Employers’ group Ibec has called on the Irish Government to boost investment in national defence and security, citing rising global risks as a major concern for businesses operating in the country.
In a position paper published ahead of Ireland’s upcoming EU presidency, Ibec highlighted defence and security as essential for safeguarding economic activity and ensuring long-term competitiveness. The organisation said robust security underpins business confidence by protecting supply chains, enabling transactions, and reinforcing the rule of law.
“The geopolitical shocks of recent years have shown that competitiveness cannot be separated from security,” Ibec said. “The ability to protect, adapt, and innovate has become an economic imperative.”
Chief executive Danny McCoy said Ireland’s security infrastructure is vulnerable to external threats and called for a realistic assessment of the country’s defence capabilities. He stressed that strengthening security does not conflict with Ireland’s neutrality. “Neutrality does not mean being defenceless. Being part of the defence of Europe is to make our contribution, and this can be in non-lethal aspects like radar systems and cybersecurity,” he said.
Mr McCoy urged the Government to aim for Level 3 capability within the timeframe currently set for Level 2 under the Commission on Defence Forces’ plans. Achieving this would require roughly double the current planned investment. He noted that businesses rely on the state to protect critical assets, including undersea cables, the national grid, and energy infrastructure, while also defending against cyber threats.
Ibec highlighted that recent international events, including the visit of Ukrainian President Volodymyr Zelensky, have placed Ireland’s vulnerabilities under the global spotlight. “In the future world of investment, a country will need to demonstrate its ability to defend and secure assets. This is critical not just for protection, but for future economic prosperity,” Mr McCoy said.
The organisation pointed to dual-use technologies, cybersecurity, and protection of critical infrastructure as areas where European competitiveness and security intersect. It said businesses now see these issues as central to trade, investment, and technological flows.
Ibec argued that a stronger focus on resilience is vital for Ireland to maintain its economic position and ensure confidence among investors. “Neutrality should not prevent Ireland and Irish business from playing an active role in shaping a European approach to resilience that balances competitiveness and open markets with security and defence,” the paper said.
The group’s call for greater defence spending comes as Ireland prepares to assume the EU presidency, offering an opportunity to prioritise security measures at a European level. Ibec said that aligning business priorities with national defence investment is essential for protecting both economic and strategic interests.
