Subsidy war would pose serious threat to Ireland’s FDI success

The move by policymakers in Europe and the US to use subsidies to attract new investment needs a careful diplomatic response

In Europe, policymakers have announced a €43 billion Chips Act

In October 2021, the Irish government finally signed up to the OECD’s landmark deal to overhaul the global corporate tax system after a carefully played out diplomatic process that lasted years. It’s no surprise the state took a cautious approach to the reforms.

After all, the OECD’s drive to change global corporate tax rules presented the greatest threat to Irish industrial policy in decades which, allied with concerns over creaking housing and energy infrastructure, created ...