Ireland and the European Union (Leaving Cert Geography): Revision Notes

Impact of EU Policies and Funding on the Irish Economy

Introduction: Ireland as a Member of the EU

• Ireland joined the European Economic Community (EEC) in 1973 (now the EU).

• EU membership transformed Ireland's economy, reducing reliance on Britain and integrating Ireland into a major trading bloc. Key Benefits:

  • Access to the EU's single market of over 400 million people.
  • Attracts foreign direct investment (FDI) from multinational corporations (MNCs).
  • Significant funding through structural and regional development programs.

EU Trading Patterns: Internal and External Trade

Internal EU Trade (Within the Single Market):

• Free Trade in Goods and Services:
  • Removal of tariffs and quotas allows Irish goods to move freely across EU borders.
  • Key Irish Exports: Pharmaceuticals, ICT products, food and drink (e.g., dairy, beef).
• Main Trading Partners:
  • Germany, France, Spain, Netherlands are significant markets for Irish exports.

External EU Trade (Outside the EU):

• The EU negotiates trade agreements with non-EU countries on behalf of all member states, including Ireland.
• Examples:
  • Free trade agreements with Canada (CETA) and Japan reduce tariffs for Irish products.
• Benefits for Ireland:
  • Irish exporters benefit from unified EU trade agreements, opening new markets globally.

Irish Trading Patterns with the EU

• Key Export Goods:
  • Pharmaceuticals, machinery, and agricultural products (dairy, beef).
• Key Import Goods:
  • Cars, oil, and manufactured goods from Germany, France, and the Netherlands.

EU Policies and Their Impact on the Irish Economy

The following policies illustrate how the EU influences Ireland's economy:

Common Agricultural Policy (CAP)

• Objective: To support farmers and ensure food security within the EU.
• Impact on Ireland:
  • Provides direct payments and subsidies to Irish farmers.
  • Modernised Irish agriculture, improving productivity and food quality.
• Example:
  • Beef and dairy farmers benefit from export subsidies and guaranteed minimum prices.
  • Helps Irish agriculture remain competitive despite global competition.

Common Fisheries Policy (CFP)

• Objective: To manage fish stocks sustainably and share fishing rights among EU countries.
• Impact on Ireland:
  • Irish fishing fleets must follow EU quotas on fish catches to prevent overfishing.
  • Negative Impact:
  • Reduced control over Irish fish stocks.
  • Irish fishermen face limitations on how much they can fish.

Regional Development Funds

• These funds support economic development in less-developed EU regions.
• Examples of Funding:
  • Structural Funds and Cohesion Funds: Used to build roads, improve public transport, and enhance telecommunications in rural Ireland.
• Impact:
  • Infrastructure improvements increase economic opportunities, particularly in rural and western regions of Ireland.

Social Funding

• Objective: To promote job creation, skills development, and social inclusion.
• Examples:
  • Programmes like the European Social Fund (ESF) provide funding for education and workforce training in Ireland.
• Impact:
  • Helps reduce unemployment and provides opportunities for disadvantaged communities.

Transfer of Funds and Economic Independence

• Since joining the EU, Ireland has received over €46 billion in funding from the EU.
• Impact:
  • Raised Ireland's Gross National Product (GNP) by approximately 4%.
  • Significant improvements in infrastructure (roads, railways, ports).

Negative Impacts of EU Membership

1. Loss of Control Over Natural Resources:

• Fisheries are managed by EU quotas, limiting Ireland's ability to exploit its fish stocks.

2. Collapse of Some Industries:

• Removal of tariffs and free trade exposed small Irish industries (e.g., textiles, food processing) to global competition, leading to closures.