Joan Burton (Dublin West, Labour)
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136. To ask the Minister for Finance the preparations his Department made in advance of the national economic dialogue regarding the fiscal space for USC and income tax reductions; and if he will make a statement on the matter. [32372/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I take it the Deputy is referring to the National Economic Dialogue 2017 which took place in Dublin Castle last month. The Programme for Partnership Government contains a commitment that budget measures will involve at least a 2:1 split between public spending and tax reductions. This commitment is also contained in the confidence and supply agreement with Fianna Fáil.

The most recent published estimate of the net fiscal space available for 2018, as set out in Budget 2017 last October, is €1.2 billion. I have set out previously that the carryover-cost of measures introduced in Budget 2017 amounts to c.€700 million, leaving c.€500 million available for allocation in Budget 2018 for tax and expenditure measures. The next estimate of the fiscal space for 2018, will be set out in the Summer Economic Statement 2017, which is due to be published this week.

Joan Burton (Dublin West, Labour)
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137. To ask the Minister for Finance if his officials have examined the European Commission decision in respect of tax breaks for employees in Sweden when they exercise their share options; and if he will make a statement on the matter. [32374/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, on a foot of a review of share based remuneration conducted in 2016, it was announced in the last Budget that work had commenced on the development of a new, SME-focussed, share-based incentive scheme, to be introduced in Budget 2018. It was noted that such an incentive would require the approval of the European Commission and that officials would be engaging with the Commission to ensure that the incentive would comply with State Aid rules in advance of the next Budget.

Work on this new incentive is ongoing. In this regard my officials are engaging with the European Commission in relation to satisfying EU State Aid rules. My officials have examined the Commission decision that the Deputy refers to, and have noted its contents particularly with regard to its relevance to the ongoing negotiations.