Leaving Cert Business THE EU: Institutions & Policies: Should Ireland leave the Europea

Should Ireland leave the European Union? Outline reasons for your answer. - Leaving Cert Business - Question C - 2017

Question C

Should Ireland leave the European Union? Outline reasons for your answer.

Worked Solution & Example Answer:Should Ireland leave the European Union? Outline reasons for your answer. - Leaving Cert Business - Question C - 2017

Step 1

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Answer

There are several compelling reasons for Ireland to remain a member of the European Union.

Economic Benefits: The Single Market created in 1993 eliminated trade barriers, facilitating the free movement of goods, services, labor, and capital. This access has significantly benefited Irish companies, allowing for greater economies of scale.
Financial Support for Agriculture: Under the Common Agricultural Policy (CAP), Irish farmers receive vital income support. Since 1973, they have benefited from approximately €44 billion in CAP allocations, which supports agricultural sustainability.
Structural Funds for Development: Ireland has received over €17 billion from EU structural funds, supporting regional development and improving infrastructure. These funds have facilitated development in areas like transportation and public services.
Foreign Direct Investment (FDI): Membership in the EU attracts investment by providing access to the EU market. This has created significant employment opportunities, with FDI in Ireland exceeding €30 billion today.
Single Currency Advantages: The introduction of the euro has brought additional incentives for foreign investment, stabilizing prices and simplifying travel and trade within the Eurozone.
Environmental Protections: EU directives, including environmental regulation, help to protect Ireland's natural environment and support sustainable development.

Step 2

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While there are benefits to staying in the EU, there are also notable reasons for considering withdrawal.

Regulatory Burden: EU regulations can increase operational costs for businesses. For example, the mobile operator Three increased its prices due to new roaming regulations imposed by the EU.
Loss of Sovereignty: EU rules and regulations can constrain national decision-making. An example is the national government lacking complete control over decisions that impact the economy, which are dictated by EU policies.
Economic Instability from Brexit: The uncertainties following Brexit have raised concerns about potential negative impacts on Irish trade, particularly in the agricultural sector. With Ireland's reliance on UK markets, a shift in trade patterns may be necessary.
Immigration Issues: Free movement within the EU can result in population pressures in certain areas of Ireland, leading to overcrowding and strain on housing and public services.
Tax Implications for Corporations: The harmonization of corporate tax rates in the EU may threaten Ireland’s attractive tax regime, which has drawn multinational corporations to operate there, potentially impacting tax revenues.
Apple Tax Case: The European Commission's findings against Apple regarding tax benefits signify how EU regulations can conflict with national tax policies, affecting government revenues.