The Apple tax case marks a fork in the road – a moment of choice. It allows us to think strategically, and provides Ireland with an opportunity to think geo-strategically about our next move.
For the past 30 years, Ireland has been trying to straddle corporate America and social Europe. We have become a beachhead for US companies while remaining reasonably good European citizens, genuflecting – at least in public – to European social aspirations, despite the fact that, philosophically at least, corporate America and social Europe are at polar ends of the political spectrum.
As a result, Ireland’s economy has become more profoundly Anglo-American with everything that implies for labour laws, lower taxation, less regulation and free markets. In life, your choice is between risk and insurance. You can take risks or take out insurance against risks, and in the great existential battle between risk and insurance, the Anglo-American bias is for risk over insurance.
So that has been our economic choice. Yet, at every juncture, our civil servant class has signed us up to deeper and deeper EU integration and its subtext of a “social Europe”, with everything that implies for higher taxation, more regulation and managed markets. In the great battle between risk and insurance, the EU bias is for insurance over risk.
Despite these philosophical inconsistencies, the results of our ideological promiscuity for the average citizen of this country have been quite remarkable. Since the early 1990s, when the US multinationals started investing in great numbers and EU structural funds began to diminish as a percentage of GDP, the economy has expanded rapidly. Ireland has been growing on average three times faster than mainland Europe, Irish incomes have risen commensurately and, as a result of US investment, the capital base of the country is much more sophisticated than most other European countries.
The best indicator of this performance is immigration. People head to where opportunity lies. Hundreds of thousands of young people from the EU live and work here because our hybrid, Anglo-American economy has performed so much better than the rest.
These are the macro facts, despite our colossal bust. Geo-strategically, we have avoided making a choice between the EU which, broadly speaking, favours a more socialist worldview; and the US corporate world, which favours a more capitalist outlook.
Balancing both of these in a globalised world is tricky and, sometimes, the inconsistencies come to a head.
Ireland is like a jockey riding two horses. As long as the horses are running in the same direction the jockey’s position is just about manageable but when they run in opposite directions, the jockey’s position becomes uncomfortable and, ultimately, untenable.
This case is the beginning of a war between the EU and the US, not over tax, but over power, which will force Ireland to make a choice. Years ago, as a student in the College of Europe (a sort of finishing school for Eurocrats), and subsequently as a central banker going to EU meetings, I was struck by the deep anti-US sentiment within the corridors of power in Brussels. The goal of the EU in most political quarters appeared to be a European antidote to US global power. This is understandable for crestfallen countries like France – but for Ireland?
Ireland is not, and never has been, a European country in the continental sense of the word. We know this; and so do they. We are an Atlantic race. Our cultural, linguistic, familial, commercial and historical links are with the Atlantic world, with America, Britain and Canada. At a wider level, these deep links are with the English speaking, common-law nations. The notion that we have something deeply in common with the French or Germans (not to mention Romanians or Bulgarians) which comes close to the extent of our link with the Americans is fanciful at best, deluded at worst.
In the past 30 years, our ancestral links to the US have become more concrete by the massive bet that corporate America has taken on Ireland, making the Irish economy look more like Connecticut with poor weather than Tuscany in the North Atlantic. The fact that 30 per cent of our imports still come from Britain underscores the failure of the European project in diverting even our basic trade patterns. The US is our largest trading partner; let’s not forget that, the next time we are lectured by a Danish politician on corporation tax when she doesn’t even pay income tax on her own euro salary.
Our future is not a European Ireland with Atlantic links, but an Atlantic Ireland with European links. This is the way to prosperity. Indeed, the rather Cold War-esque notion of the US and Europe competing for global dominance looks even more outdated when we appreciate that China will soon be the biggest economy in the world and that the EU’s population is only a quarter of India’s. The EU seems increasingly like a legacy project, something like the Commonwealth – an institution or set of institutions whose relevance is becoming more and more tangential. It feels very much a creature of the 20th century.
Since the Eurozone crisis, Brexit and the evident lack of any common position on Ukraine, Syria or indeed the biggest issue, refugees, the EU’s lack of focus has become apparent. These internal inconsistencies imply that the impetus for further integration has clearly stalled, begging the question: what exactly is the EU for in the 21st century?
It may rediscover its mojo, but we can’t wait for that. The world keeps spinning, and is not waiting for the next big bureaucratic wheeze from Brussels.
Looking forward – in a globalised world where Ireland is in competition not only with Belgium and Hungary but with Singapore, India, Israel and Hong Kong for mobile capital, professional employment, hi-tech investment and opportunity – we need to remain attractive to business. This does not just apply to footloose business but to our own entrepreneurial class – both ethnically Irish and, increasingly, ambitious immigrants whose knowledge of foreign markets is a massive silent plus for Atlantic Ireland.
Ireland has to see itself as a hub for global business, and we must regard ourselves as a host for the best and most creative European labour and talent as well as the most cutting-edge US technology. This is the elixir of prosperity in the 21st century. We should aim to be a wired version of a Hanseatic city-state, open, trading, making alliances with everyone, beholden to none. That is what Atlantic Ireland looks like.
Obviously, Apple should pay whatever tax it owes. That tax should go to Ireland. Otherwise, the EU Commission is regarding our Revenue Commissioners as a tax collector arm of other European governments. This is totally bizarre, and raises the question: will those other countries pay the wages of Irish tax officials who are now supposed to be working for them against Apple?
However, the bigger choice is between the Atlantic and the continent. Ireland has always been Atlantic, never continental. With the British now out of the EU, we can play a quasi-continental card, but never forget it is US capital that makes our economy dynamic.
If the bureaucratic EU is on a collision course with corporate America, we should be very clear – from an economic perspective – which side we are on. Atlantic Ireland is our future.
‘As a result, Ireland’s economy has become more profoundly Anglo-American with everything that implies for labour laws, lower taxation, less regulation and free markets. In life, your choice is between risk and insurance. You can take risks or take out insurance against risks, and in the great existential battle between risk and insurance, the Anglo-American bias is for risk over insurance. So that has been our economic choice.’ David McWilliams. I disagree. In fact, the Irish economic model, as proven by the Bailout of Banks has always been ‘fake Capitalism back-stopped by Social Taxpayers in extremis’ Ireland is not alone… Read more »
It is time Ireland sat down and take stock of where it is re Europe. Some have done well i.e. big ranchers/farmers while small farmers have been pretty much wiped out.
Everyone has their examples of areas that have done well and badly. So time for an honest appraisal.
Maybe under the heading of IRLexit or not? If it does nothing else it will at least inform the general populace of what in the name of what you believe in is going on.
It might even encourage some real transparency ha.
More a slave serving two masters then a jockey riding two horses. Are we saying that it is in our interests to be a conduit for US corporate tax avoidance schemes? And if so, how long do you think we’ll get away with that ruse?
It’s one thing creating a business friendly environment, quite another becoming the tax avoiders Trojan horse wheeled into the EU.
David, I think there’s a big hole in your argument. On the one hand you rightly say that it’s US capital that makes our economy so dynamic. On the other hand it’s the European market that is reason the US is here in the first place. They are not here for the Irish market and they are not here to do business with India or China – they can do that much cheaper over there. We have to be careful not to become like the manufactured boy band who begin to believe they can suddenly be creative, lose the manager… Read more »
David I’m not convinced by your arguments. The rampant capitalism espoused by Anglo-American economies is on the decline and large corporations will be made to pay their fair share of tax – particularly within the EU under CCCTB. While the EU project has its issues (like you I also worked in the Brussels bureaucracy) it has nonetheless delivered way more to the citizens of the EU than the US government has delivered to its citizens. We should remember that the objectives of any ‘regime’ should be to improve the welfare of its citizens not the welfare of its businesses. Companies… Read more »
Strategically Ireland needs to adopt a me fein approach. Be a winner picker in essence. We’ve had a good ride on both horses. We know their pedigree. We know their form. We know their handicap. And most importantly we know their price. Having got shut of GB the EU will either screws us or get rid of us, there will be no middle ground. We’re their little bunny now and they’ve got used to it – we’ve spoiled them. The US likes us, the EU think of us as anglo saxons. That last is an absolute indeniable fact. I have… Read more »
That the Leglislative & Executive & Judiciary [ L.E.J. ] & the senior Civil Serpents of Irish State government frequently pick the strategically detrimental choice for the Irish nation over the decades of E.E.C / E.C. / E.U. membership means that we should seriously consider are those “decision makers” compromised in the fashion of top British MP Mr. Keith Vaz ; Truly, Vaz is not the shortened nick-name ; And, yes, u betcha though that blackmailing spooks have “a lien” on him all along. Keith Vaz (Nigel Keith Anthony Standish Vaz) is Chairman of the UK parliament’s powerful Home Affairs… Read more »
So what is to do. Get back to spending 19 shillings and six pence and we will be free, really free. There is a price for freedom but there is a reward also and the reward is well worth the price. For it to happen we need a polician who will lead and a cause worth fighting for. Corporation tax is a cause worth fighting for because to lose that battle is the equivalent of a nuclear strike on our whole economic strategy. That is not to say it’s a good strategy but it takes time to change horses and… Read more »
The reason BTW that they are going afterthe ccorporates is because they are running out of other sources of income.
I deduce this simply from the fact that the corporates are a very powerful entity and not low lying fruit so to speak.
http://mohawknationnews.com/blog/wp-content/uploads/2016/09/us-44319-1.jpg
An apple a day keeps the doctor away, so we were told in our childhood. It seems we only need one every year or so now!!
https://mail.google.com/mail/u/0/?tab=wm#inbox/156f939903bf3d75
Some good news for a change. It will now be possible to travel from central Kildare to central Dublin in less than 60 minutes. The distance is less than 30 miles. So this is not exactly a Japan Rail level of innovation. But for Ireland, this is a big change. http://www.independent.ie/irish-news/phoenix-parks-139yearold-tunnel-to-reopen-for-rail-commuters-35025314.html Please note – the tunnel did not have to be built from scratch. It was built with private money. And at a time when Dublin was 1/10 what it is now. And when engineering was with a pencil, and construction was with a shovel. There were no TDs to… Read more »
We are seeing a power struggle. The Centralists versus those who are fed up with the centralists. The entire “more EU rope” mantra is really about the accumulation of power (and wealth) at the centre. The more power in EU power bodies, the more lobbyists, and the more money starts to lubricate matters. Apple are an innovator. The EU is a restrictor. That is the business of both. The EU creates monopolies by eliminating the competition with dictats. Apple creates monopolies by beating the competition with better phones. I have a choice with regard to Apple. The EU will give… Read more »
The Irish establishment has been beholden to Brussels and Berlin, evern since the Irish establishment signed Ireland into the Eurozone. No worse donkey than Ruairi Quinn sent the Irish delegation over to agree the country into something which had never been tested before, and to do so, without asking any questions. It was a moment of supreme stupidity. Brought to you by a champagne socialist representing the constituency, in which scandal ridden AIB have their HQ. And by the brother of the then supremo of AIB. AIB is now effectively the reason why house prices are high – because AIB… Read more »
This is what is happening to the USA ; http://clashdaily.com/2014/11/alinskys-hit-man-obamas-plan-destroy-america/ And, u, David, want us to hitch ourselves to that ? Ah well, we are already mimicking the Alinsky methods to destroy society ; The Trots — Auntie Austerity Dalliance [ socalled “People before Profit”, etc ], Socialist Party, “MI5 & MI6” compromised Sinn Fein, inter alia — & the Bolshevicks — unofficial “Blue Shirts” Fianna Fail & official “Blue Shirts” Fine Gael & Michael McDowell — are all doing so. Ultimately, they want the bulk of the population to be jobless AND paltry welfare dependent & have just a… Read more »
Guess such a move would allow Kill-ary to save face — for whatever — when the King-makers decide that Trump is to be Prezzie.
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https://fellowshipoftheminds.com/2016/09/05/hillary-to-come-out-as-lesbian-in-october-surprise/
“Atlantic Ireland is our future”
Even better future- Ireland as 51st. state.
Huge advantages for both nations. US major permanent business, tourist and defence toehold in Europe. Ireland adds its 200 billion dollar debt onto USA near 20 trillion debt. A drop in the bucket, NI gladly reunites with South as NI reputedly fought harder for Amerian Independence than anyone else.
You could write a book enumerating the advantages, few disadvantages. If Trump is in he will be for it.
Tongue not quite in cheek.
Referendum anyone?
http://www.goldcore.com/us/gold-blog/ireland-especially-exposed-international-shocks-warns-central-bank/ “There have also been warnings regarding deposit bail-in risks from the CEO of FDB, one of Ireland’s largest insurance companies. The insurance company has been moving cash out of Irish bank deposits and into bonds. In order to read more about Stefan Gerlach’s warning and Fiona Muldoon’s concerns – read Deposit Bail-in and Property Crash Warnings In Ireland here. These risks are set to impact savers and investors in the coming years. Ignoring them and pretending they have no financial implications for people’s personal finances is imprudent. Today Dr Constantin Gurdgiev, Dr Brian Lucey, Eddie Hobbs, Jim Power, Cormac… Read more »
“”. . There is no competition in the United States. There is no free election. There is no free market. There is not capitalism. All of these things that you believe to be in place right now are lies. . . . It’s procedural racketeering. It is the veneer of a functioning economy or a functional system. This sort of procedural racketeering is also procedural control and procedural information gathering. It is dystopia of epic proportions.””
http://usawatchdog.com/pre-collapse-more-dangerous-than-actual-collapse-warren-pollock/
http://etfdailynews.com/2016/09/03/gold-miners-looking-up-after-gold-holds-an-important-price-level/
“”In order to have a sustainable economy, you have got to have people creating and producing things of value. A debt-based paper economy may seem to work for a while, but eventually the whole thing inevitably comes crashing down when faith in the paper is lost.””
Grzegorz, I perceive the following from the vantage point of being a naturally political person [ not a “political-animal” mind u ], & some knowledge of history, & meaningful discussions wit German & Polish interlocutors over many years ; . The Germans like to look down on the Poles ; And, for their justification, they call the Poles lazy. They do not specify initially as to the type of laziness ; There being many types of laziness of course. But, then on I questioning so, they elaborate with “production laziness”. . I now would argue that the Germans are generally… Read more »
Infamous landlord to the Irish in England Mr. Rachman was a very important chappie in spookdom ; Polish connections abound. Actually, we are talking about “State-Craft” & what have u. incl. JFK escapades JFK assassination Profumo affair Irish Orphanages . . U say the following in this link . http://aanirfan.blogspot.com/2014/12/mandy-ward-rachman-sexpionage.html ; . “Rachman got caught doing business for Begin and Israel, swapping drugs for arms, and was in jail in Ireland for 5 years before he could join Mandy in Israel.” . Wonder what Rachman was imprisoned in Bandit-country [ No ! ; Not that type of “banditry” ; Just… Read more »
And, because the subject of “Housing” is such a common refrain of this site, I supply u with mention of what landlords can do with impunity from follow-through from Garda-Landlords or [ in this specific case ] British Police ; . Lord Moynihan Obituary, Telegraph: . “In 1960s London Moynihan cut a rather ridiculous figure in kaftans, and worked for a time for Peter Rachman, the slum landlord, driving his maroon Rolls-Royce. . ‘I didn’t really understand what was involved in those days,’ recalled Moynihan. ‘It was quite cruel. They had this big Alsatian dog that had been taught to… Read more »
Gene Kerrigan: ‘We’re with you, Comrade Billionaires’ ‘The fight to save Apple’s billions is cynically cast as a fight for national sovereignty,” writes Gene Kerrigan ‘Taoiseach Enda Kenny stands shoulder-to-shoulder with Michael Noonan, the Minister for Apple. Together, we’re assured, they will protect us from the Bullying Bastards of Brussels. These two stalwart Irishmen, the Pearse and Connolly of our time, are fighting to fend off the Feckers from Frankfurt. We’re told we’re under attack and we must all pull on the Green Jersey. And if the Green Jersey has a big Apple logo on the front, well, all the… Read more »
That was interesting stuff about Obama. He certainly fooled me. I liked the look of him whereas I could never warm to Clinton. However recently I have become disenchanted with Obama. His attitude to GB on a new trade agreement is a load of baloney. Sure a trade agreement with the EU is important but there is nothing in the rule book stating that you have to do one at a time and that GB will have to wait its turn. Whatever happened to parallel negotiations. That’s his public message and he’s been at pains to repeat it. Make you… Read more »
McCawber,
I contend that the SAFE Card is a wrong too far on the relationship between the aborigine Irish & the Irish State.
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We were always told that Irish State was benign in that it did not compel its citizens to have Photo ID.
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“Halt ! Ve vant to zee ur Photo I.D., u pathetic Non-Civil Serpent of the Irish State.” ;
So, will the Irish State Civil Serpents be wont to soliloquy at least.
Typo ;
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I contend that the SAFE Card is a wrong too far IN the relationship between the aborigine Irish CITIZEN & the Irish State.
My comment on Dublin Bus strike:
https://www.youtube.com/watch?v=kWWRjnKsiUE
I thought that perhaps someone will find useful the information that Hailo is giving a 50% discount for the duration of the strike:
http://www.dublinlive.ie/news/dublin-news/hailo-come-rescue-ahead-dublin-11851649
http://spectator.org/shes-leaving-on-a-jet-plane/?utm_source=American+Spectator+Emails&utm_campaign=a89ea1a3da-09_07_20169_7_2016&utm_medium=email&utm_term=0_797a38d487-a89ea1a3da-104365713
Introducing “Conaire”
Note ; Comments refer to “Comments” given to Aanifran.blogsopt.com feature ; http://aanirfan.blogspot.com/2016/08/keith-vaz-male-prostitutes-and-child.html#comment-form 7 Sep. 2016 Guido Fawkes [really Paul de laire Staines ] — who owns the interesting political blog order-order.com, & which was the 1st to publish the list of the main Bondholders holding the Irish Nation to ransom & this list the Irish State was refusing to reveal to the public — supplies very crucial info. at the end of my post herein. . . “The country we love to hate ; But, never cease to imitate.” . Charles Stuart Parnell commenting about the Irish nation’s relationship with… Read more »
As the self-appointed Global 5th Province Taoiseach & President, I intend the trigger a Cultural Revolution so that the Irish #Rise like the English have done like ‘lions after slumber’. James Connnolly & Michael Collins have already endorsed/annointed me with the rest soon to appear on the Ouja board. Pearse is a hold-out as he needs intensive counselling about his childhood bullying and subsequent Blood Sacrifice PTSD but he’ll be onboard before the show hits the stage. Who seriously thinks there’s a Cultural/Political force that can withstand my C21st Global Irish Narrative? If there’s anyone out there who thinks they… Read more »