TAOISEACH MICHEÁL MARTIN has said that there was “a lot of pessimism” about the potential medium-term impact of the war in Iran on supply and prices at last night’s dinner of European leaders in Cyprus – but he said Ireland is in a “better position than others”.

Martin met the leaders in the resort town of Ayia Napa yesterday evening, before travelling to the capital of Cyprus, Nicosia, today for an informal meeting of the European Council.

Speaking to reporters this morning, the Taoiseach said there was a “lot of pessimism last evening in terms of the potential medium-term impact of the war on supply and on prices, and the knock-on effect on economies across Europe and indeed the world.”

“So quite a lot of pessimism about the prospects if there isn’t an end to this war.”

“The Commission and others are saying, you’ve got to keep funding in reserve if the situation gets worse and deteriorates, and please god it doesn’t, but we do have to be conscious of the fact that the impacts of this could be more medium to longer term.”

Martin said that last night, EU leaders repeatedly quoted the International Energy Agency’s statement from earlier this month that the energy crisis caused by the Iran war is worse for the global economy than the impact of economic crises of 1973, ​1979 and 2022 together, but he said Ireland is in a “better position than others”.

He said Ireland has carried out scenario planning, and economists in the Department of Finance have said that, notwithstanding the worst case scenario, Ireland will “still grow”.

“We’re not immune to downgrading economic growth across the world, because we export most of what we produce,” he added.

“We are in a better position than others in terms of our financial situation, and we will factor all of that into planning for the next budget.”