This week is right in the middle of what we could reasonably call “transatlantic diplomacy season”.
The season runs from January to March, beginning with the World Economic Forum, where world leaders convene to set global economic and strategic priorities. That is quickly followed by the February Munich Security Conference, and later by the anniversary of the war in Ukraine, with European leaders urging Washington to maintain even the most basic level of support for Ukraine’s defence.
From an Irish perspective the season is rounded off by the St Patrick’s Day visit of the Taoiseach to the White House. The trip forms part of an extensive programme of ministerial visits to the US, which in 2026 includes nine senior Irish political figures.
This year’s season has been complicated by a fresh twist on trade policy. The US Supreme Court quashed the Trump administration’s sweeping global tariffs imposed under IEEPA – a law that gives the president authority to regulate international commerce in declared emergencies. In response, the President committed to imposing new global tariffs under Section 122 of the Trade Act of 1974, which allows tariffs by presidential decree but only for a maximum of six months.
It goes without saying that this casts doubt over the trade deal struck by the EU and US last summer. On Monday the European Parliament once again paused the ratification of that deal, having previously halted progress during the Greenland crisis.
This is becoming the new normal for transatlantic relations. As in 2025, Micheál Martin’s 2026 visit to the White House will be a nervy affair. He and his likely successor Simon Harris will need to get used to it. If the first full year of President Trump’s second term has taught us anything, it is to expect the unexpected: if it’s a disruptive Supreme Court decision this year, it will be something else next year.
Political update
Minister McEntee to reconsider refusal to take part in €150bn EU security fund
Minister for Defence Helen McEntee has expressed hope that Ireland will reconsider its position and participate in a €150 billion EU financial package aimed at rapidly scaling up defence capabilities. Speaking before the Oireachtas Committee on Defence and National Security on Thursday, the Minister outlined that the Government aims to deliver a “significantly enhanced defence capability by 2028” after which Ireland would be “moving as quickly as possible to develop defence capabilities that would match those of other small western European countries”.
Ireland joined the EU’s Security Action for Europe (SAFE) fund last June, but only on the basis of contributing its own money towards joint EU procurement of military equipment, to avail of economies of scale on purchases of equipment such as body armour. Last September, the Government informed the EU that Ireland would not be seeking loans from the fund, which was established to support the strengthening of Europe’s defence capabilities
Ireland’s first National Maritime Security Strategy was also published this week, focused on safeguarding the maritime domain from security threats. Addressing the vulnerability of undersea cables, the Minister said protection of the maritime zone would be upgraded and a forum involving private cable owners established within months.
Economic Update
Rising house evaluations drive net household wealth growth
The wealth of the richest 10% of households in Ireland totalled €709.3 billion at the end of September 2025, more than five times the combined wealth of the bottom half of the population, with housing remaining the single biggest asset nationwide.
Overall, household net wealth increased by almost €48.3 billion in the third quarter, pushing the total to just over €1.3 trillion, according to the Central Bank of Ireland. The rise was largely fuelled by higher property values. In total, households held €589 billion in financial assets, including €218.6 billion in currency and deposits and €272 billion in insurance and pension entitlements. Meanwhile, total liabilities, predominantly made up of long-term loans, rose slightly by €1.1 billion to €157.1 billion.
Wealth remains unevenly distributed, with the top 10% of households accounting for 49.2% of all net wealth. The bottom 50% hold just 8.9% of national wealth - although their holdings increased by €4.8 billion over the quarter.
Helen Carbery, chief executive of the Credit Union Development Association, welcomed the overall rise in household wealth but struck a cautious note. With economic growth expected to slow in 2026, she said it will be important for households to maintain strong budgeting habits and continue building savings.
Sustainability Update
EU Council signs off simplification of sustainability reporting and due diligence requirements
On Tuesday, the EU Council gave its final green light to the simplification of the sustainability reporting and due diligence requirements for companies, with an aim to boost competitiveness and allow for greater flexibility for businesses across Europe.
The legislation simplifies the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDD) by reducing reporting burdens and limiting the trickle-down effect of obligations on smaller companies.
Overall, the number of firms required to report is about 70% lower than before the regulations were renegotiated, leaving out industries such as textiles and mining. The CSDD no longer requires mandatory climate transition plans, although some climate-related disclosure obligations still apply under the CSRD, and the omnibus package will also remove the harmonised EU civil liability regime and access to third-party representative actions.
Nele Meyer, director of the European Coalition for Corporate Justice, commented: “Unfortunately, significant amendments to the law introduced as a result of an aggressive and highly coordinated lobbying campaign driven by a handful of powerful multinational corporations have stripped out key climate, environmental and human rights protections from the final text,”.
Around the World
Brazil scraps Amazon River concessions plan following backlash from Indigenous Council
In Brazil, a major political win was secured for Indigenous groups after more than a month of protests at a Cargill facility in the Amazon. President Luiz Inácio Lula da Silva revoked a decree that would have opened up Amazon waterways to private concessions, a move Indigenous communities said threatened their lands and the environment. The decision has sparked debate over Lula’s environmental policies and the balance between development and conservation.
After 33 days of protests, Lula’s government formally announced the revocation of the decree on Monday. The decision marks a major victory for the Indigenous movement, which argued that dredging projects threaten the Tapajos River, Indigenous territories and the ecological balance of the world’s largest rainforest. Leaders of the Tapajós and Arapiuns Indigenous Council have praised the move as more than just a political concession, saying it affirmed their struggle to protect their ancestral homeland.