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Sunday papers ‘Slow, costly and high tax’ US officials rate Irish economy. Stark warning to investors will sound alarm bells for FDI intensifies by Laura Roddy. Can you give synopsis of this article?

Thought for 53s

The article by Laura Roddy, published in the Business Post on September 6, 2025, discusses a US Department of State report that critically assesses Ireland’s economy as “slow, costly, and high-tax,” potentially deterring American investors and impacting foreign direct investment (FDI).

The report, part of the 2024 investment climate statement headed by Donald Trump ally Marco Rubio, incorporates feedback from US companies and warns of challenges like high labor and operating costs, a burdensome planning system, high income tax rates, chronic infrastructure issues, a persistent housing crisis, shortage of high-quality office space, elevated price levels (among Europe’s highest), lengthy procedural decisions, and a “slow and tedious” planning system.

It highlights Ireland’s recent increase from its once “favourable” 12.5% corporate tax rate, new requirements for data centers (critical to many US firms), a moratorium on such facilities in Dublin, high energy costs, and heavy reliance on imported fossil fuels.

Despite these criticisms, the report acknowledges positive aspects, such as Ireland’s active promotion of FDI, its high-quality English-speaking workforce, and its role as a key R&D hub and magnet for US internet and digital media investments over the past 40 years, with examples including Google, Amazon, Meta, LinkedIn, Electronic Arts, and cybersecurity firms like Tenable and Forcepoint.

The piece notes that this stark warning could alarm Ireland’s business community amid ongoing competitiveness concerns. It references recent pledges by Taoiseach Micheál Martin at an Ibec event to address business costs and planning delays, alongside comments from AIB CEO Colin Hunt on Ireland’s infrastructure deficit hindering talent attraction, traffic issues, and energy grid strain.

Overall, the article frames the report as a potential blow to Ireland’s appeal for US multinationals, building on prior guidance while emphasizing the need for reforms to sustain FDI.