Ireland Increases Infrastructure Spending 23% to €112B After Tax Windfall

The Irish government is making a historic €112 billion investment in infrastructure over the next five years, marking a 23% increase in spending to address long-standing challenges in housing, energy, water, and transport. This National Development Plan aims to build 300,000 homes by 2030, with €36 billion allocated specifically to housing efforts, alongside significant funding for energy and water infrastructure to support this growth. The boost in investment is partly fueled by a €14 billion back-tax payment from Apple and proceeds from bank share sales, enabling a 'step change' in public investment, according to Prime Minister Micheal Martin. Ireland's infrastructure has lagged behind competitor economies by around 32%, and this plan seeks to reverse that trend by expanding capital spending from 5.35% to 6.65% of national income by 2030. The government also plans a €9.4 billion budget package for 2026, including tax cuts and a 6.4% increase in day-to-day spending, but may reduce this if U.S. tariffs worsen under President Donald Trump's trade policies. Overall, the plan reflects a strategic effort to leverage multinational tax revenues to address critical infrastructure deficits and improve living conditions for Ireland's growing population.