Ireland: Pricing itself out of a possible post-Brexit Bonanza?
The UK vote to leave the EU last year opened the door for Ireland to take a big chunk of the post-Brexit business. But Paul Wallace, Trading Coach & Founder of the London Traders Network believes that there are some very big warning signs in the Irish nation that could scupper those plans.
Recently Ireland has large growth. The Irish stock exchange has been making large swathes upwards. However when you look deeper there are some worrying trends. Brexit has massive potential to be a big hit or a big miss for Ireland. There are many places vying for Post-Brexit success. Frankfurt has been the much publicised city to take Brexit well, however there are competitors in Paris, Amsterdam and Dublin.
There is however a massive drag in Ireland/Dublin. The cost of living has spiralled massively upward. House prices rose 60% in the previous two years. Ireland has high business rates, high energy charges, expensive car insurance. This makes it far too expensive for people to relocate from London after Brexit goes through.
The employment make up of Ireland is worrying. A small tax base has to pay for a very large civil service base. This is compounded by a 40% differential between Public and Private sector pay. This is a huge liability in the governmental cost. Wages are far outstripping Eurozone pay for the public sector.
Although Corporation tax in Ireland is very low though. The cost to live there and the lack of infrastructure are a big negative. It seems as though Ireland has priced itself out of the running.