Businesses cannot cope

News has come though of a salon owner who opened up despite level-5 restrictions. I am in two minds where to stand on this one but it does show the extent that the Irish state does not care about little people that law-breaking is needed to survive.

Prior to 2013 bankruptcy in Ireland lasted 12 years and even today the process means losing everything. You are even only allowed a single bank account balance of €1,000 with everything else being frozen so the process of bankruptcy is pretty much still purgatory. As a result of this destroying someone’s business and livelihood is one and the same as destroying their lives.

Aside from a fortnight or so before Christmas Ireland has been under level-5 lockdown since mid-October and with the current extension to April that means the best part of six months with zero revenue. On this time-scale the maximum micro-enterprise loan of €25,000 is peanuts and with an APR of 4.5-5.5% it just kicks the can down the road. Bills don’t go away.

I would not be surprised if this case ends up in the constitutional courts. Irish businesses have taken an unusually heavy hit and yet the country as a whole does not have an especially low infection rate to show for it.

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