Irish Consumers Rank Among Europe’s Most Pessimistic as Geopolitical and Financial Concerns Rise

Irish consumers are among the most cautious in Europe regarding their personal finances for the year ahead, according to the 2026 Banking on Banks report published today by global financial intelligence leader CRIF.

According to the research, four in ten (42%) Irish consumers expect to have less money left at the end of each month, versus a European average of 35%. In addition, 36% expect to save less, and a third (33%) think their financial situation will worsen. The findings point to a more cautious household outlook in Ireland, even against a comparatively resilient macroeconomic backdrop.

The study surveyed 5,000 consumers and 500 business decision-makers across five major European economies: Ireland, Italy, Germany, Poland, and the United Kingdom. The findings reveal Irish consumers feel under significant financial pressure, exceeding European averages on several measures of financial concern, while also showing strong expectations of financial services providers.

Caution across Europe

According to the research, nearly eight in ten (78%) European consumers have financial concerns about the next 12 months, up from 74% in 2025. Half of Europeans plan to reduce their spending over the next 12 months, while just 12% intend to increase it.

The European business community is showing similar caution around future investment and business growth. Over a third (36%) have revised their growth plans in response to the current economic climate, while three in ten (29%) have prioritised cost-efficiency measures and 27% have paused hiring. This reflects a broader European mood of caution, with both households and businesses weighing affordability, resilience and long-term planning more carefully.

Geopolitical Tensions Undermining Growth

The conflict in the Middle East has emerged as a major concern for consumers (50%) and business leaders (37%). Ongoing US-European tensions are a worry for a third (35%) of consumers and business leaders (32%). Seven in ten (70%) business leaders say the current global climate makes long-term planning difficult, and three in ten (30%) fear their business may not survive the next decade.

 
A Growing Call for European Financial Resilience

Confidence in the global competitiveness of Europe's financial sector remains fragile. Only a third (37%) of consumers and just over half (56%) of business leaders believe European financial services can successfully compete with other regions, such as the US. 

The research also points to a clear demand for greater financial resilience and autonomy.  Nearly seven in ten consumers (69%) and the vast majority of business leaders (79%) agree that it is critical for Europe to develop and maintain a strong, independent financial infrastructure, reducing reliance on the US and other foreign markets. 

Irish Consumers Leaning on Their Rainy Day Money

Reflecting the pressure on household finances, 58% of Irish consumers plan to reduce their spending over the next 12 months, while 38% say they have already proactively sought out discounts, 33% have scaled back savings contributions, and 28% have drawn down existing savings to cover everyday living costs.

According to Giovanni Catinari, Business Development Director - UK & Ireland at CRIF:

 "Our 2026 survey highlights the financial and emotional strain many households across Europe continue to face. In Ireland, despite the economy’s recognised resilience, many consumers are feeling the pinch. With inflation and geopolitical uncertainty continuing to weigh on confidence, more than two-fifths of Irish citizens are watching their disposable income decline, forcing many to cut spending or dip into their rainy-day savings to cover everyday costs.”

The fact that one in three Irish consumers expect their financial situation to worsen over the coming year highlights the growing need for financial institutions to respond with greater precision, agility and customer understanding.

By making better use of consented data, advanced analytics and technology, providers can assess affordability and long-term sustainability more accurately, and deliver more relevant, accessible and responsive financial services at a time when support matters more than ever.”