Ireland’s appeal to multinationals will likely endure

Significance

The news coincides with the implementation of the OECD’s global corporate tax reforms, which Dublin fears could undermine the attractiveness of Ireland for multinationals. Multinational investment has been a crucial driver of employment and economic growth, particularly since 2014.

Impacts

• The government will likely hold off on investing the surplus from corporate tax revenues due to concerns about fuelling inflation.
• Ireland’s corporate tax regime is unlikely to be affected by the outcome of the next election, which will probably take place in November.
• A victory for Donald Trump in November’s US presidential election could see Washington withdraw from the OECD agreements.
• Should fewer US firms invest in Ireland, Dublin could pursue more inward-investment from Chinese companies.