Taoiseach: Public sector pay deal will impact spending in other areas of Budget

Micheál Martin said: "Government cannot do everything, and Government will not be able to cover the increased costs in their entirety."

Taoiseach Micheal Martin said he had spoken to EU Commission President Ursula von der Leyen around the exponential rise in the price of gas and oil on Tuesday morning, adding that these hikes are "quite alarming".

The new pay deal hammered out for public sector workers will have an impact on the amount that can be spent on other areas in the Budget, the Taoiseach has warned.

Describing the 6.5% increase as a "fair agreement", Micheál Martin said "harmony" is now needed given the disruption the war on Ukraine is having on the economy.