Ireland could face a significant economic crisis if major US corporations such as Apple, Microsoft, or Pfizer were to exit the country.
This scenario would become more likely with the re-election of Donald Trump, according to the Taoiseach’s new economics adviser, Stephen Kinsella.
Stephen Kinsella, a professor at the University of Limerick and now an adviser to Simon Harris, has warned that the Irish economy is at a critical juncture and is closely tied to the fluctuating US economy, according to Businessplus. Ie.
Heemphasizedd that the potential exit of these tech giants could lead to an economic shock so severe it would make previous austerity measures seem trivial by comparison.
Speaking on the Entrepreneur Experiment podcast, Kinsella noted that while a housing bubble primarily drove past economic crises in Ireland, the next downturn is likely to be triggered by international factors, with the re-election of Donald Trump being a significant concern. Trump has expressed intentions to curb US multinational investments in Ireland by reducing the American corporate tax rate, which could have devastating consequences for the Irish economy.
Kinsella highlighted the crucial role that these US companies play in Ireland’s economy, pointing out that Apple, the largest taxpayer in Ireland, employs 6,000 people in Cork.
Losing Apple or similar large firms could “wipe out” the Irish economy, as these companies contribute to around 60% of all corporation taxes in the country.
He further warned that such an outcome is not merely hypothetical, referencing the closure of Dell’s manufacturing plant in Limerick in 2009, which resulted in the loss of 4,000 jobs.
Kinsella noted that this pattern of corporate relocation is not unique to Ireland, as it is currently happening in China, where companies are moving their production to countries like India, Vietnam, and Cambodia.
Kinsella explained that if the Irish government were a business, it would rely on multinationals for 27% of its sales. Therefore, the broader Irish economy would suffer if the technology and pharmaceutical sectors struggled.
Despite the current economic boom, with a low unemployment rate of 4.2% and record numbers of people in work, Kinsella cautioned that this could be a warning sign of impending difficulties.
Heemphasizedd that stability in the Irish government is crucial for maintaining the confidence of global corporations operating in Ireland.
Kinsella also expressed concern about the rise of far-right political rhetoric in Ireland, warning that it couldjeopardizee the country’s reputation as a stable and business-friendly environment.
He stressed that Ireland’s long-standing democratic stability and centrist politics have been vital in attracting and retaining multinational corporations.
