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Created: 25 February 2012

Last Updated: 05 January 2016

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The Irish economy continues to struggle but PayPal’s recent plan to create up to 1,000 jobs here has cemented our growing reputation as the European hub for US online firms, including Twitter and Facebook.

The online payment group already employs 1,500 people at its Blanchardstown Centre of Excellence in Dublin. The jobs just announced will be based in Dundalk near the border with Northern Ireland. PayPal set up its European headquarters here in 2003 investing €15m in that initial project.

Despite an unemployment rate of 12.4 per cent, February has seen a significant upsurge in job creation across the Republic with most new positions being in the financial services and high-tech sectors.

Most commentators stress that Ireland’s low corporation tax regime and educated workforce are behind this continued inward investment.

Louise Phelan, vice president, PayPal, said the company had considered other foreign locations but had opted to stay with Ireland.

All this is on top of other very positive news from companies such as HP which has just announced a further 280 new jobs; healthcare firm Abbot which is creating 175 jobs and MasterCard which has decided to locate its new global headquarters for its technology operations in Dublin with 130 new jobs over the next four years.

Barry O'Leary, chief executive, IDA (Ireland's Industrial Development Authority), said the PayPal investment was a “clear endorsement of Ireland’s attractiveness to multinational investors”.

The Taoiseach (prime minister), Enda Kenny, added his voice when he said: “It is a clear recognition of the opportunities that Ireland offers global leaders like PayPal.”

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Created: 04 February 2012

Last Updated: 05 January 2016

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Created: 20 January 2012

Last Updated: 05 January 2016

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JamesTobinA flurry of cross-channel ministerial visits between here and the UK is almost certainly motivated by the two governments’ desperate desire to block a pan-European “Tobin tax” on financial transactions. This tax was first mooted by US economist and Nobel Laureate James Tobin who, as far back as 1972, wanted to curb what he saw as dangerous speculation in international currency markets.

But don’t be surprised if both sides are also discussing possible contingency plans for “eurogeddon”. In other words, what might happen if the euro-zone either shrinks or disintegrates entirely?

Last week, Taoiseach Enda Kenny was in London meeting UK Prime Minister David Cameron. The next day, Cameron’s deputy, Nick Clegg, was in Dublin. Last month Finance Minister Michael Noonan travelled to London to meet UK Chancellor George Osborne.

So what’s going on?

Well, it’s simple. Britain is Ireland’s largest trading partner, while Ireland is the UK’s fifth largest trading partner. Enough said!

Add in the small matter of the huge exposure of the two state-controlled UK banks, Royal Bank of Scotland (RBS) and Lloyds, to Ireland, and Britain’s £7bn contribution to the November 2010 bailout and you can see the picture.

Both sides are likely to have spent most of their time talking about the EU’s proposed Tobin tax. Britain is completely opposed to such a tax, fearing it would disadvantage the City of London, while in Ireland we are worried about its impact on the IFSC.

Logic would dictate that this was not all they were discussing.

The Bank of England has instructed UK banks to draw up contingency plans for a euro-zone break-up, and with the Irish Central Bank forced to deny publicly that it is printing punts, it defies logic that the two countries are not discussing eurogeddon.

And that’s scary!

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Created: 30 December 2011

Last Updated: 05 January 2016

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With the 10th anniversary of the euro in 2012, the European currency is fighting for its very survival.

The European Union is now bitterly divided over how to preserve the currency with the majority opting for the building of a closer fiscal union to preserve the euro. This has resulted in Britain standing on one side against this move and Germany and France on the other. However the continental European alliance has decided to move ahead with a separate treaty without the UK.

Twenty three of the 27 EU leaders agreed on implementing tighter integration at a meeting in early December which would result in stricter budget rules for the single currency area. However Britain strongly opposed any changes which would affect the current EU Lisbon treaty.

There is however very real concerns that the situation is not containable and many now believe that individual countries’ central banks have already contingency plans in place to revert to their pre-euro currencies if the worst comes to the worst.

Another worry is that a number of countries may be asked to leave the currency zone, such as Greece and Ireland. Both required bailouts that certainly helped push the crisis along and both have come under immense pressure during the later stages of 2011 to reform their government spending.

As an honest broker I believe that Ireland has done its bit but, and it’s a big but, I don’t think we can afford this bailout any longer which brings us down the road of, yes, default! And with default brings the unknown. Devaluation probably which will wipe away the value of a huge amount of peoples savings. And then who do we tie ourselves to because as Ireland PLC we are too small a nation to float a separate currency.

There is huge speculation in international circles that The Irish Central Bank is printing punts (pre-euro currency in Ireland).This has been strenuously denied but speculation only adds fuel to the fire.

However one overhang on this whole Euro crisis is Italy. The countries debt poses the biggest threat with sovereign bond yields at dangerously high levels. Simply put, Greece or Ireland could not undo the euro zone; Italy can!

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