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The Impact of EU membership on Ireland
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While most Irish people will
have sped past the blue signs
along smooth new roads up and
down the country, indicating
that "This project was cofinanced by the EU", fewer
people will be aware of the
extent of change that the EU
has helped initiate in Ireland.
Since joining in 1973, Ireland has received somewhat over €60
billion euros from the EU.
EU funding has gone into into every aspect of Irish life: building the
economy; improving transport and communication networks;
increasing trade; creating employment; promoting cultural diversity,
peace and understanding; cleaning up the environment; restoring
tourism amenities; sustaining a country life and protecting human
rights.
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Ireland was poor when in 1973 it became part of the European
Economic Community. It had high unemployment, low levels of
income (€38 a week [1]), and high levels of emigration. In statistical
terms, it had an average income per head at 62% of the European
Union average.
This factor alone meant the whole country qualified as a high priority
blackspot in need of EU funding. In EU terminology, it was
designated an "Objective 1" [2] European region for the 24 years
between 1975 and 1999.
Ireland's economic growth was the result of a combination of many
factors:
1. billions of euros of EU funding over 36 years
2. a single European market established between the EU
members
3. the break up of national monopolies and their privatisation
4. deregulation of the marketplace across Europe
5. the encouragement of free and fair competition between EU
countries
6. unrestricted trade between EU member countries using
common rules
7. a large and growing market of consumers as the EU enlarged
and more countries joined
8. low corporate taxes introduced within Ireland (12.5%)
9. a stable Irish political system
10. a young educated English mother-tongue population
11. high levels of Foreign Direct Investment flowing into Ireland
The European economic and political climate therefore presented
the opportunity; Ireland's national taxation policies and the
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development of the EU made it an attractive location, and the EU's
funding made it all possible.
Thanks to Ireland's success we no longer qualify for the same
volume of EU funding as in the past. For the funding period 20072013, Ireland will receive Structural Funds of €750.72 million:
€375.36 million from the European Regional Development Fund
(ERDF) and €375.36 million from the European Social Fund (ESF).
The Border Midlands and Western region will receive a total of
€228.7 million of ERDF funding while the Southern and Eastern
region will receive €146.6 million. The Border Midlands and Western
region is classified as a Phasing-in Region while the Southern and
Eastern region is classified as a Competitiveness and Employment
region.
The €375.36 million of ESF funding will go towards promoting
human capital by upskilling the workforce and increasing the
participation of groups outside the workforce.
The Irish National Strategic Reference Framework (NSRF) sets out
in broad terms how Ireland will invest this money over the next
seven years to deliver growth and jobs, to strengthen human
capital, and to ensure balanced development and the reduction of
regional disparities.
Ireland's priorities for the South and Eastern and Border-MidlandsWestern regions for 2007-2013 are as follows:
1. Promote investment in human capital by upskilling the
workforce, increasing labour market participation, and
allowing groups outside the labour market to enter the
workforce. The authorities will focus on women, people with
disabilities, lone parents, travellers (the Roma community) and
ex-offenders. A special
programme will target
migrants, as they make a
very significant
contribution to the
economy.
2. Support innovation,
knowledge and
entrepreneurship in the
regions. The objective is
to boost research and
development (R&D) in areas and institutions (Institutes of
Technology mainly) where this capacity has been lacking in the
past. The aim is to double the number of PhD graduates during
the programming period. Ireland will also continue to develop
Foreign Direct Investment, one of the competitive
characteristics of the economy.
3. Strengthen the competitiveness, attractiveness and
connectivity of the National Spatial Strategy defined by the
government, through improved access to quality infrastructure
and promoting environmental and sustainable development.
Gateways and hubs will connect urban areas. There will be a
special focus on public transport and innovative environmental
solutions.
Further information on ERDF/ESF funding is available on the
following factsheets:
Ireland - Cohesion Policy 2007-13
European Cohesion Policy in Ireland
[599 KB]
In addition to the above, Ireland also participates in three crossborder programmes, with investment of €469.5 million:
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
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The EU Programme for Peace and Reconciliation (PEACE IIINorthern Ireland and the Border Region of Ireland);
The Ireland-Wales programme;
a programme involving Northern Ireland, the Border Region of
Ireland and Scotland.
Ireland also takes part in three trans-national programmes with
numerous other Member States. These are the Atlantic Area, Northwest Europe, and Northern Periphery programmes, with investment
of €494.6 million.
See here for more information on the effects of EU membership on
Ireland.
[1] The average weekly industrial wage in 2008 was €777.71.
[2] Objective 1 funding is given to regions where GDP is under 75%
of the EU average.
Last update: 15/04/2009 |Top
http://ec.europa.eu/ireland/ireland_in_the_eu/impact/index1_en.htm
http://ec.europa.eu/regional_policy/atlas2007/fiche/ie_en.pdf