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Crisis Pounds Ireland— and Its Beer

Deteriorating economy drives away foreign investors

By Amelia Atlas,  Newser User

Posted Feb 8, 2009 9:02 AM CST
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(Newser) – If there's a sure sign that Ireland's vaunted Celtic Tiger economy has been reduced to a mewling kitten, it's Guinness' sudden cold feet on its planned $1 billion "superbrewery," reports the Wall Street Journal. Once the black-gold proof of Ireland's boom, the premium beer brand has been hit especially hard by the country's tanking markets, which have left foreign investors—like Guinness' British-owned parent company—unwilling to pour money into the shaky economy.

The Irish economy, after the boom years of the 1990s, has been hit harder than other European nations, as years of easy credit dry up and soaring property values tank. "We put all our eggs in one basket," said one official.

The Guinness storehouse gates in the St James's Gate brewing site, Dublin. British owner Diageo decided not to close the landmark brewery, one of Dublin's oldest businesses.
The Guinness storehouse gates in the St James's Gate brewing site, Dublin. British owner Diageo decided not to close the landmark brewery, one of Dublin's oldest businesses.   (AP Photo/Julien Behal/PA)
A customer drinks a pint of Guinness at the Guinness storehouse, May 9, 2008. Guinness owner Diageo rattled an Irish icon Friday, announcing plans to lay off more than half of its brewery workers.
A customer drinks a pint of Guinness at the Guinness storehouse, May 9, 2008. Guinness owner Diageo rattled an Irish icon Friday, announcing plans to lay off more than half of its brewery workers.   (AP Photo/Julien Behal/PA)
DUBLIN, IRELAND - APRIL 16: Visitors take a photograph at the Guinness brewery on April 16, 2006 in Dublin, Ireland.
DUBLIN, IRELAND - APRIL 16: Visitors take a photograph at the Guinness brewery on April 16, 2006 in Dublin, Ireland.   (Getty Images)
DUBLIN, IRELAND - APRIL 16: The Guinness brewery at St James's Gate on April 16, 2006 in Dublin, Ireland.
DUBLIN, IRELAND - APRIL 16: The Guinness brewery at St James's Gate on April 16, 2006 in Dublin, Ireland.   (Getty Images)
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COMMENTS
Showing 3 of 6 comments
rogerrayenz
Jun 9, 2010 4:53 AM CDT
Another fine example of the decline in quality and character of the Wall Street Post since Mr. Murdoch acquired it. micro sd card
upshotmatt
Feb 8, 2009 4:04 AM CST
this is more important than genocide and starving children
Guest
Feb 8, 2009 2:34 AM CST
Jesus Christ, man! This is serious business. We're talking about BEER

Ireland bails out its banks
Telegraph (UK)

Financial crisis roils Irish economy
Guardian (UK)

Ireland first euro zone economy to fall to recession
International Herald Tribune

World • Money

 
Ireland • Dublin • credit crisis • property values • Guinness

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