“Ireland must wean itself from dependence on FDI..”

Despite mixed messages during the election campaign, there’s still a reported expectation that President Obama will attempt to renegotiate trade agreements to focus on US jobs and economic strength. Meanwhile, as Simon notes the Republic of Ireland’s one remaining economic pillar (Foreign Direct Investment), Foreign Affairs Minister Micheál Martin told the Dáil: “regarding the suggestion that the new [US] administration may seek to disincentivise companies moving overseas in terms of deferral tax, subsidiaries and other means, we must take this step by step. We must also be aware that such a policy change would require legislative input and we would obviously engage in making our position known to Congress and to public representatives there.” And Garibaldy picks up on the comments by Robert Shapiro, a senior economic advisor to Barack Obama.

“FDI was a transitional strategy, not an end-game strategy, that created a lasting impact. The key to Ireland’s next stage was to make the entire economy a modern economy and not one that depended on the success of foreign companies. The ability to develop ideas is the single most critical factor and source of wealth and growth for advanced economies today, replacing physical assets and this is what Ireland needed to focus on.”