Finance Minister says Donald Trump's election could have an effect on Ireland's next budget

Minister Noonan stressed it is too early to know exactly what effect the US election might have

Michael Noonan, pneumonia, health, cancer, surgery, procedure, finance minister

Finance Minister Michael Noonan | Image: RollingNews.ie

Michael Noonan has suggested there could be less 'fiscal space' available in the next Budget, partly because of Donald Trump.

Michael Noonan says the current global situation means a "downward risk" on the fiscal space available, meaning there would be less money to spend.

But the minister says it is too early to know exactly what effect the election might have, because fiscal space has moving parts and it is not possible to revise it every week.

He says the situation will be clearer in a few months when the Budget figures are recalculated.

Speaking the Dáil, he told deputies: "It's not possible to recalculate on a weekly basis on the back of the most recent international event.

"At present it looks as if the fiscal space available... the risks are on the downside towards a reduction of fiscal space. But things can change very rapidly, and we'll see when we're recalculating in the springtime where we're at."

Speaking to Newstalk yesterday, a number of Irish politicians raised concerns over the impact that a reduction in US corporation tax will have on the Irish economy.

One of Trump's top advisers has also warned that firms from the United States will soon be upping sticks and moving back to the US as the Republican slashes taxes.