A significant competitiveness challenge facing businesses today is the high inflation environment and rising input prices, especially energy prices. This is damaging to the enterprise sector if the sudden rise in the costs of doing business cannot be absorbed by some firms, resulting in the closure of otherwise viable enterprises.

Soaring energy prices accounted for almost half of the increase in inflation in April 2022. The Bulletin advocates an urgent focus on projects that help diversify energy supply sources and that upgrade Ireland’s electricity infrastructure. These actions will not only improve Ireland’s energy security and help achieve our climate action targets but will also help to insulate Irish enterprises and households from future volatility in the international prices of fossil fuels.

While international price developments (including in energy) are outside Ireland’s control, the Bulletin points to the importance of implementing domestic reforms to boost productivity and reduce costs. This includes delivery across a range of recommendations set out in the Council’s last annual report, Ireland’s Competitiveness Challenge 2021.

The bulletin can be accessed here.

The accompanying press release is available here.