The country's largest public service trade union, Fórsa, has warned that proposed new economic rules, published yesterday by the European Commission, risk the return of austerity.
The union said the new proposals betray a failure of the European Commission to learn from its own mistakes.
Current rules limit member state budget deficits to 3% of GDP, and debt to 60% of GDP.
However, these have been suspended since 2020 in response to the economic consequences of the pandemic. The suspension is to end in 2024.
"These new proposals would mean that, from next year, any member state with a deficit above 3% will have to make a minimum fiscal adjustment of 0.5% of GDP per year," Fórsa's General Secretary Kevin Callinan said.
"There are currently 10 member states with a deficit above 3%. It means those states will have to begin making choices about spending cuts next year. This, in turn, risks opening the way back to austerity," Mr Callinan said.
He also welcomed comments by Transport Minister Eamon Ryan on the need to grow investment in the public service.
"This reflects the need to balance fiscal rules with social targets on an ongoing basis. The EU Commission needs to embrace the idea," Mr Callinan said.
