Ireland’s Minister for Finance, Paschal Donohoe, has stated that the country’s economy is in a position for a “strong rebound.” Donohoe made this statement during a webinar hosted by the German-Irish Chamber of Industry and Commerce. Not only does he have a positive outlook on the recovery of financial markets in Ireland, but also for Europe more broadly.
During his talk, he mentioned that after this summer, Ireland will be implementing a national recovery plan to make the process of recovery quicker. Donohoe notes that one of the biggest difficulties will be adopting solutions that are genuinely enduring and more inclusive.
Additionally, Donohoe specifically touched on the importance of financial services to Ireland’s economy. He found that this sector has been crucial in the economy’s recovery following a period of financial crisis from a perspective of jobs and investment. Further, fintech and digital financial services will continue to be key actors in the industry as time goes on.
With expected changes to international corporate tax rates, Donohoe vouches that small economies, like Ireland, can be successful. Currently, bigger economies are attesting for a minimum effective tax base. Donohoe affirmed that himself and other finance ministers of smaller economies will do the same in seeking a minimum effective tax base.
He expects to receive a report of broad principles regarding this topic some time in the next few weeks. This report from the OECD could further prompt a more expansive technical agreement within the latter half of the year. Donohoe stated that he will collaborate with the government and investors to find an equilibrium between Ireland’s inclusion in a definitive agreement, while also advocating for the specific roles that small- and medium- sized economies will play.
In sum, Donohoe assures that the government will evaluate everything the future may hold and will maintain strategies that allow Ireland’s economy and nation to be competitive globally. In regards to Brexit, he surmised that reactions in the economy to Britain’s exit from the European Union will play an important role in Ireland’s recovery. To navigate this tricky situation, Ireland must seize the chance at an equalized relationship with the UK and the EU alike.
To do so, the three units must acknowledge that they continue to have a lot in common. Further, they must also establish an equilibrium between protection of a single market and form an effective trading partnership with the UK. Though these many factors pose a real challenge to Ireland’s economy, Donohoe remains confident that the country will face the adversity directly and find success.
O’Brian, Ciara. “Irish Economy Set for ‘Strong Rebound’ Says Donohoe.” The Irish Times, 23 June 2021, https://www.irishtimes.com/business/economy/irish-economy-set-for-strong-rebound-says-donohoe-1.4601587.