The Irish government is weighing a substantial €1.4 billion support package aimed at rescuing small and medium-sized enterprises (SMEs) from the brink of collapse due to soaring operational costs.
High-level discussions are underway between Taoiseach Simon Harris and Minister for Enterprise Peter Burke, with proposals including direct cash grants, temporary commercial rate reductions, and enhanced liquidity schemes for retailers in Dublin, Cork, and other urban centres.
Why This Matters Now
Business groups have issued urgent warnings as:
- Energy bills have doubled since 2021
- Wage costs increased by 12% in 2023
- One in five independent retailers risk closure within six months
Potential Relief Measures
The package may feature:
- €5,000-€20,000 survival grants for qualifying SMEs
- 30% discount on Q3 commercial rates
- Expansion of the Tax Debt Warehousing Scheme
Dublin's Capel Street traders report foot traffic declines of 40%, while Cork city centre vacancies have reached a 15-year high.
Political & Economic Context
This intervention comes as:
- Ireland's Q1 2024 GDP growth slowed to 1.2%
- Consumer spending fell 3.8% year-on-year
- The European Commission projects 2.1% inflation for Ireland in 2024
Final proposals are expected before the Dáil summer recess in mid-July, with implementation targeted for September 2024.
