Is the European debt crisis holding us back from economic recovery?
According to Moody's, Ireland's financial junk status will not be upgraded any time soon. It is more specifically because of the current situation in Cyprus.
The Cyprus problem
Cypriot banks reopened today following two weeks closure after the government received a €10 billion bailout thanks to the European Union.
Part of the deal involved 20% of deposits over €100,000 being subtracted by the ruling parties in tax.
With continued announcements in foreign direct investment in Ireland over the past few weeks, however, one has to question if we would be better off outside of the single currency. (In a recent Newstalk survey 73% of listeners disagree that we should consider leaving the EU)
Irish corporate tax rate
While Ireland continues to have large economic problems, the government's low corporate tax rate for multinationals appears to be working. This is in spite of many other harsh budgetary problems.
Companies such as Indeed.com, Keyedin, Zendesk and Red 5 Studios announced investment expansion in Ireland over the past year. With more multinational investment seeming to bloom partly due to economic trade missions to the United States, can we afford to stay in the Euro?
While trade with other European nations could suffer, Ireland's attraction as a low corporate tax platform strategically placed on the edge of Europe could propel us out of economic misery quicker.
Self-interested as it may be to make such a move, it would also have huge implications for European relations with Ireland.
Britain's self interest
One only needs to look across the Irish sea to witness the self-interested certainty the UK takes in protecting its own interests.
Just recently, Prime Minister David Cameron famously opted Britain out of an EU financial services tax because he knew how much London's status as a global financial services hub benefits London city and the wider British economy.
While the demise of large economies such as Spain, Greece and Italy could have major consequences for Ireland's economy anyway, can we be complacent in thinking we cannot possibly exit the Euro currency block?
With many homes in Ireland struggling even to pay their mortgages, can we afford not to investigate the consequences of a policy re-think in the area?
