Fitzgerald confident companies will stay in Ireland despite US tax breaks

Michael Bolton

Fine Gael MEP Frances Fitzgerald has said she is confident companies that have invested in Ireland will stay here.

The Dublin MEP was speaking as the European Parliament discusses how to react to the US offering huge tax breaks.

The US Inflation Reduction Act is estimated to be worth more than $300 billion and has prompted fears that American blue chips in Europe could shift production back across the Atlantic.

Despite the act, Mrs Fitzgerald is confident that companies are committed to staying in Ireland, but admitted there could be difficulties in attracting companies in the future.

"I think the investment in Ireland is very steady," Mrs Fitzgerald said.

"So many of the companies that I meet from the States who invested in Ireland have an awful lot invested in terms of people, money, sights, education, training, I don't see that shifting.

"I think getting new businesses, maybe it will be more challenging, we will have to up our game."

Mrs Fitzgerald also warned Ireland may suffer in the trade dispute between Europe and the United States.

The EU is set to allow member states to grant generous subsidies in response to the multi-million aid package, but Mrs Fitzgerald fears smaller countries like Ireland could suffer as a result.

"What it could mean is smaller countries like Ireland are effectively discriminated against because we won't be putting that money into subsidies.

"There is a place for subsides, don't get me wrong. In Covid, we saw the amazing role the supports that we gave to businesses and individuals and what an amazing difference that made, but I think the commission has jumped a little too quickly," she said.