Because P/E ratio has nothing to do with the EPS. It is determined primarily by a company's expected long run growth rate, and it's cost of capital (i.e., the market's perception of the company's risks in the long run).
Big deal, ok, Sweden is a member of the EU. It was more pertinent to note that it was not a member of the Euro. You missed the larger point of my post: unlike Ireland and Greece, Sweden is not a member of the Eurozone; it is that membership which makes the exit of either a Greece or Ireland exit problematic nearly impossible for the EU-18. The impact on the Euro of such a move my one of Eurozone states could be catastrophic, at least in the short run. In any event,...
Oh gosh. Where to begin.... well, let me address a couple of points you raise, to tell you why you're completely off-base (my numbering may be different from yours). 1. If you think "companies pay corporate taxes" and "consumers pay VAT" you're a bit clueless. In the macroeconomy, it's the consumer that pays both. It may vary from industry to industry depending on the factors that drive tax pass-through (and we do not have to get into it here), but suffice it to say that...
This is all bluster to make some noises that make it look/sound good for the EU. The consequence of adopting something like this will be devastating for the Irish economy. U.S. businesses will leave in droves. Ireland would sooner quit the EU than allow something like this to come to pass.
Bottom line: I predict it won't happen (well, maybe a couple of percentage points is possible as a sop....)
Moreover, the design of their car is laughably sad. It looks like an egg on wheels. The company has zero sense of aesthetics. (Barring its home page; I am impressed that it has been kept as it originally was).
Except that the 'absolute' dollar need for R&D spending -- which is more akin to a fixed cost -- has nothing necessarily to do with the level of sales. For example, the iPhone is over 50% of sales, but R&D spending on the iPhone has to be nowhere near what it was when the (now nature) product was introduced.