What economists call pro-cyclical fiscal policy is now well and truly entrenched, with government fuelling growth when it is not needed and deepening austerity when crises hit.
Even under Trump, US multinationals show little sign of retreating from global markets — thanks to incentives, political clout, and economic reality.
Today, an EU-UK summit will seek to ‘reset’ Britain’s relationship with the bloc that has been in flux since the Brexit referendum almost a decade ago. Pervasive gloom hangs over our neighbouring island. It has its problems, but the pessimism is overdone.
Housing completions have been flatlining for three years. At the same time, Ireland has experienced one of the biggest population increases in the world. The Government's approach to housing is not working.
The Trump administration not only wants to radically reduce economic ties with China, it is pressuring others, including the EU, to follow suit. This should happen on Europe's terms.
The next move is the EU's after new US tariffs were announced overnight. The balance between proportionate and escalatory retaliation is a fine one when dealing with any adversary. It is finer still when dealing with Donald Trump.
As the US looks set to bring in swinging tariffs on the EU, the current strength of the European economy gives reason to hope that it can withstand the transatlantic trade conflagration to come.
Ireland will become utterly isolated should it choose to opt out of European defence integration as the Donald Trump-led America continues to align closer with Russia over its traditional Western allies.
Ireland’s external environment is undergoing change not seen since the 1940s. Now is the time for a laser-like focus on what matters to Ireland and its interests – Europe and the US.
The last Cold War ended in 1990. Ireland no longer is the irrelevant backwater it was then. Greater focus and resources on defending the State, its people and its economy should reflect its new dangerous environment.
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