Ireland is approaching its general election, with the center-right parties Fianna Fáil and Fine Gael expected to form the next government. These parties have shared power with the Green Party in recent years and are currently favored in opinion polls.
Ireland's budget surplus has been boosted by its status as a hub for major U.S. tech and pharmaceutical companies. A recent ruling from the European Court of Justice has mandated that Apple pay back taxes, further improving Ireland's financial position. However, there are concerns about the potential impact of President-elect Donald Trump's policies, which may seek to limit the tax advantages American companies currently enjoy in Ireland. This uncertainty could affect the economic landscape and foreign investment decisions.
Ireland is also facing a severe housing crisis, with a decade-long under-supply in the housing market. Rents and house prices have skyrocketed, making housing unaffordable for many citizens. The Central Bank of Ireland projects that 52,000 new homes will be needed annually to meet demand. The homelessness crisis has also worsened, with thousands of individuals, including children, living in emergency accommodations.
Despite these challenges, Ireland remains an attractive destination for workers due to its access to the European single market and a young, educated workforce.
Ireland's financial health has improved since seeking a bailout over a decade ago. The country has recorded a budget surplus for the past two years, and S&P Global Ratings recently upgraded Ireland's outlook to positive. However, there are concerns about the sustainability of Ireland's financial model, which relies heavily on foreign-owned multinational enterprises for corporate tax revenue.
The return of Donald Trump to the White House raises concerns about the future of U.S.-Ireland economic relations. Trump's "America First" policy could threaten Ireland's appeal as a tax haven for American companies. Trump's business ties to Ireland add another layer of complexity to the relationship.
In summary, Ireland's upcoming election will shape the country's trajectory in the face of economic opportunities and external pressures. The next government will need to address the housing crisis while maintaining Ireland's attractiveness for foreign investment. The implications of U.S. policy changes under President-elect Trump will also be closely monitored.