that in our response to this we need more, and not less, Europe? The Single Market now stands as a shining light for free trade and the rule of law. What we need in response is Europe working together.

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 11 and 15 together.

The Single Market is the best answer we have to this. We are speaking about the need to grow trade to take the place of trade that may be lost. The best place to do this is on our own doorstep. We have on our doorstop this incredible creation, which Irish politicians and diplomats have spent decades trying to craft, which is the Single Market. We need to plough on with realising the potential it still offers.

We also need to continue to remind and make the case to the people of Ireland that the cause and catalyst of the difficulty we are now confronting are the decisions that have been taken by President Trump. We acknowledge that there are issues relating to the flow of trade and the impact these can have on communities. We are all aware of them and we all need to engage. The measures that have now been instigated will have a significant effect on the world and on Ireland in line with the forecast the Department of Finance published two weeks ago. The only reason the European Union wants to consider measures to respond is in order that we can approach the negotiating table in a strong position. We do so because of the Single Market. We must also be willing to outline the steps we are willing to take. The cause of this is not action taken by the European Union.

James Geoghegan (Dublin Bay South, Fine Gael)
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I thank the Minister. There is no sugar-coating the tariff announcements made yesterday evening. We are only beginning to understand their effects. It is now the reality that the United States, which started globalisation, is seeking to bring an end to it. We in the European Union need to be proud of what we have done in developing the largest single market in the world. We need to ensure we do more in Europe to better enhance in particular our banking market and the impact this can have. The history of Europe has always been forged in crisis. The response to these crises has always made Europe better and led to more prosperity and more peace. We need to ensure that Ireland remains at the heart of this. We need to take measures at domestic level. Most of this will be in the form of investment in infrastructure. As a result of the decisions we have made in the past, we have the money available to make that investment.

Catherine Connolly (Galway West, Independent)
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I do not think I can agree with Deputy Geoghegan on Europe being a shining light of the application of the rule of law but that is not for now. I understand there is uncertainty. I have read the ESRI report on how it will affect our exports and jobs. It is all being debated here this morning. I have listened to the debate and I have heard what the Minister has said. Long term we absolutely need to diversify. Obviously we need diplomatic efforts now, and we need various steps, but in the medium to long term we need to diversify our economy. We have been warned for a very long time about the urgent need to do this. Coming from Galway city I am acutely aware of the value of the big pharmaceutical and medical devices companies based there, with almost 12,000 people working in them. They have significant implications for the city in terms of spending power. We need to diversify. We need to put a big emphasis on indigenous industries.

Paschal Donohoe (Dublin Central, Fine Gael)
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Deputy Geoghegan has laid out a compelling case, with which I agree, regarding Europe's place in the world and what we have built up in the Single Market and by means of the rule of law. The argument we need to make is that if people invest in Ireland and Europe, if they employ people in Europe and if they want to create new ideas and be entrepreneurs in Europe, they will do so in a very stable environment in which they can be clear about the rules of regulation, trade and taxation. We need to make the case for this and we will do so in the time to come.

With regard to Deputy Connolly's point on diversification, we need to continue to diversify our economy. This is not something we will be starting, however, because it is already under way. For many decades we have we have been supporting our indigenous employers through Enterprise Ireland. We have also diversified the number of international employers we have but we need to continue this work.