A gray afternoon in Dublin may have marked the point whereIreland and Apple truly started to fall out of love, at leastpublicly.

Up until about 4.15 p.m. Tuesday, it was impossible to place acigarette paper between Ireland's hip young prime minister LeoVaradkar and Apple's Tim Cook, as they united to fight Europe'scontention that the government had granted the iPhone maker asweetheart tax deal.

That alliance began to fray this week, as Varadkar appeared toblame Apple for delays in the collection of about 13 billion euros($15.3 billion) in back taxes Ireland has been ordered to gatherfrom the company. The European Commission sued Ireland in Octoberfor failing to collect the money quickly enough.

“We don't want to be in a situation where the Irish governmenthas to take Apple to court because the commission is taking theIrish government to court,” Varadkar, 38, told lawmakers inparliament in Dublin Tuesday. “I think that message isunderstood.”

Apple declined to comment on this story.

Varadkar's intervention is the latest sign that all may not bewell in a partnership that stretches back more three decades. Whilethe two have joined forces to battle Europe on the tax question,elsewhere strains have emerged—mainly around the delays doggingApple's plan to build a $1 billion data center close to theAtlantic Coast, in the West of Ireland.

Two years ago, Apple simultaneously laid out plans to constructsuch vast facilities in Ireland and Denmark as part of one of itslargest investments in Western Europe. While the Danish facility iscompleted, the chosen site in the middle of an Irish forest liesidle, stymied by a combination of objectors and court delays.

After Bloomberg News first reported in September that theproject was in jeopardy, Varadkar said he had been reassured thatApple remained committed to the project. Just over a month later,at a meeting with the Irish leader at Apple's Californiaheadquarters, Cook refused to give Varadkar guarantees that itwould go ahead.

Apple agreed to continue considering the site close to the tiny,historic medieval village of Athenry only “in the context of theirfuture business plans,” according to Varadkar, leaving him open topolitical embarrassment back home.

Losing Patience

Meanwhile, European authorities were growing restive over thetax case. The Irish government had been due to collect the cash byJan. 3, and hold it in escrow until an appeal process is complete.Both Apple and Ireland are fighting the EU decision, which couldtake up to five years.

Last month, amid a string of delays, EU Competition CommissionerMargrethe Vestager finally lost patience, and Ireland was referredto the European Court of Justice for failing to recoup the money.That could leave the government on the hook for a fine.

Up to now, the government has diplomatically avoided publiclyblaming anyone for the delay, and Varadkar has to tread carefully.Apple employs about 6,000 people in Ireland, according to itswebsite. Most of those are based in Cork, where it's among thebiggest private employers in the city. The company is also amongthe biggest taxpayers in the country.

Yet, yesterday, Varadkar too seemed to lose patience aswell.

“We have indicated to it that we want the escrow accountestablished and funds to be paid into that account without furtherdelay,” he told the Irish parliament Tuesday. “That message isunderstood and I would anticipate progress on that in the comingweeks.”

From: Bloomberg News

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