The current energy crisis is the “worst the world has ever seen,” but “this is not 2008” according to Tánaiste Simon Harris.
Coalition leaders will meet this week to consider further measures to try to mitigate the global fuel crisis caused by the ongoing US-Israel war on Iran.
The Government is bracing for a months-long cost-of-living crisis, which would become worse if the conflict were to continue into the winter months of this year.
The meeting at the most senior levels of the Irish Government this week will come as the European Commission also examines more targeted measures to respond to the ongoing energy crisis. The bloc of member states will consider emergency measures similar to those implemented in 2022 in the wake of the Russian invasion of Ukraine.
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Fuel prices are expected to once again rise this week, which would effectively eliminate any benefit to a previously announced €250 million energy support package. Electricity prices and the cost of groceries are also expected to rise in the medium term.
At a domestic level, citizens will also be advised to try to cut down on their own energy use in order to try to suppress household expenses.
Speaking at the Easter Rising commemoration in Dublin on Sunday, Minister for Finance Harris said it is “hard to overstate the significance of the energy crisis that we’re living through now, which is the worst the world has ever seen.”
He said he, Taoiseach Micheál Martin and Minister of State Seán Canney will have a specific meeting on Wednesday “dedicated to the issue of energy.” Senior officials will brief the coalition leaders on Ireland’s energy supply and security. The Government has consistently said there are not yet any plans to implement fuel rationing in Ireland.
“I would also say this to the Irish people, while this is a moment of challenge, this is not 2008. The Irish economy is in a strong position, we have a country with full employment, our economy is growing, fiscal buffers are built up and this is not an Irish created solution,” Harris said.
On Sunday, a Sunday Independent/Ireland Thinks poll said 82 per cent of voters are concerned there could be a recession in the coming year, and 56 per cent believe it will be as bad as or worse than the 2008 financial crash.
Harris said it would be “premature” and “foolish” to rule any measures in or out. He said while there are no immediate concerns about energy supply to Ireland, “the situation is obviously fast evolving.”
Harris said it was “prudent” for the Government to bring forward advice on how households, businesses and the public service can try to minimise their energy usage while the crisis is ongoing.
Some of this advice will be based on guidance issued by the International Energy Agency, which includes trying to work from home where possible, reducing fuel consumption by driving at slower speeds, car pooling and using more public transport.
There are concerns at the most senior levels of Government about a much harsher cost-of-living crisis in the winter months, if the war continues.
“It’s a very different crisis in the summer months than it could be in the winter months. So obviously, we hope to see this war end. I think there’s, it’s true to say there’s an economic challenge no matter what happens. The economic challenge, though, is easier to manage if the war comes to an end,” he said.
“My concern is, though, if this war continues through a winter period - where there’s always an increased demand on energy - that becomes a more challenging situation.”
