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The February 2020 general elections saw a historic breakthrough for the nationalist Sinn Féin party, which has a left-wing platform but is above all in favour of reunification with Northern Ireland. It came out on top with 24.5% of the votes, but won only 37 seats (out of 160) because it had not put forward enough candidates. However, because of its links with the IRA, a nationalist paramilitary organisation that ended its armed campaign in 2005, the other main parties had ruled out any coalition with Sinn Féin, making it almost impossible for it to come to power. After four months of negotiations, Fianna Fáil (22%, 38 seats) and Fine Gael (21%, 35 seats), the two rival centrist parties that have traded power back and forth for a century, agreed to form a coalition with the Greens (7%, 12 seats) to obtain a parliamentary majority. The new Taoiseach (Prime Minister), Micheál Martin, leader of Fianna Fáil, succeeded Leo Varadkar (Fine Gael) in June 2020. However, according to the rotating leadership agreement, Mr Varadkar will return to power in December 2022 and take charge of the second part of the term. While tensions cannot be ruled out, this agreement should ensure political stability, as in the previous term, where Fine Gael governed as a minority with the non-participating support of Fianna Fáil.

The government has faced two important challenges that have shaped politics in Ireland since the last year: the political and economic consequences of Brexit and the crisis generated by COVID-19. Ireland's economy is highly dependent on the United Kingdom as a key ally, given its proximity and cultural ties. Moreover, the political dispute concerning the status of Northen Ireland (Ulster), confronting those who claim for Ulster continue being part of UK and those who aim the unification of Northern Ireland with the Republic of Ireland, is likely to be reopened with Brexit. This conflict was latent during the seconf half of the XX century, and intensified with the violence perpetrated by the terrorist group IRA. Good Friday agreement, signed on 1998, ended the violence and opened a peaceful time that has last until today. The Protocol on Ireland / Nothern Ireland, as part of the agreement between UE and UK that regulates the status of the island of Ireland, aims to stablish a soft border between the two Irelands and maintain in practice the freedom of movement. However, after the official withdrawal of the UK from the EU in January 2021, the border controls between Northern Ireland and Ireland were set in the Irish sea, something that have annoyed both factions in Nothern Ireland. To avoid an escalation of the conflict, the national Government of the UK and the regional Government of Nothern Ireland has stopped border controls with Ireland, opposing the UE Protocol. This conflict will suppose a focal point of tension in the region in the short term, although it is not probable that a hard border would be established. 

Economic prospects of Ireland will be affected by the future relation that they will maintain with the UK, as exports to the UK represents a 10,3% of the total volume of exports. According to the IMF, Ireland did not contracted its economic growth in 2020, that expanded by 2,5%,  thanks to the exports of pharmaceutical and technological products. While the activity of these firms will remain solid in 2021, the acceleration of the Irish economy will be driven by domestic activity, which was hit in 2020 by two lockdowns, first in the spring and then in the autumn. These measures, coupled with uncertainty, hampered household consumption and pushed households to increase their savings considerably, despite having their purchasing power boosted by support measures (short-time work arrangements, temporary reduction in VAT from 23% to 21% from September) Domestic and international businesses are likely to benefit from continued low corporate tax rates of 12.5% and other favorable conditions. GDP growth of 4.2% is expected in 2021, according to the IMF. COVID-19 projections foresee an increase in the number of infections from August 2021, although they are currently at low levels (IHME).

Political

Ireland is politically stable. Democratic traditions are well established, and the threat of an unconstitutional change of government is very low. While coalition governments are common, serious political instability is rare. The country is a member of the EU and the eurozone, but maintains political neutrality and is not a member of NATO. Ireland is a republic and a parliamentary democracy. Parliament consists of the Dail Eireann (House of Representatives, or lower house) and the Seanad Eireann (Senate, or upper house). The Dail has greater legislative power. It is elected for a five-year period using a proportional representation system. Membership of the Seanad is decided partly by the taoiseach (prime minister) and partly by panels representing various aspects of Irish life. The president is elected for a seven-year term, but the role is largely ceremonial. The last elections to the Dail took place in February 2020 and the next must be held by February 2025. The next presidential election is scheduled to take place in 2025.

Ireland – as an EU member – is subject to EU regulation, ensuring a stable business environment regardless of which government is in power. Companies and individuals have recourse to EU institutions if they believe that any regulations are not being properly upheld. The economy will remain open and focused on attracting foreign investment. The 12.5% corporation tax rate – a source of significant resentment among fellow EU members – is now a symbol of Irish independence. Both main political parties claim that they will defend it vociferously, even at the cost of removing technical measures that made Ireland an attractive domicile for corporate tax purposes. Ireland is keen to present itself as attractive to businesses considering leaving the UK over Brexit concerns, and is likely to ensure that its regulatory framework remains attractive, particularly to the financial services sector.

Ireland is considered a Full Democracy in the 2020 Democracy Index, developed by The Economist Intelligence Unit (EIU), where the country ranks 6 out of 167 countries scored.

The country ranks 2 at the 2020 Human Development Index developed by the United Nations Development Programme.

Operational

Rapid economic expansion in the 1990s and 2000s created a robust and modern environment for business. Successive governments have sought to prioritise the attraction of inward investment to Ireland, for example through a low corporate tax rate, and this policy is unlikely to change. Although some scope remains for labour disputes in light of continuing austerity measures, extensive strike action or militant protests against the government's austerity policy are unlikely. Infrastructure is generally good, though roads in and around the capital Dublin and other large cities are severely short of capacity and traffic delays are frequent. Bureaucracy is generally efficient and transparent. However, the planning process can be time-consuming and subject to legal challenges. Businesses are unlikely to encounter low-level corruption. 

Public transportation is efficient and safe. Most major cities are well-served by an extensive bus network. Dublin has two train stations, Heuston Station and Connolly Station, each linking the capital to western/southern regions, and to northern regions (including Northern Ireland) respectively. Dublin International Airport (DUB), as well as Cork (ORK) and Shannon (SNN) airports, offer regular flights to most European and American cities throughout the year.

Dublin counts around 13,000 taxis; they all feature yellow "for hire" signage on the roof that reads "taxi" or "tacsi." Most of them are equipped with meters. Although it is considered safe to hail a taxi off the streets, it is recommended to book one in advance from a licensed taxi company.

Overall, Ireland ranks 24 out of 190 countries scored at the 2020 Doing Business Index by the World Bank and 20 out of 198 at the 2020 Corruption Perception Index by the Transparency International Organization.

Security

Ireland has a good security environment, with few threats to assets or personnel. The capital Dublin is relatively safe by the standards of Western European cities and foreign businesses are unlikely to become victims of serious crime. Criminal elements are often engaged in long-running disputes and regularly use small explosive devices and arms against each other, though these groups pose little threat to legitimate business. Ireland is an unlikely target for an Islamist extremist attack because the country is historically neutral and lacks the global political significance of countries that have experienced attacks.

The probability of larger demonstrations has declined with the restrictions in place to contain the spread of the COVID-19 virus, but protest activity has recently begun to pick up again. Overall, unrest causing business interruption lasting more than one day or asset damage remains unlikely. Social and industrial relations are highly unlikely to deteriorate substantially, reducing the risk of mass protests or labor strikes. Austerity measures have led to large-scale protests in Dublin in the past but these are less likely now given the government’s spending plans.

The risk of Ireland being involved in an inter-state military conflict or the likelihood of civil war occurring in the country is very low and highly likely to remain so.

Although there is no precedent of major jihadist activity, there is nonetheless a moderate risk of low-capability lone-actor attacks perpetrated by radicalized individuals sympathizing with non-state armed groups such as the Islamic State. Jihadists may attempt to use Ireland as a staging post for attacks against the UK – regarded as a more high-profile target – because of the lower capabilities of Irish security forces and the current ease of travel between the countries. Similarly, there is a threat of dissident republican groups using Ireland as an operating base, but mainly to carry out attacks in the UK region of Northern Ireland.

Overall, Ireland ranks 8 out of 163 within the 2020 Global Peace Index by the Institute for Economics and Peace.

Cyber

Ireland is not currently among the most cyber-attacked countries in the world according to Kaspersky cyber threat map.

Health

No vaccinations are required to enter the country.

Ireland ranks 23 out of 195 within the 2019 Global Health Security Index, a project of the Nuclear Threat Initiative (NTI) and the Johns Hopkins Center for Health Security (JHU), developed with The Economist Intelligence Unit (EIU).​​

Natural

Ireland has a typically oceanic climate, moderate and humid with frequent rain showers. Summers are mild and winters are rarely very cold (temperatures seldom fall below 0°C). During the winter months, the country sees a lot of rain. July and August are the hottest months while May and June are the sunniest.

Many ferry services run between Ireland and the United Kingdom; delays and cancellations due to adverse weather conditions sometimes occur, particularly in winter months.

Adverse winter weather conditions have also been known to disrupt road and air travel.

If you plan to visit Ireland, stay informed by the Civil Defence.