Explain how European Union policy has impacted on the Irish economy. - Leaving Cert Geography - Question 9C - 2020

The EU provides a single market with free movement of goods, services, capital, and labor, which encourages companies to establish operations in Ireland due to its advantageous tax environment. This influx of FDI has resulted in job creation, technology transfer, and has bolstered Irish exports, significantly boosting the economy.

Another major impact is the access to EU structural and cohesion funds.

These funds have been instrumental in developing infrastructure, such as the improvement of transportation networks and regional development projects, which contributes to economic growth and enhances overall competitiveness. Investment in infrastructure facilitates business operations, promotes tourism, and improves quality of life, further stimulating economic activity.

The enforcement of EU regulations on environmental standards has also impacted the Irish economy.

While these regulations promote sustainability and improve quality of life, they can impose additional costs on businesses. However, by pushing industries towards greener practices, it can lead to innovation and open up new markets for environmentally friendly products and services.

EU agricultural policies, particularly the Common Agricultural Policy (CAP), have significantly impacted the agricultural sector in Ireland.

The CAP provides financial support to farmers, aiding rural development and ensuring a stable supply of quality food. This financial assistance not only supports farmers’ livelihoods but also helps maintain the rural economy and promotes sustainable agricultural practices.

Lastly, trade agreements negotiated by the EU have opened new markets for Irish goods.

These agreements have allowed Irish exporters, particularly in sectors like agri-food and pharmaceuticals, to access a broader range of international markets, thereby enhancing economic growth and diversifying trade relationships.