Country Profile: Ireland

IRELAND: full name The Republic of Ireland

Ireland is an island state off the west coast of Europe.

Demographics:

  • Population: 4,588,252
  • Capital: Dublin
  • Size: 70,273 km2
  • Government type: Parliamentary democracy. The current government is of the Labour Party
  • Major  language: English
  • Religion: Rep. Of Ireland is mainly Catholic
  • Unemployment rate:  2007: 4,457%,  2011: 14,7%
  • Leading industries: food processing, textile and electronics manufacturing are the leading industries.

The Irish economy was build on an agricultural basis, with a shift in direction in the late 20th century, towards a more servicebased economy.

 

History of Crisis:

  • Ireland’s boom throughout the nineties and up till 2007, was because of very low fiscal restrictions on foreign companies.
  • The very limited restrictions on foreign companies to do business in Ireland, also meant, that their involvement in their Irish-based departments was very light, keeping the dependency to a minimum.
  • Not a problem in a thriving economy. But in the year 2007, it turned out to be catastrophe.  That’s when the international financial crisis kicked in.
  • As a natural reaction to that, the businesses quickly reduced their activities away from their headquarters. And as a direct result, most of the businesses Ireland had been able to attract was local departments, almost overnight the rug on which Ireland had based its entire economy, was pulled from underneath it. Sending the entire Irish economy in a free fall.
  • The banks, having relied on the upswing up till 2007, found themselves in a vacuum. All of their loaning-business, turned out to be insecure, having to write off billions and yet billions of € every year.
  • A number of bail-outs was awarded to the Irish state from the EU.  When the Irish state received their latest bail-out in order to recapitalize the banks, the sum spent on the Irish banks totalled 70 billion €.  As of march 2011, the Irish banks have stabilized, and are now able to look forward again.

About Wyatt McCall