CHAPTER 36 – THE EUROPEAN UNION IRELAND’S MEMBERSHIP OF THE EU
EU membership offers a number of benefits to Ireland’s economy and also presents some challenges.
Economic Benefits of EU Membership to Ireland
• There are common tariffs imposed on imports from non-EU countries, which protects EU industries from cheaper imports. This is called protectionism.
• Tariffs cannot be imposed in the EU single market, making it easier for Irish firms to export to other member states, which leads to increased sales and profits.
• It is a large market of approximately 500 million consumers, which increases profits for Irish business and contributes to the economy.
• The Irish economy can receive funding and financial assistance from the EU. For example, between 1973 and 2008 Ireland received €17 billion in EU Structural and Cohesion Funds. The EU may also provide financial assistance in times of economic difficulty.
• Irish companies can bid for government contracts valued over €50,000 in other member states. The is called public procurement.
• Many global businesses (e.g. Intel) have set up in Ireland to avail of the opportunities of free trade in the EU market. This foreign direct investment (FDI) creates jobs and contributes taxes to the Irish economy.
• Being part of the EU single market has helped Ireland move from an agriculture-based economy to one driven by high-tech industry and global exports.
• Workers from other member states can become part of Ireland’s labour force and contribute taxes.