The threat of Ireland losing investment due to its recognition of Palestine “doesn’t hold any water,” according to the Finance Minister.

It follows a warning by Israeli Ambassador Dana Elrich yesterday that people from Israel, who are employed or investing in the Irish tech sector, are now reconsidering their position.

Ireland’s recognition of a Palestinian state will be formalised today - along with Norway and Spain - and their flag flown at Leinster House.

Investment threats

On Newstalk Breakfast, Minister Michael McGrath said he hasn’t heard any threats to pull investment over the decision.

“As Minister for Finance, I have no indication and no evidence of any negative impact on Ireland in terms of investor sentiment or any negative investment impact on any individual sector,” he said.

“You could never rule out the possibility that individual investors might take a view based on geopolitics or a political decision made by the Government.

“We have extensive engagement with the tech sector, very good relationships with these companies; they are here for many reasons, principally talent.

“There is no indication that the claim by the Israeli ambassador holds any water.”

Minister for Finance Michael McGrath and Minister for Public Expenditure National Development Plan Delivery and Reform Paschal Donohoe outside Leinster House ahead of Budget 2024's announcement.

Minister McGrath said his Department is actively working on Budget 2025.

“The date for the budget will be set by Cabinet and myself and Minister Donohoe will bring a memo to Government in the coming weeks," he said.

“There are no plans to change the normal date which is early to mid-October.”

Temporary measures

The Finance Minister warned there will be a shift away from temporary measures in the upcoming budget and couldn’t confirm if energy credits will be continued.

“I do think the emphasis should be on permanent measures rather than temporary fixes," said Minister McGrath.

“[Temporary fixes] were appropriate when inflation was very volatile but is now coming back into much more normal territory and we just need to get the balance right for the budget.

“With inflation normalising again at around 2%, that means our approach to budgeting has to be normalised as well.”

Mairead McGuinness is seen at the European Parliament in Brussels. Picture by: European Parliament

Minister McGrath batted away the suggestion he may not be Finance Minister when the budget comes around, amid speculation he could become Ireland’s next European Commissioner.

“There’s lots of speculation about lots of different things but I am completely focused on the job, a job I love, and I believe I will be here in Autumn to deliver the finance part of the budget,” he said.

“I’m already making those decisions and the issue of the appointment of Ireland’s commissioner will be dealt with at some point after local and European elections.”

Former Fine Gael MEP Mairead McGuiness is the current commissioner, and her term is set to end later this year.

Main image: Minister for Finance Michael McGrath arriving for cabinet, 20-03-2024. Image: Leah Farrell/RollingNews