Ireland & The Eu

The European Union (definition)

Trading block of 28 independent European member countries. It allows the free trade of people, goods, services, capital from one member of a country to another.

Why was the EU set up?

Promote free trade, finance underdeveloped areas, peace between states

When did Ireland join the EU?

1st January 1973

Name the what is able to move freely as a result of the EU

People, goods, services, capital (money), common currency (unofficial)

Free trade (Aims of EU)

EU members can trade g/s within the EU without any restrictions

Free movement of citizens (Aims of EU)

Citizens of the EU can invest their money in other EU countries

Removal of physical barriers (Aims of EU)

E.g. you can drive across the border to Northern Ireland without being stopped at the border

Common Currency (Aims of EU)

EU encourages member countries to use the euro. Countries that use the euro are called the Eurozone.

European Monetary Union (definition)

The name given to EU countries that have replaced their national currencies with the euro.

Benefits of the EMU to Ireland

Price transparency, price stability, low inflation

Price transparency (Benefits of EMU)

Single currency makes price comparison of products easy.

Price Stability (Benefits of EMU)

ECB (European Central Bank) has a monetary policy that focuses on price stability.

Low inflation (Benefits of EMU)

ECB has a low inflation policy. Makes it easier for businesses when planning, prices are guaranteed to stay fixed.

Economic benefits of EU membership to Ireland

Protectionism, access to wider markets, access to EU grants

Protectionism (Benefits of EU Membership)

From cheap non-EU imports (Chinese Garlic, Chicken Filets from Thailand) e.g. quotas, custom duties,

Access to wider markets (Benefits of EU Membership)

Allows Irish companies free access to over 500 mil customers

Access to EU grants (Benefits of EU Membership)

Grants from EU to develop infrastructure. E.g. M1

Economic challenges of Ireland's EU membership

Loss of control, increased competition for Irish companies

Loss of control (Consequences of EU Membership)

We have to accept any decisions/laws the EU makes.

Increased competition for Irish businesses (Consequences of EU Membership)

Irish companies have to face competition from companies in EU member states for gov contracts. E.g. any EU company can win the contract to print the JC papers.

Social benefits of Ireland's membership to the EU

Job creation, freedom of movement, environmental issues

Job creation (Social benefits)

Roughly 700,000 jobs created since Ireland joined the EU. Increased standard of living.

Freedom of movement (Social benefits)

Irish people can work, travel, study abroad in EU countries.

Environment issues (Social benefits)

EU laws on pollution improved well being of population

Social challenges of Ireland's membership to the EU

High levels of unemployment, poverty. Ageing population

High levels of unemployment, poverty (Social Challenges)

Need to create jobs across Europe

Ageing population (Social Challenges)

Replacement rate is falling. 2023 4 workers per retiree. By 2050 1:1. Pressure on public finances

What does the EU Commission do?

Propose new laws, ensure they're implemented, manages budget, manages running the EU

EU parliament

Represents citizens, debates laws, approves budget

Council of the EU

Made up of ministers from each country

Court of Auditors

Ensures tax money is used for its purpose. Financial report to EU

EU Court of justice

Ensures laws applied fairly in all states, fines countries who don't implement laws.

ECB

Controls interest rates, issues euro notes, controls inflation

Irish implications due to Brexit

Barriers to trade, Increased FDI, decreased tourism

Barriers to trade (Consequences of Brexit)

Irish companies deal with tariffs, makes trading with UK more expensive

Increased FDI (Consequences of Brexit)

(Foreign Direct Investment), Ireland only English speaking country left in EU. UK companies may relocate to gain access to EU

Decreased tourism (Consequences of Brexit)

Fall in value of pound, make UK tourists coming here more expensive.