The Effect Of Joining The Eu

2020 Words9 Pages
This paper will begin by examining the two important factors, exports and imports, for the reason that they are central to understanding the effects from joining the EU. Ireland has an economy that is inherently centered on the difference between imports and exports, in other words; its terms of trade. The more units of exports that can be used to purchase a unit of imports, the more economic stability the nation displays. Ireland’s EU membership and its adoption of the euro initially facilitated a high level of imports from other nations within the Eurozone, because the single currency and open market access led EU nations to trade freely with one another. Ireland’s low corporate tax rate and its high tax revenues from corporate profits…show more content…
Between the years 1995-2007, however, Ireland witnessed a dramatic economic transition that eventually bled into what is called the “Celtic Tiger” era, which lasted from 1995 to 2008 (BBC, 2007). The country joined the EU in 1973, and has ever since reaped in the benefits of membership. Since 1973, the nation has benefited from over 17 billion euros in European Union Structural and Cohesion Funds, most of which were used to increase investment in education and public infrastructure (Irish Regions Office, 2013). In January 1999, Ireland abandoned the Irish punt and joined ten other nations in adopting a single currency, the euro. Ireland is ranked as one of the wealthiest countries in the OECD and the EU-28 in 5th place. In terms of the countries GNP per capita, which is a better measure of the national income, Ireland is below the OECD average despite the countries recent growth in the past few years. Irelands current GDP is at €160 Billion, with a growth rate of 1.4% per year (Irish Central Bank, 2012). In 2005 a study by The Economist found that Ireland has the best quality of life in the world. The Celtic Tiger period, provided the country with arguably one of the keys to its economic growth, which was the low corporation tax (Currently at 12.5% standard rate). Later on during the financial crisis in 2008, the Irish economy was affected severely. After the country experienced a 24-year (1984-2007) continuous growth it experienced a recession
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