Friday, April 01, 2011

"Luck of the Irish" = Bad Luck

Ireland needs more bailout funding. Why? Because their growth over the last 15 years was built on a "lowest taxes" model and non-sustainable.

Ireland sought to attract business investment & clever individuals by undercutting competitors. Ireland's corporate tax rate is 12.5% (compared with 28% in the UK, 35%+ in the USA, 26% in Sweden). They reportedly (link) were also highly forgiving with corporate "administrative expense" allowances. The Irish boom drained resources from elsewhere, and they hoped to generate enough new value-added synergies to operate at low cost.   They failed.

Now they're saddled with thousands of deteriorating development projects. Indebtedness forces Dublin to beg competitors for assistance. Pity the Irish...?

No comments:

Post a Comment