The Irish government is guilty with others in hosting tax havens that contributed to the global financial crisis.
The ERSI describes the part of the Irish fiscal crisis due to global factors as ‘non-structural’ and recommends here that the government basically ignore these factors and focus on the domestic ‘structural’ issues, betting on a free ride, or automatic adjustments when the global economy picks up.
But it turns out that Dublin’s financial centre has contributed in no small way to the wider global fiscal crisis according to this report by the Tax Justice Network by hosting a substantial number of hedge funds in the Financial Services Centre. By the logic of agency invoked by the ESRI, Ireland’s contribution to the global financial mess should be addressed in the coming emergency budget. This means ending the privileges hedge funds enjoy under our tax system.
