Paschal Donohoe cites a “regime change” into a high-inflation economy

Finance Minister Paschal Donohoe said Ireland and other European countries were “in the early days” of “significant regime change” towards economies with high inflation and high interest rates.

Mr Donohoe, peaking at a Scale Ireland event in Dublin today, declined to give any indication of what’s coming in the budget but said the government must plan for “significant regime change” in the economy. He also said the budget must take into account “challenges around the corner”, citing the energy crisis and energy-related security concerns.

However, he said the economy remains strong, noting that the national debt is “remarkably close to pre-pandemic levels”.

“We are in the very early days of a very significant regime change in national and European economies from very low inflation and low interest rates to at least temporarily higher than usual inflation and interest rates that are clearly changing,” he said.

The Scale Ireland event was held to hear tech entrepreneurs’ views on what is good and bad about doing business in Ireland and to urge changes to tax laws and regulations affecting tech companies .

At the event, unicorn moneylender Wayflyer co-founder Jack Pierse said the country’s top tax rates are one of the biggest obstacles to encouraging more entrepreneurs. “That’s the main problem for us,” he said. “It doesn’t feel right.”

In response, Mr Donohoe said he would “consider it”.

Mr. Pierse, whose company is valued at $1.6 billion and recently received $250 million in additional debt financing, also cited an overabundance of “paperwork” when trying to access government support and grants searched.

“I remember being asked what I would be doing in five years. I told them I didn’t know where I would be in three months,” he said.

When asked about the main reason for his company’s success, he said, “Selling money is a pretty good thing.” Paschal Donohoe cites a “regime change” into a high-inflation economy

Fry Electronics Team

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