/What woulds a default actually mean for Ireland

What about Tina Turner wearing just a headband?

South Africa is the place to be if you want Mad Max.

Forget Mad Max, with or without Tina Turner, with or without a headband.

Our masters in Brussels and Berlin wouldn’t let things get to that stage. A ‘peacekeeping’ force would be deployed and any of you shotgun and beans types out there who felt agrieved and let one off :laughing: pun intended, wouldn’t find that they haven’t the same moral reservations as the britz.

I know that corporation tax harmonisation would be crazy, but so was the bank guarantee, Lisbon II, NAMA, the Croak park agreement and all the other fucked up decisions that have been made. As OW said, its ultimately about control.

The euromeisters have probably already decided that ireland cannot pay back the money owed and there will be a readjustment of the loans. They don’t see it as killing the goose that laid the golden eggs as they feel that that goose is dying. They want to abolish the low corporation tax rate on both practical and ideological grounds.

Most european companies have close links with their national governments. These companies feel disadvantaged seeing (mainly US) multinationals having an unfair advantage with the low corporation tax rates in ireland and are pressing for a level playing field. They are pulling the european governments’ strings to make it so. If it becomes so, US companies will still want to trade in europe and will relocate to the continent as there is little for them in ireland except transport costs to get their goods to market. (our english speaking ability and educated youngsters will count for naught in the face of a trebling of corporation tax rate).

Most of old europe has a strong socialistic philosophy which costs money and multinationals which have relocated to europe will bring welcome, significantly increased revenue to these countries to help to support their social welfare systems.
In addition , they realise (which ireland didn’t) the potential for significant technological and knowledge based spin-offs which will enhance employment.

What is the result for ireland?
I suspect that it will be a little like Aldous Huxley’s ‘Brave New World’. Ireland will become ‘the reservation’ and the irish ‘the savages’. A holiday destination to see primitive european people in their native habitat.

As strange and as boring as it seems, the irish corporation tax rate is the line in the sand which cannot be crossed. If it is, it kills any hope that ireland may have of developing into an advanced technological society/economy within europe.

Well said Enoch Root. Sadly however I feel that it will go as part of a deal to have some of our debts written off. The only winners is this country will be ideological left loons.

If I’m wrong, then we should be looking to reduce our CT to 10% / 8.5%.

The mad max scenario → viewtopic.php?f=54&t=34834&p=460914#p460914

Corporation tax is 15% in Germany. Hardly treble the Irish rate.

The real issue is the tax avoidance scams such as the “Double Irish”.

thanks to you all for the replies. Good food for though there and useful advice.
As Jcsmith and propwatcher surmised, I was wondering about the specifics of how it would happen if a default came to pass, and if so precisely how I can protect my family.
I imagine it will be like the days of of the IMF arrival: fervent and assured denials all round and then you wake up to find that it’s all over bar the shouting.
I was also envisaging a scene I seem to recall from the Argentine default, where customers could only withdraw $200 If I am correct.

The other thing I was thinking is that it will happen faster than expected. Going on what I was reading in the financial columns, I was telling myself from around last July that the IMF would land in February 2011, and instead they descended in late November. So my speeded-up prediction for a default is now settling on late March. I’m not in finance, far from it in fact, but I feel my view is as good as anyone’s.

I’m not too excited about the plans of Fine Gael to do anything much to improve the situation. I believe they are too aligned to and intimidated by the powers in Brussels/Germany to do anything drastic.
Labour is just putting mad rhetoric out there to win votes, I don’t think they have an econlmic clue. And FF is not going to be a player, at least not for a year or so…
So with upstanding and blueshirted Fine Gaelers it will just be more of the sailing along on the Titanic just prior to the iceberg collision.

In relation to taking steps to protect my family, I have sold the house and we are now renting. This in itself could furnish a few lines in a different forum on the merits or otherwise of renting long-term in Ireland. In theory, it sounds great. In practice, it has lots of downsides (but for us more positive that negatives thus far).
By the way, I don’t suppose any of yez think it would be a reasonable time to buy…? It’s just that this waiting phase and not knowing what is the best thing to do is going on and on.

I am now wondering if we should keep a few bob in cash down the back of the sideboard in case the crash does arrive swiftly and we find ourselves battling through a queue of people at the cash-only desk up in Terminals 1/2, all of us trying to leave the country at speed. Or is this real beans and ammo territory? Tell me I’m being too dramatic.
Who’d have thought, even a few years ago that we would even be contemplating such a scenario?