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European countries still have ‘negative perception’ of Irish corporate tax record

Internal study of diplomatic ‘soft power’ says more use could be made of popularity of artists like U2 and the Corrs

The State was working to build up new 'alliances' inside the EU since the UK, its closest ally, left the union after the Brexit referendum, the study said. Photograph: iStock
The State was working to build up new 'alliances' inside the EU since the UK, its closest ally, left the union after the Brexit referendum, the study said. Photograph: iStock

Negative perceptions other European governments have about Ireland’s low corporate tax rate remain a “challenge” for its reputation, an internal study on the Government’s diplomatic soft power found.

The study suggested Irish diplomats could lean into the enduring popularity of U2, the Corrs and even Boyzone in certain parts of the world, to expand Ireland’s economic ties and influence.

The internal Department of Foreign Affairs study, seen by The Irish Times, gives an insight into how the State’s diplomatic corps views Ireland’s standing in the world and its ability to use soft power to get its way.

Ireland’s economic success boosted its influence on the world stage and “rebuilding” that reputation after the 2008 financial crash and bailout was a “critical” aspect of the country’s story, the study found.

“The negative perceptions of Ireland’s tax policy among EU colleagues, however, remain a challenge,” the department study said.

The country was positively perceived as a small, “neutral and benign” state, and viewed as an impartial player, it said. Ireland was also seen as being “non-threatening” and helpful, the review by department officials said.

The department had the ability to deploy “considerable soft power”, in part thanks to Ireland’s commitment to values and its backing for international institutions.

However, the study noted the “re-emergence” of geopolitical rivalries and increasing retreat away from democracy in some countries posed a “risk” to Ireland’s softly-softly style of diplomacy.

The State was working to build up new “alliances” inside the EU since the UK, its closest ally, left the union after the Brexit referendum, the study said.

The department had been successful at using the vast Irish diaspora in the US and other countries “to facilitate access and influence”.

The internal study, completed in December 2023, was released under a Freedom of Information Act request.

Ireland had a good track record of using “cultural diplomacy”, such as the St Patrick’s Day visit of the taoiseach to the White House, or the stories of Irish writers, as a platform to build relationships.

The study suggested the department make better use of the continuing popularity of Irish musicians, who were a “significant” cultural asset. “Bands such as U2, The Corrs, The Cranberries, Westlife, and Boyzone remain extremely popular” in southeast Asia, the review said.

The study referenced the Irish embassy in Singapore taking advantage of a U2 concert in the country, by organising an adjoining event that “raised Ireland’s profile and progressed specific economic objectives”.

The paper said the idea was “inspired by a smaller-scale event organised when ‘Boyzlife’ (a hybrid of the two Irish bands Boyzone and Westlife) visited Singapore for the F1 Grand Prix in 2018”.

Diplomats were getting better at “leveraging” the State’s cultural offering, to work “on behalf of Ireland’s economic interests,” the study said.

The review was based on interviews with diplomats posted abroad and officials based in Iveagh House, the department’s Dublin headquarters.

The department had done well to “capitalise” on progressive referendums legalising same-sex marriage and liberalising abortion access, the internal paper said.

Ireland’s identity as a non-colonial state was a “useful opening gambit for Irish diplomats in many parts of the world,” especially in the Global South, it said.

The review noted a “potential credibility gap exists” between Ireland promoting progressive and inclusive values abroad, and the “lack of representative diversity” among Irish diplomats and officials.

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Jack Power

Jack Power

Jack Power is acting Europe Correspondent of The Irish Times