“You can be assured that Prudent Paschal has been replaced in the Department of Finance by Simon, who will be sensible.”
Simon Harris has taken over as Minister for Finance in recent weeks, following Paschal Donohoe’s departure to take up a new role as Chief Knowledge Officer at the World Bank.
In a recent interview with the Irish Daily Mail, Mr Harris described himself as “sensible,” a remark that drew criticism from opposition figures. Paul Murphy TD responded by warning Mr Harris to “not continue to be Scrooge.”
So, what does “Sensible Simon” represent for Ireland’s students?
While much of Ireland’s fiscal policy has already been outlined in Budget 2026 and shaped by European Union policy, Mr Harris still retains discretion over government spending. His decisions now will shape the economic conditions students face now in education and when they graduate, from housing availability to job security and public supports.
Currently, Mr Harris appears committed to following through on recent budget measures, including maintaining the permanent €500 reduction in college fees, bringing them down to €2,500. Last year, students benefited from a once-off €1,000 reduction, meaning fees will effectively be €500 more expensive this academic year. However, the move does offer some security for students and their families, knowing what fees to budget for next year.
Housing policy is another critical issue for students, housing is in short supply and will only continue to be into the future with the government missing their housing targets again in 2025.
Mr Harris recently announced a €600 million equity injection into the housing market via his Substack, @tanaistesimonharris.
“Housing is the single biggest worry for families and young people across this country. It dominates conversations around the dinner table,” Mr Harris said.
This funding is aimed at SMEs and smaller builders, providing them with seed capital to secure larger loans and begin construction. If successful, the initiative could increase housing supply and ease pressures on rents. Mr Harris cited the 2023 Home Building Programme, which followed a similar approach, as evidence that this strategy could deliver positive results.
Beyond Budget 2026, Mr Harris has also published the Government’s Medium-Term Fiscal and Structural Plan, which he described as a “fundamental change” in Irish budgetary policy. Required under new EU fiscal rules, the plan will be submitted to the European Commission in the new year.
In practical terms, this plan signals reduced government spending across most sectors over the next three years. Such cuts could directly affect areas that matter most to young people, including housing supports and education funding.
The Irish Fiscal Advisory Council (IFAC) has also raised concerns about government savings. Only €1 of every €7 in corporation tax receipts will be saved next year, representing a sharp drop in saving. In a submission to the Oireachtas Committee on Budgetary Oversight, the IFAC warned that savings will fall to 15 per cent in 2026, down from 32 per cent this year.
“This is a marked shift in policy. It means the public finances are less well prepared for the next economic downturn and predictable budgetary pressures,” the watchdog said.
