Bloomberg Audio Studios, podcasts, radio news. Well, the light is tier of threats from the US president are casting a shadow over the start of the World Economic Forum in Davos. European leaders are due to meet now later this week to discuss their response, which could include placing limits on market access for American companies. Let's discuss now with Michael Lowe and the CEO of IDA Ireland, the government agency
charged with attracting foreign direct investment, who joins US from Davas. Michael, good morning. How worried are you about this latest escalation of tensions between the US and Europe.
Good morning, Stephen. Yes, I think the last forty eight hours have certainly brought another level of uncertainty for global trade and for international companies. Just last week, actually, I was in the US on the West coast, and it's quite clear from an enterprise perspective, what they look for is they need global markets, they need global presence and
global workforce, and that's what they want to do. And of course, when you have maybe some potential changes in terms of tariffs, that can be disruptive, and we've seen that last year. The first half of last year was was quite difficult from an FDI flow perspective, and obviously decision making became quite delayed during that period. So so hopefully we will see some some dialogue over the coming days that will maybe bring more clarity and direction in the future.
In your conversations with those US companies, do you get a sense of frustration that they're unable to plan or make decisions because of the changing policies.
Well, I think the dynamics has probably shifted from I can out of the US and from even on Thursday night to this morning, and so last year obviously know that there was delayed in the first half of the year in terms of decision making that actually moved. I think companies found pats and and again decisions have to be made in order to support innovation, in order to to to serve markets, and so I think in some ways it's almost almost a deja vous back to where
we were last last April. But I do believe that the resilience of the enterprise base will continue to see with their path through because we have and I think enterprise have seen have seen the means of which you need to respond in terms of global investment and global flows, and I think that will continue. It's just that it brings another level of complication and complexity within their business, and.
We're waiting to see how exactly Europe will choose to respond to this. France wants the EU to consider using the anti Coercion Instrument, which could include measures like limiting market access for American companies. How damaging could that be for Ireland given the large amount of US investment there.
Well, I actually think it will be damaging for the global economy. I think beyond the Ireland, of course, certainly it would be an impact in all of our economies across the across the continent of Europe, because remember, like we have European companies serving global markets, we have US companies serving global markets, including the European markets. So it would actually have an impact in both directions. And I think what we're advocating for, and I think that's what
most people are advocating for, is is for dialogue. And to guess, I suppose into negotiations and discussions in respect of of setting aside the tires.
I think we have an.
Agreement in place between Europe and the US in our mind that should be honored and put into force. And if there's other elements need to be discussed on within They should be discussed and clarified. But I think we need to bring certainty to international trade because it is the lifeblood of all of our economies.
Would you be encouraging the Irish government to vote against using this anti coersion tool.
Well, I think that's the decision for the Irish government. But I think from an Ireland government perspective, and we've heard the t shot just speaking this over the last number of hours as well, is that you know, we
think it's time for some reflection and dialogue. I would certainly support that, but of course there will have to be decisions made at junctures and at particular junctures, so I think that should be a last resort from from from a European perspective, we should look to dialogue and resolution because as I mentioned, I think it will be it would be challenging both for the US economy and indeed for the European economy.
Michael, you're in Davos to meet with business leaders to talk about foreign investment to promote Ireland as a destination. How do you have conversations like that when the whole environment is so uncertain.
Yeah, it's it certainly is a different dynamic Stephen, I think that's correct, but maybe I'll go back to the to the principles. First of all, is that when you have international companies, they are serving international markets, so their markets still exist, their need for their product and their services still exists. The need for them to innovate and bring their their their R and D pipelines to fruition,
that's still that's still is in play. And indeed companies are looking to increase their supply chain, supply chain resilience, you know, in terms of decarbonization and sustainability to their supply chain. All of those elements still exist and are require because companies are future focused, the future focused in terms of growth, the future focused in terms of product
and services, and that's where we will have our conversations. Yes, we have to be conscious of the over arched and geer political environment, but ultimately companies will look to the future and look to actually see how they can continue to trade internationally, how they can have the best product and services and indeed the best workforce globally to support their business needs.
Are you seeing that companies, though, are having to downplay announcements about foreign direct investment decisions because of the fear of criticism from the Trump administration. You had a record year for attracting foreign direct investment last year. Are companies though, trying to keep it quiet about some of the investments they're making.
Well, you're correct. We had a record year last year, and I think if you put that in the backdrop of the year that was twenty twenty five an outstanding performance to actually deliver a record year from an FDI perspective, And just to put that in context, we had a thirty six percent uplift year and year in twenty twenty five across all territories, you know, across all territories across the globe. And what really was impactful on that is
that maybe I'll just speak to the three areas. First of all, first time investments into Ireland continue to remain strong, so twenty five percent other investments or almost eighty investments or first time investments into Ireland. The second area was innovation in R and D really strong two point five billion supported last year through the IDA in terms of R and D investments. And the third area was a
real focus on transformation upstilling of the workforce. We supported almost thirty four thousand people in the Irish workforce to be upscaled last year. So we're seeing companies continue to be that future focus. And just on announcement. Just last last Friday actually we had an announcement with Caalcom actually expanding their operations in Ireland and that's on semiconductor design.
So yes, investments continues, announcements continue, but I think companies are also very conscious of the world in which we now reside.
How does the year ahead look? Where I think is it going to be a more difficult year.
I think the year ahead is going to continue to be, you know, hyper competitive. I think it's going to continue to I think bring challenges as we go forward, and I think as it starts, I think we're going to
continue to see that. And I think what we're seeing is that, you know, the pace of change, the pace of innovation is continuing and we're going to have to continue to adapt and be agile because the world has certainly the pace of of both from a geopolitical perspective and technology perspective continues.
Okay, Michael Lowan, CEO of i D A Ireland, thank you very much for joining us from Davos this morning,