Trade War Adds Risk to Irish Financial System, Regulator Warns
Rising geopolitical tensions and shifts in trade policy have increased risks to Ireland's financial system, the country's regulator warned.
'From a financial stability perspective, any material slowdown in domestic economic growth could raise credit risks for Irish banks and negatively affect market sentiment towards the Irish sovereign,' Central Bank of Ireland Governor Gabriel Makhlouf told reporters in Dublin.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 hours ago
- Yahoo
Irish government rejects motion to stop sale of Israeli bonds
The Irish government on Wednesday defeated a cross-party motion that called on it to stop the Central Bank of Ireland from facilitating the sale of Israeli bonds. The motion, presented by the Social Democrats and supported by Sinn Féin, Labour, and People Before Profit, was intended to block what many refer to as 'Israeli war bonds'. The instruments provide economic support to Israel while it conducts military operations in Gaza, and Ireland's Central Bank currently approves the sale of these bonds in EU markets. Bonds issued by non-EU countries must be approved by the financial regulator in one member state before they can be sold within the single market. The bill failed with 85 votes against and 71 in favour, upholding the government's position. Several TDs, Irish members of parliament, argued that Ireland should not be involved in financial instruments that fund destruction in Gaza. The Central Bank estimated that Israel has raised between €100mn and €130mn from their sale. Taoiseach Micheál Martin nonetheless rejected claims that the Irish government is complicit in genocide by allowing the facilitation of the bond sales. Despite publicly acknowledging the severity of Israel's attacks in Gaza, he maintained that Ireland must oppose the military action within legal and diplomatic channels. As such, the government argued that it cannot legally direct the Central Bank due to its independence under Irish and EU law. When the same objection arose last month in response to a similar motion from Sinn Féin, party leader Mary Lou McDonald argued: 'We have over 20 pages of independent, robust legal opinion clearly stating that the bill is compliant with Irish law, European law and international law.' Related Entertainment world reacts to Greta Thunberg interception in Gaza-bound aid boat Does the public support the government of Israel in Western European countries? As per the EU's Prospectus Regulation, non-EU countries like Israel must meet disclosure and legal standards to issue bonds in the bloc. If those standards are met, the Central Bank doesn't have the authority to reject bond applications. 'The Central Bank cannot decide to impose sanctions for breaches or alleged breaches of international law. It is for international bodies such as the UN or the EU to determine how to respond to breaches or alleged breaches of international law,' said Central Bank Governor Gabriel Makhlouf. He added that the Genocide Convention applies to the Irish State, not regulatory bodies like the Central Bank. The reason why the Irish Central Bank is at the core of this issue — despite Ireland being one of the EU countries that has been the most vocally pro-Palestine — is Brexit. When the United Kingdom voted to leave the European Union in 2016, Israel chose Ireland to be the home member state to approve its bonds. Prior to 2021, this responsibility fell to the UK. The current prospectus for Israeli bonds is set to expire in September, but Central Bank officials believe that Israeli authorities will likely initiate the renewal process several weeks beforehand. In the absence of new EU sanctions or changes to existing legislation, the Central Bank will remain legally bound to approve the bond prospectus, regardless of the political fallout. Meanwhile, protesters have been gathering for months outside the seat of the parliament, Leinster House, and the Central Bank, demanding that the government block Israeli bond sales.
Yahoo
5 hours ago
- Yahoo
FinReg and CPA.com's alliance targets US
FinReg Global Solutions and have partnered to launch QMCore platform in the US, targeting a market of 18,000 audit and accounting companies. FinReg is an Irish innovator in RegTech, while is the business and technology arm of the American Institute of Certified Public Accountants (AICPA). QMCore is a quality management platform specifically designed for audit firms. This collaboration signifies a notable achievement for FinReg, providing access to a vast market comprising more than 46,000 accounting and audit firms across the US. FinReg is the first Irish enterprise to attain Preferred Partner status with QMCore aims to support audit firms in adapting to changing regulatory requirements, including SQMS No. 1 and QC 1000. Created in Dublin, this adaptable, cloud-based solution streamlines compliance processes and boosts operational efficiency for its clients. The platform delivers a unified system for conducting risk assessments, delegating responsibilities, and maintaining thorough audit trails. This capability is intended to alleviate the administrative challenges that audit firms encounter in their compliance activities. Through Preferred Partner Programme, QMCore will be accessible to a network of 18,000 firms. Established in 2017, FinReg is located in Sandyford Industrial Estate, Dublin, and caters to various sectors, including professional services and healthcare. FinReg Global CEO David Butler said: 'We are delighted with this long-term strategic partnership and it is a great outcome for us to have QMCore recognised as the preferred provider of a quality solution for an organisation such as 'The partnership reflects our commitment to delivering compliance-driven innovation that empowers firms to meet the demands of modern regulation.' "FinReg and alliance targets US" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
CNBC
5 hours ago
- CNBC
Why Apple, Microsoft, Pfizer and other U.S. multinational corporations set up shop in Ireland
There are 973 U.S. firms with operations in Ireland, according to the American Chamber of Commerce Ireland. Members of President Donald Trump's administration have signaled that some of that activity should return to the states. "They have all the IP for all our great tech companies and pharma companies," Commerce Secretary Howard Lutnick said in an appearance on the All-In podcast in March. "Those things got to end." Companies such as Apple, Microsoft and Pfizer appear to have taken steps to stow intellectual property in Ireland, reducing their effective corporate income tax rates. For example, the European Commission found that in 2014, Apple's effective corporate income tax rate was below 1% in Europe. Apple and Pfizer did not respond to CNBC's request for comment for this story. Microsoft declined to comment. "If you are Apple and you are raking in the profits from your iPhone sales, you can make a lot of those profits just disappear from your taxable income," said Alexander Arnon, a senior policy analyst at the University of Pennsylvania's Wharton School budget model team. The Irish government opened the country's doors to multinational corporations following an economic crisis that unfurled through the 1980s. Unemployment in the country spiked and a wave of migration followed. "That was clearly a driver of the tax strategy to make it even more attractive in the '90s. It helped that Ireland became part of the EU," said Kevin Kent, transatlantic practice chair at law firm Clark Hill. Many multinationals took to strategies such as the "double Irish." The strategy relied on the transfer of intellectual property between subsidiaries based in different countries with relatively low taxes. "It was a sort of an escape valve from high-tax countries," said Adam Michel, director of tax policy at the Cato Institute. "We were actually pushing companies outside of the United States, both their headquarters and their investment." The efforts paid off in Ireland. Growth in gross domestic product per capita surpassed rates observed across the developed world. International pressure led Ireland to revise its tax codes from 2015 to 2020, effectively ending the "double Irish" strategy. In 2024, Ireland's top corporate income tax rate rose to 15%. But multinationals continue to leverage provisions in Irish law such as capital allowances for intangible assets, which can reduce their operating expenses. Many U.S. businesses continue to operate in Ireland, particularly given its educated workforce, access to European markets and strong historical relationships. Watch the video above to learn more about why U.S. multinationals have flocked to Ireland
