The proposal is contained in a pre-Budget submission by Elkstone, the Dublin-based investment house founded by Alan Merriman.
In a letter to Finance Minister Paschal Donohoe, he argues that a dedicated national mechanism to channel household and institutional savings would strengthen Irish enterprise, boost job creation and help ensure balanced regional development.
A dedicated scheme could also “ensure long-term domestic capital supports for housing delivery and enterprise development”, he said.
Elkstone is joining a chorus of calls for the Government to redirect money sitting unproductively in bank accounts into capital for local enterprise.
Insurance Ireland, in its pre-Budget submission, called for the introduction of an equivalent to the UK’s individual savings accounts, which would be similar to a tax exemption on investment income and capital gains, with the Government setting an upper limit on value.
Finance Minister Paschal Donohoe. Photo: Collins
Brokers Ireland has also proposed voluntary individual savings accounts (ISAs) to encourage more retail investment in capital markets.
“Irish retail investors consistently retain very high levels of low- or nil-yielding bank deposits and hence low levels of direct investment in higher yielding capital markets,” its pre-Budget submission said.
While property accounts for most of Irish households’ financial assets, a significant portion of wealth is in low-interest savings products, which miss out on the potentially better returns obtainable by investing in capital markets.
A recent report by the Central Bank of Ireland found that Irish households’ preference for short-term and accessible deposits cost almost €800m in unearned interest last year alone.
Elkstone is also calling for pension funds’ access to private markets to be expanded. Allowing them to participate more fully in private equity, venture capital and infrastructure would both generate long term-value for pensioners and provide capital for high-growth Irish firms, it said.
“Pension rules here have not reflected the global shift towards private markets,” Elkstone argued.
“Recent policy changes in the US and UK have allowed pension funds to tap into private market investments, recognising the benefits of higher returns, diversification and stronger domestic enterprise.
“A Pensions Bill in Ireland is required as the Government plays a critical role in motivating active allocation to the domestic economy across Irish scale-up companies, infrastructure and real estate.”
Pointing out the importance of venture capital to the Irish start-up ecosystem, it said €1.48bn came from that source last year alone.
“An Irish venture champion is needed as a beacon for international VCs to co-invest alongside. By investing in our own innovation base, Ireland can future-proof against external shocks and ensure that today’s corporate tax windfalls lay the foundation for tomorrow’s enterprise champions,” it said.
In his letter to Mr Donohoe, Mr Merriman makes the case that, given the global economy uncertainty caused by tariffs, it is time that Ireland invested in its own entrepreneurs, thereby making the country more self-reliant.
“To mitigate the exposure, we believe Budget 2026 should prioritise measures that channel capital into our homegrown sector and reduce systemic dependence on multinationals. It’s time for a new narrative.”
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