Ireland is a safe harbour in an increasingly fragmented world

This article featured in the Irish Examiner’s special report on US Business in Ireland, published in partnership with the American Chamber of Commerce Ireland, on February 14th 2025.

Ann-Marie O’Sullivan, founder and CEO of AM O’Sullivan PR, looks at the critical advantage that Ireland enjoys from its political stability.

In years to come, 2024 may be remembered as a turning point – a year of polarising election outcomes that reshaped the geopolitical landscape and deepened uncertainty across the globe. 

Escalating trade tensions, regulatory divergences, intensifying conflicts and political uncertainty have become the rule rather than the exception. This has forced organisations to reassess their global strategies, seeking out stable environments in which to anchor their operations. In the midst of this uncertainty, Ireland should solidify its position as a beacon of predictability, consistency and economic resilience.

US multinational companies crave political and economic stability. Recent global events have created a growing sense of unease, and organisations are faced with new challenges in trade, compliance and supply chain management. The economic impact of potential trade wars sparked by decisions made in the White House may require organisations to evaluate their global footprints, something which will cause no shortage of alarm within the corridors of Leinster House. It is vital that Ireland finds ways to effectively communicate its value proposition as one of the most stable countries in the EU from a quality of life and economic perspective.

Ireland has been enormously successful in attracting and retaining critical investment from US multinational companies, and great credit must go to the work of organisations like IDA Ireland and the American Chamber of Commerce, whose work has played a key role in that success. Almost 970 US companies directly employ more than 210,000 people in this country. 

Our traditional strengths — a highly-educated workforce, dynamic innovation ecosystem and access to the European single market — have been crucial to this. The outcome of November’s General Election, and the subsequently agreed Programme for Government, have added another string to our bow, providing a predictable environment for its clients in Ireland through to 2029, in stark contrast to the volatility seen globally.

This stability dividend extends beyond political certainty. Ireland’s consistent approach to corporate taxation, and regulatory frameworks, has created an environment where long-term strategic planning can take place without fear of sudden dramatic shifts. The country’s steady hand in economic policy-making has become an increasingly valuable asset in reinforcing its reputation as a reliable investment destination.

The broader global backdrop makes Ireland’s business environment proposition all the more compelling. The reshoring of supply chains, spurred by trade tensions, presents Ireland with an opportunity to strengthen its role as a gateway to the valuable European market. 

As companies recalibrate their operations to prioritise proximity to markets and reliable trading relationships, Ireland’s EU membership, English-speaking workforce, and strong regulatory alignment, will continue to solidify our position as the European partner of choice for US multinationals.

Moreover, the incoming Government’s commitment to doubling down on climate action and innovation has positioned it as a forward-thinking destination for industries of the future. Ambitious climate targets and investment in renewable energy infrastructure signal a clear commitment to aligning with global priorities. For US multinational companies increasingly prioritising ESG (Environmental, Social, and Governance) criteria in their decision-making, Ireland’s proactive approach offers a competitive edge.

However, Ireland’s continued success should not be viewed as a fait accompli. Challenges remain around planning, energy and water infrastructure, as well as housing. The Government’s commitment to addressing these challenges through substantial capital investment programmes demonstrates foresight and pragmatism, but leadership teams at US multinational companies will be keeping a close eye on delivery in order to copper fasten their confidence in Ireland’s capacity to support their long-term expansion plans. A failure to tackle these issues risks undermining the advantages that stability and predictability can provide.

As the world navigates an era of fragmentation and uncertainty, Ireland stands out as a rare constant. Its ability to offer stability, access to key markets, and a commitment to progress, has made it an appealing destination for US multinationals. 

That the Programme for Government explicitly calls out enhancing Ireland’s relationship with the United States as a priority is to be welcomed, as it indicates a cognisance of the strategic importance of these close ties. By doubling down on its strengths and addressing its challenges head-on, Ireland can ensure that its status as a safe harbour endures, even as the storms of geopolitical volatility rage on.