Regional Integration Ireland and the European Union

Topic: BusinessConstruction
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Last updated: June 18, 2019

The (REI) “Agreements among countries in a geographic region are to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other”(allvoslog 2009) Pro Integration for Ireland Irelands experience with regional integration is the history of the involvement between Ireland and the E. U. In January of 1973 Ireland joined the EEC and participated in all the economic, monetary, and social programs.Many of the programs that came about by the integration are; common agricultural policies break with estg 1979, European social funds and H. R. development policies, European regional developmental funds 1975, and direct elections to European parliament 1979. Ireland is also one of the 11 founding members of the Euro zone which is officially the Euro area, and is an economic and monetary union.

The EU is made up of sixteen countries, Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.An assessment of the Irish experience of regional integration shows a small state has significantly reduced its economic dependence on a much larger neighbor. That this small state has been put on a politically equal footing with a previously-dominant neighbor, and this previously isolated state has become an active part of an influential bloc This Massive collective of countries offers the coming together of many different cultures, with complex, and advanced ideas from all walks of the European life giving many facets to the abundance of opportunity for integration to truly work.

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The European Central Bank is the responsible party of the monitory portions of the E. U. and though there is no common representation, Governance is handled by the currency Union.

(Hill 2007) The power of the Integration of the E. U not only for Ireland, but for what are called Micro countries have adopted some of the practices, countries like Montenegro, Monaco, San Marino, and Vatican City have also concluded agreements with the European Union. These agreements have allowed these Micro states to use the currency within their own boarders, and the European Central Bank has little complaint with the spread of the currency outside of the E.U specifically due to the increase in power the currency creates as it is adopted worldwide. Ireland at the current moment is struggling with the employment rates hitting an all time low, as of September of 2010 the rates listed at 14. 1% and rising, (euro stat Google). These rates of unemployment have hit a 16 year high (USA TODAY), however a recent dip in the recession has given a slight light of hope for a more productive country, all the while Integration has had a major impact on this by assisting countries reactively sending manufacturing over to Ireland with the promise and removal of all tariffs. Hill 2007) Anti Integration for Ireland The growing amount of citizens collecting state benefits for unemployment has increased 1.

2% up to a new all-time high of 437,922. The number that includes residents in part-time work who continue to be eligible for unemployment has gone down from Ireland’s prior record high of 437,000.When Ireland had suffered double-digit unemployment in the 1990s, the country labor force was a third smaller than its current level of 2 million. Ireland’s work force swelled during the Celtic Tiger boom of 1994-2007, when hundreds of thousands of immigrants from Eastern Europe, Asia and Africa settled here, helping to reversing Ireland’s own tradition of mass emigration for the first time”. (USA TODAY) Emigration has started up again over the past two years.

Unemployment is on the rise again, in part, because of government cutbacks as the leaders try to contain a budget deficit projected to run at 14. 3% of gross domestic product this year. Credit remains strained amid Ireland’s ongoing attempts to transfer more than 80 billion euro in toxic property-related debts to a new state-run” (USA TODAY) “bad bank. ” The difficulty of loss-making businesses to continue borrowing money has produced a surge in closures over the past year. A leading Irish insolvency law firm, Cavanaugh Fennell, reported in 2010 that 652 businesses have shut down this year, including 112 last month. “The firm said closures were running 25% higher than in the same period of 2009. The hardest-hit sectors have been construction, hospitality, manufacturing and car sales” (USA TODAY).How does all of this really apply to the Anti Integration of Ireland and the E.

U? opening boarders to other nations domestic and foreign can create a severe strain on local business, “mom and Pop” shops if you will, when a wood worker from Greece, creates a more magnificent piece and sells it for far less due to his ample employee staff that works well and cheep this Irish citizen is to suffer a loss in customer base, along with the newly threaded fear of falling into that line where one goes when they have nothing, poverty stricken and hungry looking for help from the already strained and stretched thin government.On the social side of the economy, and drain the resources set aside for the unemployment and the health and welfare systems sky rocketed with the world recession, and there is a down pour of migration within the EU to find work that will feed the families. Internationally major corporations such as Microsoft, Cisco, and other fortune 500 companies are moving more and more of their European support over to the Island of Ireland, and only time will tell if this free trade and location of outsource will have a good or bad impact on the economy.As seen before, when a company opens a call center, or outsources some form of labor into a struggling country, they get great savings on overhead for pay and benefits, however the country begins to rely on that source of income and the economy begins to rise to a factorable rate upside of poverty, we see this today in Mexico. Then like a dreaded Tsunami the company decides the cost profit ratio has shifted and as simply as they opened they close, leaving hundreds if not thousands unemployed and nervous.

Yet another crisis upon the existing government to scramble to find a band aid until a long term fix can be implemented.Lastly integrated monetary policy in Euro zone is not accompanied by sufficiently integrated fiscal and economic policies Integration of foreign policy even weaker than that of economic policyReferences Coman, A. , & Coman, P. (2010).

Ireland: An Example of Best Practices in the Utilization of EU Funds. Amfiteatru Economic, 12(28), 661-674. Retrieved from EconLit with Full Text database. International business : competing in the global marketplace / Charles W. L.

Hill. — 7th ed Dennis L. Cuddy, Ph. D.

June 12, 2006 (USA TODAY)

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