Minister Paschal Donohoe
Minister Paschal Donohoe
Department of Finance, President of the Eurogroup
Ireland and the United States have long shared close cultural, historical, and economic ties. Such a foundation has created opportunities for mutually beneficial collaboration, and in recent years, has enabled us to respond effectively in the face of significant economic and geopolitical shocks. The strong economic ties between both countries continues to support employment, investment and trade. In doing so, it has raised incomes, improved living standards and strengthened the close bonds that have existed for over two centuries.
The driver of our economic cooperation is the fact that it is to our mutual benefit.
US investors talk about how they value Ireland’s highly skilled labour force and access to the EU market that make Ireland an attractive investment location. Our stable and competitive business environment is conducive to large scale multi-year investments across manufacturing, research and development. As a result, US companies in Ireland now directly support over 200,000 jobs and over 160,000 indirectly. In 2023, Ireland was the fourth highest recipient of direct investment originating from the US, with investment of nearly $500 billion across a range of sectors.
From an Irish standpoint, the benefits are equally beneficial. The size of the US market, low barriers to entry and the business friendly environment is attractive to Irish businesses across a range of sectors. Some 500 Irish-owned firms operate in the US, with the top ten Irish employers in the US now employing 115,000 people.
These are hugely significant facts and figures - protecting and fostering this relationship continues to be a top priority for the Government. Ongoing support for businesses was a key priority of Budget 2025. Following on from the enhancement of the R&D tax credit last year the Government delivered on a number of important commitments. These included the introduction of a new participation exemption for foreign dividends, which will greatly simplify the process of claiming double tax relief for multinational firms, together with enhancements to the Employment and Investment Incentive and to the Start-up Relief for Entrepreneurs and Angel Investor schemes. In the Programme for Government we commit to continuing this focus and will review and simplifying further the Business and Enterprise tax system with a clear focus to further promote innovation and support future growth.
In my role of President of the Eurogroup of EU Finance Ministers, I am keenly aware of the close relationship between Europe and the US. We are each other’s most important trade and investment partners, with closely intertwined economies. 2023 set new records with EU-US goods trade reaching $880 billion, services trade $700 billion and bilateral investment stocks reaching $5 trillion. We have a strong shared interest to protect, nurture, and develop this transatlantic partnership and marketplace to ensure shared prosperity for businesses and communities on both sides of the Atlantic for generations to come.
Our incredibly successful economic relationship has much further room to grow.
Building on such strong foundations, and leveraging the historic ties between our two counties and continents, I believe that we can continue to collaborate, innovate and invest in each other over the years and decades ahead.
Ireland remains committed to deepening our transatlantic partnership and to creating shared prosperity for businesses and communities on both sides of the Atlantic.