European Union - U7

number of eu countries and euro nations

• 27

• 20

benefits of EU membership

• free trade/free movement of labour and capital

• larger market/ increased sales

• economies of scale- batch to mass

• single currency in the eurozone

• agricultural grants

challenges of EU membership for businesses

• extra regulations- increase costs

• increased competition

• exchange rate flocculations

• tariffs on trade between eu and non eu countries

• costs of distribution

SEM- single European market

there is no tax barriers to trade between members, and with free movement of good, capital and labour, each member has a common market

opportunities of SEM

• free trade and product lifecycles are lengthened

• capital- can borrow or invest from any other member state , allowing for the lowest interest

• reduced dependancy on a single domestic market

challenges of SEM

• competition- eg Aldi and lidl vs super value increases efficiency

• labour shortages- irish citizens emigrating because of free movement of labour

• eu directive- businesses must follow EU rules which may increase costs

why we trade within the eurozone

• no currency conversion

• transparency

• no flocculations

• increased efficiency

European Commission

main body responsible for the day to day running of the European Union

functions of European commission

• propose new legislation/laws-

• ensures law are implemented in all member states

• drafting and implementing the EU budget - ensures funds are spent accordingly

European parliment

consists of democratically elected members of the European parliament, who represent all the people of the member states, Ireland has 11

functions of the European parliament

• debates and discusses new proposed laws by European commission

• proposes amendments to draft legislation- gives feedback to EC

• approves the EU budget and monitors spending in states

• approves commissioners and monitors crime

council of the European union

share responsibility with the EU parliament for deciding on legislation drafted by the EC and making policy decisions , council is made up of 1 national minister from each state, eg 27 agricultural ministers

functions of the council of European Union

• power to negotiate new laws

• power to approve the EU budget

• will co-ordinate the economic policies of member states

court of auditors

monitors that all EU budgets are spent in an appropriate manner by all members or business that receives a grant

European court of justice

the court endures EU laws are obeyed in member states and are implemented correctly.

decision making process of the EU

• the commission propose a new law to solve a problem within the EU

• the commission will consult with interest groups

• the European parliament debates and amends the proposal

• the council of the EU decides on the legislation drafted by the commission and discussed by EP and if accepted it becomes law

• a new law accepted will be implemented by the commission as a directive or regulation

directive

a law that each member must implement, but each government is free to decide the panner of the law implementation , eg the time

regulations

law that will immediately come into force within all EU members and take preference over national laws, they are self executing and do not require implementing

EU decision

are laws that are binding on specific nations

role of special interest groups within the European Union

will attempt to influence the political and decision making process of the EU that will be beneficial to their members agendas, eg IFA

methodologies of special interest groups within the European Union

• lobbying

• offices in Strasbourg

• public protests

• campaigned

lobbying

a special interest group trying to influence the decision making process by promoting a particular view , that ill be beneficial to their members agenda

methods of lobbying

• contact MEP

• contact commissioners office

• contact TD’s and minister

• protests

common agricultural policy

was introduced to maintain good income for farmers and to insure the supply of vital produce for members nations at affordable prices

purposes of CAP

• freedom of the movement of goods/increased demand

• gives preference to farmers and their produce

• increased investement and better environmental standards

• financial solidarity

• food safety standard

common fisheries policy

ensures the effective production and management of EU fish stock and sets common rules throughout the industry

fishing quotas

quotas for certain types of fish, member nations get their national quota on the fish they can catch .. this has a negative impact on fishermen

fishing grants

grants supplied to help encourage innovation in fishing and upgrade and modernise irish equipments and boats

fishermen income

increase income of irish fishermen and insures consumers get fair price

common competition policy

encourages companies to offer consumers goods and services on the most favourable terms. It encourages efficiency and innovation and reduces prices.

benefits of common competition policy

• prevents anti-competitive cartels

• monitors and prevents/approves mergers that may produce a dominant firm

• ensures fair competition/deregulation of monopolies

• prevents government subsidising semi state bodies

common social policies

• freedom of movement of labour within the SEM and for immigrants

• working conditions must be fair and max hours a week is 48h

• health and safety

• miniumum wagę - 13.50

European structural policies

its goal is to increase economic and social cohesion and develop peripheral regions, tries to increase the standard of living

functions of the common structural policy

• European regional development - growth in peripheral areas

• European social fund - funds for unemployment

functions of the environmental policy

• energy efficient laws

• labelling

• green taxes

• public transport

advantages of joining euro

• no fluctuations

• increased competition

• lower costs

Brexit disadvantages

• trade barriers - no free trade

• unemployment

• the boarder - customs

• tourism

Brexit advantages

• investment - transnational companies will not go to UK

• immigration - immigrants will not go to uk but Ireland instead

• increase of demand for irish goods

advantages of globalisation for the irish economy

• modern capital- will bring new technology to Ireland

• labour skills- will upskill irish work force

• consumer choice is increased

disadvantages of globalisation for the irish economy

• exposure to economic shocks- if another country goes into recession we will feel it

• tax haven- global firms will see Ireland as a tax haven leading to criticism from other eu members