TÁNAISTE SIMON HARRIS has said he wants a new savings scheme for Ireland’s middle classes to be approved by the government “in the first half of this year” and for the proposals to form part of this year’s Budget. 

Last week, Harris said he wanted to incentivise savings and investments in Ireland, admitting that the country is a “laggard at a European level”.

On Wednesday, the Fine Gael leader and finance minister told his parliamentary party at Leinster House that there is €170 billion on deposit in financial institutions in Ireland.

This money is mainly held in traditional savings accounts that offer low interest rates, despite rising inflation. 

Harris said the coalition is looking at publishing a roadmap on what a strategy to incentivise Irish people to save and invest might look like.

Questioned today about the proposal in Brussels, where the Tánaiste is attending the February Eurogroup and ECOFIN meetings, Harris said he wanted the proposals “as early as possible this year”, adding that he will bring a retail investment strategy to Cabinet for approval.

I am in Brussels today for a meeting of European Finance Ministers. Many of you are asking about the proposed saving scheme. Here is some more info. pic.twitter.com/EF8BfxErd3

— Simon Harris TD (@SimonHarrisTD) February 16, 2026

“I’d like to then have a savings and investment forum where we can hear from stakeholders, hear from industry here, how we get this right, engage with our Central Bank, and then be in a position to bring forward proposals, I would hope in the next Finae bill,” he said. 

“I’m really excited and energised by this. I think if we can get this right, we are going to open up opportunities,” said Harris.

Savings for people who are not the ‘uber wealthy’

“I’m talking about people who are not uber wealthy by any manner or means, but people who are trying to put away a few bob at the end of the week, at the end of the month, either for their own futures to perhaps save for a deposit of a house, perhaps for their children’s futures, perhaps just for a rainy day in terms of their own household economy,” he said. 

“At the moment, quite frankly, they’re locked out of any meaningful participation in the investment scenario in Ireland.” 

Tánaiste Simon Harris speaking in Brussels today. EU Commission EU Commission

It is believed the new savings plan will not be similar to the SSIA scheme, which was introduced in 2001 and gave a government boost to savings after five years. 

In an interview yesterday on RTÉ’s This Week programme, Harris specifically mentioned similar schemes in the UK and Canada. 

For example, the Individual Savings Account (ISA) scheme in the UK allows savers to put a maximum of £20,000 away each year. The returns on those savings are not liable for tax on interest or gains.

The government has already moved to make some changes when it comes to investments, with former finance minister Paschal Donohoe reducing the tax rate on Exchange Traded Funds (ETFs) from 41% to 38%.

However, there have been calls for the 8-year “deemed disposal” rule, which allows for tax on both gains and income to be scrapped, like in the UK.

Inheritance tax

The Tánaiste was also asked about inheritance tax while in Brussels today, and whether he will lower it in the next Budget. 

Harris, who has said the threshold should be increased towards €500,000 for children, would not be drawn on the matter, stating it is not a question he is willing to answer so far out from the Budget in October. 

“But these are the key issues, the complexity around tax, the rate around tax, and indeed, the fact that there aren’t retail products available in our main banks. So this is a big piece of work,” he said. 

“I fully know there’s lots of families in Ireland under financial pressure. I fully get that, but I also know alongside that, there’s about €170 billion on deposit in Ireland today. We need to make that money work, not just for the country, not just for the economy, but for our SMEs, but also crucially, for people, for families, for young people,” he added. 

“I’m thinking of the next generation of young people in Ireland and how this could help with their own personal economic resilience and financial resilience. And that’s the prize here, if we can get this right,” said Harris. 

The Tánaiste said the government will take its time to hash out the ideas, stating that he would use the weeks and the months between now and Finance bills to get the proposals right.

“I will deliver two budgets as finance minister in this government, and it’s my intention that this would be an area of priority,” he concluded.