The Pay related social taxes in other EU countries paid by companies are substantially higher than here - EU average is 21%. Here its 10.75%
Main reason for higher rates is the massive legal costs and delays involved in evicting someone who doesn't pay. In many EU countries its done and dusted with property on the market within 6 months if no arrangement is made.
Lets say I go along with the system in place in many EU Countries which allowed the fast eviction of someone who doesn't pay in six months,
In a downturn There will be lots of evictions of people in Ireland not seen in other EU Country's because of the Changes made in Pay related social insurance back in 1985/6 we moved away from what was standard in EU back then,
I myself worked from 1968 until 2016 the only time I was on layoff was in the downturn in 1984 for around eight months, I and many more like me could still pay our Mortgage because I still got around 75% of my wages on layoff,
I suspect back in 1984 most on layoff would have defaulted on some of there Mortgage repayments if they were getting the present rate of unemployment Benefit ,
Which brings us to the main reason Interest rates are/will be higher in Ireland than other EU Countries
Even if everyone payed every penny the could out of there unemployment Benefit in the last Downturn Mortgage Interest rates would still be higher than the Rest of the EU because our Default rates would be higher
Giving Working people who lost there jobs the same level of benefit as a person who had a free house and expecting them not to defaults on there Mortgage repayment are not living in the real World,
I know it will be hard for the smug to understand there is a connection between the Irish pay Related Social Insurance Benefit Rate and high Mortgage Interest rates,
I suspect Two earner income family's paying a Mortgage are hit very hard if one becomes unemployed under the present Irish Pay Related Social Insurance Benefit is not linked to former employment salary since 1985/6
I think Brendan needs to do a case study /Comparison of Irish people ability to pay there mortgage out of pay related social insurance against other EU Countries with lower interest rates in the last downturn,
It would be nice if Brendan and others Who are campaign for lower Mortgage Interest rates had a look at the Irish Pay related social insurance system in causing working people who find themselves out of work through illness /short time working /job losses defaulting on mortgages because of the Irish system,
I suspect Defaulting on Mortgages and taking a long time for the loans to be repaired in a downturn will keep Mortgage rates high in Ireland and keep providers out of the Irish Market,