• The EU single market is very competitive and only the most efficient Irish companies will be able to compete.
• Protectionism means that EU consumers must pay a higher price for non-EU products that have tariffs placed on them and ‘protected’ industries may not be efficient due to lack of competition.
• There are costs involved with transportation, currency and language when selling into the different countries within the EU single market.
• Companies in other member states can bid for Irish government contracts due to EU public procurement.
• There is pressure on the Irish government to comply with EU economic policy. For example, the Common Agricultural Policy (CAP) requires Irish farmers to offer their products at a set price to compete with other countries.
• High labour costs discourage some businesses from setting up in Ireland.
• Some global businesses have relocated from Ireland to other EU member states with lower costs. This has reduced revenue for the Irish economy and increased social welfare spending.
• Some of Ireland’s labour force may emigrate to other EU states due to the free movement of workers.
• Ireland’s social welfare system has to accommodate non-Irish nationals who come to Ireland with no source of income.
Should Animal Treats Ltd trade in the European single market? A
Go to page 235 of your Activities and Accounts Book to help Animal Treats Ltd decide whether or not to trade in the European single market.
THE SOCIAL IMPACT OF EU MEMBERSHIP
As well as affecting trade, Ireland’s membership of the EU has had an impact on the lives of the Irish people.
• The EU has helped fund many of our tourist amenities (e.g. the visitor centre at the Cliffs of Moher).
• The free movement of people within the EU allows Irish people to live and work in any member state.
• Many programmes promoting social inclusion in Ireland are partly financed by EU funding (e.g. the Rural Development Programme).
