The decision by members of Fine Gael, Fianna Fáil and the Green Party to back the Programme for Government negotiated by their party leaders has been warmly welcomed by business groups.

Ibec CEO, Danny McCoy, described the development as very positive as it provides the certainty, unity and stability required for these times.

"The presence of a strong, stable Executive is imperative if we are to effectively address collectively the many existing and emerging economic and societal issues facing the country," he said.

"However, the most immediate and urgent action for the new Government is to legislate for the ambitious and far reaching economic stimulus required to get people back to work and reboot business."

Chambers Ireland said decision making for businesses during the economic crisis brought about by the Covid-19 pandemic had been made more difficult by the lack of surety regarding the makeup of government.

It echoed the call from Ibec for clarity around business supports and the July economic package, which it said must include continuity of the Temporary Wage Subsidy Scheme, as well as simplification and expansion of the restart grant process.

Chief Executive Ian Talbot said it is vital that the new government acts boldly to minimise the extent of the damage to the economy.

"Those parts of the economy that have suffered least from the Covid-19 Crisis will likely be most affected by Brexit in the new year, and the form of Brexit that is looking most probable now will be far closer to World Trade Organisation rules than what we are working with now," he said.

The Irish Exporters' Association said the ratification of the Programme for Government was a step towards bringing a greater degree of certainty to Irish businesses as the Covid-19 economic fallout becomes realised and Brexit looms in the coming months. 

"I welcome today’s formation, however, I would call on the Government to get to work with pace and reach out to stakeholders that have made an important contribution to the outgoing Government’s response to Brexit and COVID-19," said Simon McKeever, chief executive of the IEA.

"Whilst we need to continue to deal with the impact of COVID-19 on our businesses, I am getting increasingly concerned about the state of preparedness for Brexit."

"There have been a number of developments in the last few months that have implications for traders and we need to bring a sharp focus back to it – and rapidly."