Chambers Ireland calls for action on costs as business confidence rebounds

03 November 2026

Ireland risks squandering renewed business confidence unless persistent pressures on the cost of doing business are addressed, Chambers Ireland Chief Executive Ian Talbot has warned.

The comments follow the publication of the Eurochambres Economic Survey 2027 at the SME & Clusters Assembly taking place in Dublin as part of the EU Presidency activities. The survey is Europe’s largest business sentiment survey and based on responses from more than 40,000 businesses across 27 countries.

Speaking at the launch of the Irish results, Mr Talbot said that while confidence among Irish businesses has strengthened since last year, persistent cost pressures continue to constrain their growth:

“There is plenty to welcome in these results. We are finding that businesses are looking towards 2027 with a lot of confidence and expectations around exports, investment and employment are all positive.

The overriding concern is that the same competitiveness pressures are coming back year after year. The national figures show that labour costs remain the biggest challenge for Irish businesses, with energy affordability close behind. Both are putting investment, hiring and expansion decisions under increasing pressure.

Our strong economic performance cannot become an excuse for overlooking the challenges facing businesses on the ground. We need a much sharper focus on the cost of doing business and faster delivery of critical infrastructure, alongside a determined effort to reduce the regulatory burden on businesses of all sizes.

Companies are ready to invest and grow where the conditions are right. Ireland must remain competitive enough for them to do that here.”

The Irish results strike a more optimistic note than the wider European confidence outlook. While businesses here are generally positive about prospects for exports, investment and employment in 2027, confidence across Europe is set to creep down, moving below its ten-year average.

National and export sales expectations have both shifted positively for the first time in several years, driven by recovering domestic demand, stronger global demand and a partial normalisation of trade conditions. Yet employment expectations are negative for the fourth consecutive year. Investment expectations are less negative than in the previous two years but remain below their historical average.

Energy costs and affordable access to raw materials have overtaken labour costs as businesses’ top challenge for the year ahead. The regulatory and administrative burden ranks second, labour costs third and the lack of skilled workers fourth. Financing conditions and trade barriers rank lower, although many SMEs face trade barriers within the single market as much as beyond it.

Commenting on the overall findings, Eurochambres President Vladimír Dlouhý said:

“European businesses continue to demonstrate their resilience. But resilience without confidence is not a basis for growth. The gap between the political commitments made by EU policy makers – not just in Brussels, but also in the member states – and the daily experience of a small business owner remains far too wide. The midpoint of this Commission mandate is the moment to accelerate, not to consolidate.”

Chambers Ireland and Eurochambres are calling on EU and national policymakers across Europe to:

  • Treat energy affordability as a first-order competitiveness issue. This means investing in clean domestic generation, grids and storage, and speeding up permitting.
  • Turn simplification into real relief. Swiftly implement the Omnibus simplification packages, accelerate the Regulatory Deep Cleaning Action Plan, monitor actual savings for SMEs and stop gold-plating.
  • Ease the cost of hiring. Consider targeted relief for labour-intensive sectors.
  • Close skills gaps. Support training and apprenticeships and make qualifications easier to recognise across borders.
  • Help SMEs adopt digital and AI technologies. Expand investment incentives through InvestEU and the Digital Europe Programme and make digital and AI skills training more accessible for smaller businesses.
  • Improve SMEs’ access to finance. Make progress on the Savings and Investments Union to deepen equity and debt markets for smaller businesses and make sure sustainable finance rules do not indirectly exclude SMEs from bank lending.
  • Complete the single market, especially for services, and conclude pending trade agreements with strong SME provisions.

-ENDS-

For more information contact shane.hughes@chambers.ie

About Eurochambres:

Eurochambres is the European Association of Chambers of Commerce and Industry, its members being national Chambers of Commerce throughout the EU and EU aspirant countries. Established in 1958 as a direct response to the creation of the European Economic Community, Eurochambres represents over 20 million businesses throughout Europe. Eurochambres is the leading voice for the broad business community at EU level, building on Chambers’ strong connections with the grass roots economy and their hands-on support to entrepreneurs. Chambers’ member businesses – over 93% of which are SMEs – employ over 120 million people.

Irish Results:

  1. Labour costs (63%)
  2. Energy costs and access to raw materials (57%)
  3. Regulatory and administrative burdens (50%)
  4. Lack of skilled workers (34%)
  5. Financing conditions (23%)
  6. Trade barriers (17%)

The top two challenges have remained for three consecutive years.

Links to additional information:

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