Tuesday marked the Chinese New Year, the start of the Year of the Fire Horse, and it was certainly a week under fire for the Government.
The government faced a flurry of criticisms from backbenchers and opposition alike, following notification letters to schools last week advising them of changes to their SNA allocation for the year ahead. A reported lack of context in the letters created what has been referred to as a ‘PR disaster’ around the review, with confusion surrounding the timing of the changes and the impact on overall SNA numbers, which are actually set to increase to a record high. The opposition was quick to smell blood, and united in their criticisms of the move, describing the decision as “devastating”, and accusing the government of stripping away vital supports. While the review is now ‘on pause’, the move has done little to clarify the situation, and Tánaiste Simon Harris admitted it had been an “extraordinarily upsetting and difficult week” for those impacted.
It was a challenging week on the health front as well, with Government coming under pressure from the An Coimisiún Pleanála decision to overturn planning permission for a proposed critical care unit at the Rotunda Hospital. While the Taoiseach expressed disappointment and emphasised the independence of the planning authority, Opposition figures attributed the outcome to policy ambiguity, describing the long-standing uncertainty around the proposed co-location of the Rotunda with Connolly Hospital, first raised in 2015, as a “nonsensical” contributing factor in the refusal. Separately, an independent review into Child and Adolescent Mental Health Services (CAMHS) in north Kerry exposed serious service deficiencies, with hundreds of children deemed to have been placed at risk of harm. Minister Mary Butler conceded that the children involved had been “failed by the State”.
For a government whose leadership has long promised to champion disability and mental health, it will be a week they’re glad to see the end of – though Opposition will be unlikely to let them forget it any time soon. While the Year of the Horse is said to signal momentum, this will certainly not be the momentum government would have hoped for, especially with two by-elections on the not-too-distant horizon.
Political Update
Government Pauses Under-16 Social Media Ban as EU-Level Approach Takes Priority
The Government has announced that it is not currently drafting legislation to ban under-16s from accessing social media, despite previous commitments from Ministers, including Tánaiste Simon Harris, to introduce such restrictions. Instead, it plans to work with the European Union and other like-minded countries to examine possible age limits, particularly for those under 16.
While Cabinet approved a new digital and artificial intelligence strategy this week, it contains no commitment to legislate on age-based access. A Government spokesperson confirmed that no domestic legislation is in preparation at this time. Instead, a pilot age-verification scheme is expected to commence early this year, with enabling legislation to follow.
Engagement with industry has been mixed, with some companies, including Google, in discussions with the Department, while others have yet to confirm participation. Independent MEP Michael McNamara has cautioned that an EU-wide ban may conflict with the European Commission’s current policy direction. This area is expected to be a priority for Irelands upcoming EU Presidency The debate unfolds against the backdrop of significant litigation in the United States examining claims that social media platforms are addictive for children.
Economic Update
Irish business confidence at lowest level since pandemic
Business confidence in Ireland has dropped sharply to 54%, marking its lowest point since the Covid-19 pandemic and a steep decline from 81% at the beginning of last year. The latest Grant Thornton International Business Report (IBR) points to a clear weakening in sentiment among Irish companies over the past twelve months, reflecting mounting pressures on firms.
According to the report, businesses in Ireland are contending with growing global uncertainty alongside increasing operational costs. While optimism among companies worldwide remains significantly higher at 74%, this figure still represents a 2% decline compared with the previous year.
Speaking on RTÉ’s Morning Ireland, Martin Shanahan, Partner and Head of Global Industry at Grant Thornton, identified two main factors behind the significant drop in confidence. The first is international volatility, as mid-market firms closely monitor global developments and assess the potential impact on their operations, while the second relates to the rising cost of doing business, particularly higher labour and energy expenses.
Sustainability Update
Department of Climate to invest €35 million in local-level climate action projects
Almost €35 million in funding has been announced to support climate action projects in communities across Ireland. Minister for Climate, Energy and the Environment Darragh O’Brien has said the investment underlines the Government’s commitment to helping local authorities deliver practical, place-based climate measures tailored to local needs.
The majority of the funding, €30 million, will go to the START scheme (Supporting a Sustainable Transition through Climate Action for a Resilient Territory). This programme will back Local Authority-led infrastructure projects and feasibility studies aligned with the EU Just Transition Fund. It will focus on improving energy efficiency in public and community buildings, expanding sustainable transport and strengthening community engagement.
A further €4.9 million will support broader climate initiatives. Cork, Dublin and Galway will share €2 million to advance their goal of climate neutrality by 2030 under the EU Climate Neutral and Smart Cities Mission. Additional funding includes €1.5 million for Decarbonising Zones, support for northern and western regional projects, and increased funding for Climate Action Regional Offices.
Around the World
Hungary’s parliamentary elections
Hungary’s 2026 parliamentary election campaign has intensified as the April 12 vote draws closer, with key issues such as Ukraine, the European Union and domestic reform dominating political discourse. Prime Minister Viktor Orbán’s ruling Fidesz party has focussed on strong anti-Ukraine and Eurosceptic messaging, portraying EU policies and Ukraine’s role in the region as threats to Hungarian security, with state media and government spokespeople amplifying many of these themes.
Opposition leader Péter Magyar, head of the centre-right Tisza party, formally launched his campaign in Budapest, positioning himself as a pro-Western alternative to Orbán after leaving Fidesz. Magyar has pledged to tackle corruption, improve economic conditions and reverse what he describes as Hungary’s drift away from Europe under Orbán’s leadership. His party is ahead in several polls and gaining traction among voters dissatisfied with long-standing Fidesz dominance.