Crisis Pounds Ireland— and Its Beer

Deteriorating economy drives away foreign investors
By Amelia Atlas,  Newser Staff
Posted Feb 8, 2009 9:02 AM CST
Crisis Pounds Ireland— and Its Beer
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)

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.
(Read more Ireland stories.)

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