It’s wholly unfair that the Irish economy is still being compared to the economy in Greece, and it would be equally unfair to compare the Irish people’s attitude to the prevailing attitude in Europe at the moment. To suggest that Ireland has become a desperate and depressed nation would-be to misunderstand the Irish people comprehensively!
If you’d previously considered relocation to Ireland but had been put off by the nation’s economic crisis, it’s definitely time to re-evaluate an Ireland you may have misjudged. Ireland has everything it needs and more to recover from its grave fiscal mistakes. But while many sit in judgment with a ‘let’s wait and see shall we’ attitude, you could take the opportunity to get well ahead in establishing your new life and business in Ireland.
In this report we’ll explain why Ireland is no Greece…or Spain or Portugal…and why not only will the Celtic Tiger roar again, it’ll come back with a more effective bite. However, there’s one caveat to this statement – and that’s ‘as long as the EU doesn’t stifle Ireland’s chances by forcing more cuts and increased taxes upon it…’
What Happened to Ireland?
Ireland’s economy collapsed because the country got greedy. Or rather, a handful of its bankers got greedy! As journalist Michael Lewis wrote in his excellent article ‘When Irish Eyes are Crying’: “Even in an era when capitalists went out of their way to destroy capitalism, the Irish bankers set some kind of record for destruction.”
Unsecured loans were dished out to developers and property speculators too, who took it upon themselves to sell the nation off - to their fellow Irishmen and to foreign investors and expats alike. The fact of the matter is however, their greed helped sell the country and its economy out.
The UK made the same mistakes…but ‘luckily’ for Great Britain it could devalue its currency and manipulate its interest rates to fool its citizens into believing that things weren’t that bad.
Ireland, as part of the eurozone, couldn’t hide behind such dirty tricks. The scale of its screw-up was published for all to scathingly mock.
Why Ireland is no Greece!
However, as the Wall Street Journal reported last month: “Even with its sovereign-debt problems, Ireland remains one of the wealthiest countries in the EU. Its 2011 GDP per capita is forecast to be $39,000, ($3,000 above the euro-zone average of $36,000), while Greece’s is forecast to be just $28,000.”
The publication going on to say:” What’s needed in Ireland is not EU-imposed austerity but a continuation of pro-growth policies. Perhaps the single most important distinction between Greece and Ireland is the market-oriented, entrepreneurial and trading culture that has long characterized Ireland.”
Anyone who knows Ireland, and who observed the spirit of the people when the Celtic Tiger economy was in full growth, will wholeheartedly endorse this opinion.
The Irish workforce is hard working, well educated, loyal to the country and supportive of immigrants who work together to better the nation. In fact, we’d go so far as to say that Ireland, even now, is one of the best places to be an expatriate.
Sure, the economic issues mean that competition for any job is fierce, but if you can bring positivity and prosperity to the country, even if only on the smallest scale by buying or renting a home and paying your taxes, you will receive a warm welcome in most areas.
Why the Celtic Tiger Will be Reborn
The Irish feel ashamed and embarrassed by the bursting of their overhyped economic bubble. Those who feel able are determined that the Celtic Tiger will rise from the fiscal ashes too (excuse me for mixing metaphors), and this is one of the strongest differences between Ireland and Greece…
Unlike Greece, Ireland doesn’t need massive structural reform. It just needs to keep a far closer eye on what its over-speculative and greedy banks are up to! It has the fundamentals it needs to rebuild…after all, apart from allowing the banks to badly invest and apart from creating a property bubble Britain would be proud of, Ireland was doing everything else right!
The determined and hard working, well-educated workforce haven’t all emigrated – therefore the nation can continue to attract technology giants like Google and Microsoft for example. I.e., it can re-grow its economy…
A Word of Warning…Ireland’s Not Home and Dry Yet
Going back to the Wall Street Journal again: “It is precisely these characteristics that the European Central Bank is threatening by demanding, for example, that the country raises its relatively low corporate tax rate. Europe’s banking and sovereign-debt crisis was not caused by Ireland’s low corporate taxes, nor will it be solved by raising them.”
We absolutely agree. Ireland has to be allowed to continue to manage its taxes, it has to be allowed to promote growth and immigration – it must not be tarred with the same brush as Greece.
Now, whilst the economy has been slashed to junk status it’s the ideal time for anyone who wants to jump in before a rebound to make their move.
Is the Time Right for You to Move to Ireland?
We need to reiterate what we said in a previous report about Ireland, i.e., despite everything, the cost of living has not gone down in Ireland so don’t think you can move in and make hay!
You will be able to pick up a property bargain as long as you have the funds to afford it (the banks haven’t got much money to lend!). But your biggest gains will be if you want to bring your business to Ireland.
The country’s corporate taxes remain low, (and long may they do so for the sake of a long-term, secure economy), and its workforce is geared up for re-employment. Commercial properties are available – with long-term rental contract terms far more favourable than they were!
If you want to move to a country that has learned from its mistakes and which is recovering far quicker than the UK or the US, in terms of achieving economic growth and stability, Ireland could be the perfect nation choice…
Des Says:
Mon, September 05, 2011 at 05:49 PM
We all hope Ireland’s domestic economy can recover and optimism replaces pessimism, but cant we also embrace a new metaphor for Ireland? Something that suggests a balanced approach to business, finance and investment. The phrase Celtic Tiger is now synonymous with poor financial management.
I appreciate that your article is trying to look forward and focus on the positives but the title of your article is worrying. Who wants to see the Celtic Tiger again? People want to see growth again, but not Celtic Tiger style growth. Time to let that phrase go.