Ireland’s Election Results Signal Continuity for Business Community
The recent election in Ireland has yielded a predictable outcome, with the incumbent center-right parties, Fianna Fáil and Fine Gael, poised to form a coalition government. This result ensures continuity for the business community, but also masks underlying dissatisfaction with various social issues.
A Familiar Coalition
Fianna Fáil, led by Micheál Martin, and Fine Gael, led by Simon Harris, are expected to form a government with the support of one or two smaller opposition parties. A key question remains who will take on the role of taoiseach, given that Harris currently holds the position but Fianna Fáil will become the larger party.
Social Issues Take a Backseat
Despite the election results, many social issues, such as the country’s dire housing crisis and ageing infrastructure, remain unaddressed. The housing crisis, in particular, has seen an increase in homelessness, especially in Dublin. While Fianna Fáil and Fine Gael have made commitments to increase housing supply, it remains unclear which manifesto elements will be enacted.
Economic Strengths and Challenges
Ireland’s economy has been boosted by a 13-billion-euro windfall from tech giant Apple, adding to its budget surplus. The country’s low corporate tax rate has attracted multinationals like Google, Salesforce, Meta, and Pfizer, setting up European bases in Ireland. However, economists have raised concerns about the potential economic threat from Donald Trump’s re-election in the U.S., citing Ireland’s vulnerability to a loss of U.S. trade.
A Pro-Business Environment
Despite these challenges, the election result confirms that there is no significant political movement in Ireland demanding a protectionist shift away from its open economy. This sends a signal that Ireland remains a good place to do business, open to global companies, and pro-business as it has been for decades. While the Trump presidency may impact companies’ decisions on where to set up, particularly in the pharmaceutical industry, there is unlikely to be an exodus of companies from Ireland.
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