Steadying the ship
Dominic Carman
As uncertainty becomes the new normal, how are Irish law firms still thriving?
Ireland is in expansion mode. Next year, its government spending will increase by 7.4% (equivalent to €8.1bn). Thanks to a tax windfall, derived from global US tech and pharma firms with large Irish operations, corporation tax receipts are forecast to exceed €32bn this year and €34bn in 2026. Critically, these windfalls are further boosted by companies holding intellectual property in Ireland: without that additional factor, the country would be running a budget deficit. But having enjoyed budget surpluses over the past three years, the government’s 12% increase in infrastructure spending is widely supported, particularly given the upgrades required in housing, energy and transport. In July 2025, the annual World Competitiveness Rankings from the International Institute for Management Development named Ireland as the most competitive country in the euro area and the seventh most competitive global economy. However, Ireland’s performance in basic infrastructure was ranked 44th of 69 countries, down from 38th place last year.
When making his budget statement, Ireland’s finance minister Paschal Donohoe told the Dáil that “public finances are in good shape” although “uncertainty is the defining feature of the global economy this year”. Ireland has certainly experienced that uncertainty at first hand – not least because of Donald Trump’s economic agenda. Having resumed his role as Taoiseach in January, Micheál Martin visited the newly re-elected president at the White House in March. “I love this guy,” Trump told reporters, pointing at Martin, before accusing Ireland of stealing the US pharmaceutical industry and tax revenues that should belong to the US treasury. “The Irish are smart people,” Trump said. “You took our pharmaceutical companies and other companies … This beautiful island of five million people has got the entire US pharmaceutical industry in its grasps.” Together, pharmaceuticals and medical devices account for 65% of total goods exported from Ireland and 90% of products sold to the US. In a dramatic escalation of his protectionist trade agenda, Trump announced widespread tariffs in April, followed by an EU-wide deal capped at 15% across member states, agreed in July. Critically, that includes pharmaceuticals.
Uncertainty still prevails, requiring law firms and their clients to be pragmatic.
