It is not because a State amasses money that its inhabitants live better…
Just imagine: working, paying taxes, allowing your country to earn more money than it spends… and not living better than in France. This reality does exist. In Europe. In 2023. And not far from France. The figure is dizzying: 10 billion euros of surplus in the coffers, without selling oil or gas. Enough to make many Economy Ministers pale. But not Bernard Arnault, who collected much more alone between 2022 and 2023.
800km from Paris, Ireland is sitting on a real financial pile. Discreetly, the three-leaf clover republic amasses billions of euros, not thanks to luck. But the inhabitants do not necessarily benefit from it and face the same difficulties as in France on a daily basis.
This treasure is mainly due to the establishment of large international companies in the territory, taking into account the low tax rate applied to companies (12.5%, compared to 25% in France for example). There BBC explains that 12.6 billion euros of revenue comes from taxes paid by multinationals, starting with Apple (3 to 4 billion). Pfizer, Amazon and Meta (parent company of Facebook and Instagram) are also established there.
However, despite these very good economic results, the Irish (Northern Ireland excluded) do not benefit from more financial largesse than in France. The salary levels are the same: 50% of employees earn less than €20,100 per year and 50% earn more in both countries (Eurostat2021).
1 in 5 employees even have incomes below €13,400 each year in Ireland, compared to 1 in 10 in France. Low wages are therefore more important in this country also called Eire. On average, Irish households have €31,120 a year to live on (before all expenses), compared to €37,560 in France (Eurostat2021).
Lower incomes while the weight of inflation is as significant as in France (5.8% in 2023) and housing difficulties are similar: 20% of the family budget in each country is devoted to housing and Ireland recorded a 30% increase in homelessness between December 2021 and December 2022.
So what good is the money hoarded by the Government of the Republic of Ireland? The billions will be directed towards the creation of infrastructure and ecological projects, but, above all, towards national savings to finance pensions and health expenses, announced the Minister of the Economy. They will also allow the implementation of various tax measures for the purchasing power of the Irish. The nest egg is even expected to increase further in the years to come: a cumulative surplus of 65 billion euros is projected by 2027.