Intel is planning to sell off a minority stake in its plant in Leixlip to investment funds to raise cash for its large spending plans across the world. Photograph: Alan Betson
The Government says that two thirds of the recommendations of the Housing Commission are already in train - this is delusionalIrish universities are running on fumes. Who can blame them for tapping tourists for cash?This is one of the changes that have followed the war in Ukraine and the emergence of rising tensions with China. Big countries – led by the US – are increasingly thinking of investment as a key geopolitical tool.
As a result, manufacturing investment in the US doubled last year compared with 2022. In turn, US subsidiaries in countries such as Ireland fear that they are moving down the rankings for the next round of investment from their parent companies, which are increasingly likely to put their next plant back home.
Restrictions on where US companies can sell their chips are part of a wider game about the future of where they are produced. Europe responded to the US 2022 legislation by loosening State aid rules in key areas like electronics and clean tech. German government funding for a large new Intel investment in Magdeburg – the building of which has been delayed due to environmental issues – was facilitated by the State aid changes, allowing governments to put more cash on the table.
As this global arm-wrestle for investment continues, what does Ireland need to do? The developing subsidy war carries dangers, as big governments such as the US and Germany can clearly outbid this State. As a middleweight boxer, you can’t go head-to-head with the super heavyweights.from European governments to industry – and any attempts to do it at EU level are likely to be difficult to agree.