Ireland has been much in the news recently, and not just for its economic woes. The visit by the UK’s Queen Elizabeth II, the first by a British monarch in 100 years, and the upcoming visit of President Obama, as well as a soccer match have topped the news.
But perhaps a speech made by U.S. Chamber of Commerce President and CEO, the aptly named Thomas J. Donohue on his visit to Ireland, may prove even more valuable to the beleaguered Irish economy.
In an address to the Institute of Certified Public Accountants (CPA) and other business leaders he offered the American business community’s support for Ireland’s economic recovery, stating: “The Irish economy is proving its resiliency in the face of extremely difficult circumstances.”
“We believe in the Irish economy and the Irish people. You will rise again. The trading relationship between our countries might originally have been built on the historic ties binding Ireland and the United States, but today it is very much a relationship of strong economic ties.”
Those ties are as strong as ever. Donohue pointed out that as of 2009, the United States “had $235 billion invested in Ireland—more than our total investments in Brazil, Russia, India, and China combined. In the United States, Irish companies directly employ an estimated 82,000 Americans at more than 2,600 locations in all 50 states.”
He also throw a lifeline to Ireland’s government when he observed that “given the pressures you have been under, it would have been very easy to throw overboard the favorable tax climate that has helped transform this country into a sophisticated hub of innovation, technology, and services.” The statement refers directly to pressure from the European Union, and especially France, on Ireland to raise its corporate tax rate from the current 12.5 percent.
“But instead Ireland has rightly said no, Donohue continued, “we’re not going to squander our most important competitive strengths.” Those strengths have played a major role in convincing re/insurance companies, brokers and service providers to set up operations in Ireland. Many of their representatives will be present at the upcoming European Insurance Forum in Dublin, which takes place Monday and Tuesday next week.
“U.S. firms will remain committed to Ireland if the country remains committed to its competitive strengths,” Donohue concluded.”
He is scheduled to meet with Irish Prime Minister Enda Kenny and other senior ministers today, May 19.
Donohue’s remarks, as prepared for delivery, are available.
Source: U.S. Chamber of Commerce
Topics USA
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