Ireland's €1.2bn pay deal threatens €105bn budget framework

Ireland's Finance Minister Jack Chambers faces a €1.2 billion public sector pay bill that could breach the government's €105 billion spending envelope, set just six months ago. The pay deal, agreed in eight days, risks destabilizing next year's budget and may force spending cuts or tax increases. The development signals fiscal strain in Ireland's coalition government, with implications for its credibility on fiscal rules.