Séamus McCann, a 24-year-old consultant in Dublin, exemplifies a growing frustration among young Irish adults. Despite securing a university degree and stable employment, McCann remains unable to move out of his childhood home, a situation shared by nearly two-thirds of his peers. This predicament underscores a broader paradox in Ireland: while the country's economy is performing strongly, many citizens feel financially strained and insecure.

Ireland’s economic indicators portray a robust picture. The government anticipates a budget surplus of nearly €10 billion in the coming year, setting it apart from several European counterparts grappling with deficits. This fiscal strength largely stems from a fivefold increase in corporation tax revenues over the past decade, driven by a small group of US multinational technology and pharmaceutical companies. Notably, Apple, Eli Lilly, and Microsoft contribute almost half of these revenues. A unique aspect of Ireland’s taxation system enables the government to collect substantial taxes from companies managing intellectual property within its borders, even if production occurs abroad. For instance, Apple, which manufactures iPhones in China, paid approximately $17 billion in corporation tax to Ireland last year, a figure bolstered by a €13 billion EU back-tax ruling.

Despite this influx of funds, challenges remain. Infrastructure, including transport, health services, water supply, and energy, is aging or insufficient for a population that has grown by 10% since 2020. Ireland’s health system has over one million people waiting for hospital services for the first time, and Dublin faces water shortages amid delays to key projects. Housing shortages persist, with new construction falling significantly short of estimates for annual demand. Additionally, Ireland holds the highest electricity costs in the European Union, exacerbating cost-of-living pressures.

The government has responded by doubling state spending over the past decade, allocating nearly half of next year’s budget to welfare and health services, while also planning record investments totaling €20.3 billion in infrastructure projects. Nevertheless, the Irish Fiscal Advisory Council has criticized the government for rapid expenditure growth—averaging 10% annually—almost double the previously announced target, and warns that much of the corporation tax revenue is being consumed rather than saved. The government has established two sovereign wealth funds, aiming to save a portion of its surpluses for the future, with oversight from experts including the former head of Norway’s sovereign wealth fund.

Opinions diverge on Ireland’s economic sustainability. Some experts express concern over the country’s heavy dependence on a limited number of large multinational firms and their signature products—such as Eli Lilly’s tirzepatide for weight-loss drugs, Apple’s iPhones, and Microsoft’s software—as a potentially precarious foundation. Should tax revenues from these firms decrease, Ireland could face significant budget shortfalls within a decade. Emma Howard, an economics lecturer, describes the current fiscal situation as a “house of cards.” On the other hand, entrepreneurs like Jay Bourke argue that major companies are establishing long-term commitments to Ireland, pointing to Intel’s recent €5 billion expansion as evidence that the economic boom may continue.

Adding to the complexity are lengthy planning processes that delay infrastructure and housing projects. Industry observers note it now takes twice as long to build a house compared to a decade ago, in part due to legal challenges and regulatory hurdles. Recent reforms capping legal costs for project challengers have led to fewer delays, but obstacles remain.

Although Irish households have accumulated substantial wealth, with savings rising and property values elevating net household wealth to about €1.4 trillion, many still feel the pressures of rising costs and struggle to achieve financial stability. Economists observe a societal divide between those who are comfortable, those coping, and those barely managing amid inflation and infrastructure shortfalls.

Ireland’s recent economic trajectory recalls earlier boom-and-bust cycles, notably following the Celtic Tiger era, which ended in a severe financial crisis requiring a €67.5 billion bailout in 2010. While current conditions suggest strong short-term prospects, experts caution that shifts in global tax policies or market conditions could challenge Ireland’s fiscal position. The history of once-dominant companies like BlackBerry serves as a reminder of the potential risks associated with dependency on a select group of global players.

In summary, Ireland faces the task of balancing strong fiscal inflows with prudent spending and long-term investment in infrastructure and social services, all while navigating the uncertainties inherent in its economic model based on multinational corporate activity.