Why Ibec’s Bold Move for New Competitiveness Plan Could Shake Up the Entire Business Landscape—But Only If Funding Arrives Now

Can Ireland navigate the stormy seas of global economic uncertainty and still come out shining as a beacon of competitiveness and resilience? With the Government’s freshly minted Action Plan on Competitiveness and Productivity, it’s clear they’re not just hoping for the best—they’re gearing up with 85 sharp, targeted moves to future-proof the Irish economy. But here’s the kicker: a plan this ambitious needs muscle, and that means serious funding must follow in the Budget to make those bold ideas stick. From slashing red tape that’s been choking SMEs for too long, to igniting innovation with a brand-new National Artificial Intelligence Office, this 124-page roadmap is more than just talk—it’s a battle plan for thriving in a rapidly shifting global landscape. As someone who’s watched businesses both rise and crumble amid change, I’m keenly interested in seeing if these measures can truly transform Ireland’s economic stage. Buckle up, Ireland—this could be the game-changer we’ve been waiting for. LEARN MORE

Ibec has welcomed the Government’s new Action Plan on Competitiveness and Productivity aimed at increasing Ireland’s international competitiveness and resilience.

The business group described the plan as “very positive and important step in future-proofing Ireland’s economic model in a time of global change”.

But said the funding needed to be put in place in the Budget to “provide the necessary resources to underpin the ambitions laid out in the plan”.

The initiative is designed to boost innovation, investment and productivity in key areas of the economy, in light of the evolving geopolitical and international trade environment.

The 124-page plan, which covers six key areas, will contain 85 actions, of which 26 are described as priority actions.

The key areas listed in the plan include: embracing research, innovation and skills, boosting FDI and exports and influencing at EU Level, creating and scaling more SMEs, regulating for growth and controlling costs.

It also highlights the need to increase the State’s capacity to deliver infrastructure, as well as growing sustainable Irish businesses and boosting regional development.

Amongst the headline measures being proposed is the introduction of what has been dubbed a ‘Red Tape Challenge’ across Government to significantly reduce regulation for SMEs.

Also aimed at helping SMEs is the commitment to establish an SME Scaling Fund to increase the available public capital for direct and indirect investment to support scaling.

The plan outlines the intention to set up a National Artificial Intelligence Office (NAIO), which will, they say, drive innovation and uptake in AI.

The measures have been welcomed by Ibec Executive Director of Lobbying and Influence, Fergal O’Brien.

“Over the past year we have experienced unprecedented levels of global trading uncertainty and our competitiveness has been significantly undermined in our vital trading relationship with the US,” said Mr O’Brien.

“Day-to-day investment decisions have been delayed or paused, global economic realignment is taking shape in boardrooms worldwide, and businesses are actively planning for different future scenarios.

“This Action Plan sets out practical and time-bound measures to improve Ireland’s overall competitiveness.

“It is vital to ensure that we secure future international investment while creating the right conditions for Irish businesses to grow and internationalise.

“We are especially pleased to see a number of our key asks from the Our Business Ambition campaign reflected in today’s announcement, including greater ambition for innovation investment, a commitment to increase public funding to match our competitors, reform of the R&D tax credit, and the development of a new national Life Sciences Strategy.”

He continued: “Ibec has long highlighted the negative impact of excessive regulatory burdens on businesses, especially SMEs.

“The inclusion of a ‘Red Tape Challenge’ to reduce regulation across all sectors, and the application of an SME test across all government measures, is an important step forward.

“Infrastructure remains the single biggest challenge to Ireland’s competitiveness.

“We welcome the commitments to remove barriers to delivery, such as legal reforms, expediting the EPA Bill, and implementing the outstanding elements of the Kelly Report to accelerate investment decisions.

“Finally, the plan recognises the challenges posed by Ireland having some of the highest energy prices in Europe. This recognition is welcome as are plans to examine ways to reduce these costs.

“These proposals must become tangible if we are to continue to be competitive in energy intensive sectors.”

Taoiseach Micheál Martin said: “Ireland’s economy continues to show strong resilience in the face of international uncertainty, but we cannot take this economic success for granted.

“Increasing our competitiveness and productivity today is of the utmost importance as we work to secure our economy tomorrow.

“This whole-of-Government Action Plan on Competitiveness and Productivity is designed to address the challenges we face and drive the necessary action and reform needed to help Ireland, our businesses, and our people thrive into the future.”

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