Nearly a year ago, Ireland's government decided that its important relationship with the U.S. needed an economic and cultural boost.

In a review of its U.S. mission last March, the country announced plans for new consulates in the South, first in Atlanta and later in Houston.

But 2009 dealt Ireland's economy a tough hand. After an unprecedented 15-year run of growth, gross domestic product shrunk by an estimated 7.5 percent, and the Irish government slashed spending to cope with flagging revenues.

The Celtic Tiger was tamed, and as a result, its diplomatic ambitions were put on hold. As 2009 ended, the consulate had failed to materialize.

But the delay in no way indicates wavering commitment on the part of the Irish government, Michael Collins, the country's U.S. ambassador, told GlobalAtlanta during a trip to Atlanta Tuesday.

"I wouldn't take any significance from the fact that it hasn't happened today. We're working on it," Mr. Collins said. "Even though it was this time last year when we announced our intentions, the intervening year has been a year of rather extraordinary dimensions."

Atlanta is a "major economic hub" and a base from which to the Irish government can connect with members of the Scots-Irish diaspora, who have longstanding roots in Georgia, Mr. Collins said. As an example of existing ties, he cited the Georgia Tech Research Institute Ireland in Athlone County, which opened in 2006 as a vital center for industry-focused research in digital media, biotechnology and energy.

He also noted that Ireland's inbound investment agency, IDA Ireland, already has a presence in Atlanta. The city has thriving Irish community, represented by his audience at the Irish Chamber of Commerce luncheon at RiRa Irish Pub in Midtown.

As Ireland looks forward to recovery in the second half of 2010, the Atlanta consulate "remains a priority for us, and it still remains our intention to establish it just as quickly as possible, and the plan is to do that this year," he said. 

Mr. Collins stressed that the U.S. remains an important source of foreign investment, which drove much of Ireland's growth during its boom years.

U.S. firms - including big names like Coca-Cola Co., Georgia-Pacific, and United Parcel Service Inc. - employ 95,000 people in Ireland, an island nation with a population of 4.5 million. Many U.S. pharmaceutical, information technology and medical device companies have set up shop there to cash in on Ireland's low corporate tax rate and high level of innovation and education.

Thanks to these ingredients as well as access to 500 million consumers in the European Union, Mr. Collins was confident that Ireland would continue to draw U.S. companies.

"We hope to attract more inward investment because that's not just good for Ireland, it's also good for these global companies," he added.

In this way, economic ties with the U.S. are a two-way street, he said. Combined investment is $90 billion and annual trade tops $70 billion. Ireland ranks as the 10th largest investor in the U.S., and Irish companies like building products company Oldcastle Inc. employ more than 82,000 Americans.

Irish commercial activity in the U.S. could increase as the country regains its economic footing, Mr. Collins said.

"I have no doubt that as we go into the future, as Irish companies themselves become global players, just as American companies need locations in Europe and in Ireland, so too would Irish companies need ongoing locations in the United States," he added.

The ambassador briefly addressed some of the economic and political issues facing the EU. With its steep fall in 2009 and unemployment approaching 13 percent, economists often lump Ireland into a group of ailing EU economies including Greece, Spain and Portugal.

Greece is in danger of defaulting on government debt, sending destabilization fears across the 16-country euro zone. Leaders from the euro zone have hinted that they will prop up Greece to prevent a collapse that would devalue their common currency. Finance ministers will meet in Brussels with the president of the European Central Bank this week to determine the specifics of a rescue plan.

Mr. Collins would not comment on Greece's situation, but he noted that Ireland has shored up its financial sector and taken drastic steps to curb government spending to counter mounting debt, even enacting steep pay cuts for government employees.

He downplayed fears about devaluation of the euro, saying that being part of the euro zone has been "an important part of our stability in allowing us to manage our way out of very very difficult circumstances."

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