Thank you for explaining the background of the case and the prosecutor. In light of this final decision, will Ireland no longer attract as much foreign direct investment as before? Will foreign (non-EU) companies move their European regional headquarters to other European cities? If so, which locations are most likely to attract such investment?
Correct. Ireland will become much less attractive when they have similar taxes to the rest of the EU. The Irish will probably claim so, but they do not have the same great city standards that other hubs have. But then, it is mostly a financial construct, Apple and others have scores of employees in EU and very few in Ireland. Luxemburg also has business-friendly conditions, as well as Belgium that surprisingly often are sneaking under the radar with respect to EU laws. Germany and France, especially, will do a lot to attract high-tech, because they are actually not that good at it. But I’d look at the Brexit case, where the EU medical agency moved to Holland, mainly because of ease of transfer and because the employees wanted it.
Thanks for the clarification. The newly modified environment sounds similar to how individual states in the US or India, for example, compete with each other to attract FDI with a variety of tangible and intangible benefits (e.g., FDI-focused business parks, geography (ports, airports, and railroad hubs), availability and education level of local workforce, cost of living, work ethic, language, international schools, availability of housing stock, etc.) and local tax incentives. I can see how Ireland may soon find itself at a disadvantage. Despite the theoretical threat from Russia, I suspect that Poland will fare better in the near future.
Thank you for explaining the background of the case and the prosecutor. In light of this final decision, will Ireland no longer attract as much foreign direct investment as before? Will foreign (non-EU) companies move their European regional headquarters to other European cities? If so, which locations are most likely to attract such investment?
Correct. Ireland will become much less attractive when they have similar taxes to the rest of the EU. The Irish will probably claim so, but they do not have the same great city standards that other hubs have. But then, it is mostly a financial construct, Apple and others have scores of employees in EU and very few in Ireland. Luxemburg also has business-friendly conditions, as well as Belgium that surprisingly often are sneaking under the radar with respect to EU laws. Germany and France, especially, will do a lot to attract high-tech, because they are actually not that good at it. But I’d look at the Brexit case, where the EU medical agency moved to Holland, mainly because of ease of transfer and because the employees wanted it.
Thanks for the clarification. The newly modified environment sounds similar to how individual states in the US or India, for example, compete with each other to attract FDI with a variety of tangible and intangible benefits (e.g., FDI-focused business parks, geography (ports, airports, and railroad hubs), availability and education level of local workforce, cost of living, work ethic, language, international schools, availability of housing stock, etc.) and local tax incentives. I can see how Ireland may soon find itself at a disadvantage. Despite the theoretical threat from Russia, I suspect that Poland will fare better in the near future.