Ireland Should Be the Happiest Country in Europe. Shouldn't It?

Ireland: An Embarrassment of Riches #

Ireland, once among the poorest nations in Western Europe, now boasts significant public and private wealth, propelled by a globalized and open economy. Facing current and future challenges, the country is a case study in economic transformation. As Ireland prepares for a general election, underlying societal issues suggest that prosperity has not brought pervasive contentment.

The current Irish government, a coalition of Fine Gael, Fianna Fáil, and the Green Party, has achieved notable economic milestones. Ten years ago, two million were employed; today, the figure approaches three million. Unemployment is at historic lows, and government debt has halved in proportion to the size of the economy since 2014. Yet, voter sentiment isn’t necessarily swayed by these statistics. Many residents feel disconnected from such macroeconomic success due to personal economic struggles.

The influx of U.S. multinationals like Apple, Microsoft, and Pfizer, attracted by low corporate taxes, a well-educated workforce, and stable political conditions, has significantly impacted Ireland. They spend over $40 billion annually and heavily contribute to the Irish treasury, potentially yielding 30 billion euros in corporate taxes this year. Consequently, the government can simultaneously reduce income taxes, increase public spending, and decrease debt – an uncommon luxury in modern democracy.

Despite these economic achievements, Ireland grapples with complex challenges. Infrastructure and public services have failed to match the pace of economic growth. Young people struggle to afford homes as high rents plague major cities. Public services, such as healthcare and education, are stretched, and the transition to a carbon-free economy remains slow. Additionally, immigration management, particularly involving refugees from Ukraine and asylum seekers from Asia and Africa, has been chaotic. This has led to claims that “Ireland is full,” despite the country being one of the least densely populated in Western Europe.

As polls suggest a slight preference for the center-right coalition, hard-line nationalist groups gain footholds in mainstream politics. Sinn Féin, having led in the 2020 election, faces challenges from far-right competition and internal scandals. They had aimed to lead the government with promises of equitable tax use, housing solutions, and a united Ireland.

Warnings loom regarding potential international trade tensions, notably between the United States and Europe. For now, Irish politicians avert their gaze from future geopolitical uncertainties while the nation continues to navigate its prosperous but precarious path in an interconnected world.