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EU—A MAJOR TRADING BLOC. 27 Countries 500m people (USA—293m;Japan—127m) The Single European Act created a uniform internal market The establishment of the single currency helps internal and external trade
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EU—A MAJOR TRADING BLOC • 27 Countries • 500m people (USA—293m;Japan—127m) • The Single European Act created a uniform internal market • The establishment of the single currency helps internal and external trade • A common transport policy is pursued:-Channel Tunnel;High speed rail connections is planned • A motorway network runs through the EU for trucks etc. • A uniform set of standards exists for manufactured goods.—increased internal EU trade • Internal+External EU trade=c.45%of all world trade by value
IRISH TRADE IN THE EU • Neocolonialism----Ireland continued trading with GB(96%--raw materials and unprocessed goods e.g. cattle on the hoof) • Economic relationship with GB was one of dominance and dependence • 1973:-Ireland joined the EU Ended the pattern of dependence on the British market(1998---imported31% and exported 20%)
EU INFLUENCES ON IRELAND--Positive • Ireland became economically independent of GB (e.g. single currency) • Ireland gained access to a very large market • IDA was able to represent Ireland as an attractive location for foreign MNC’s—access to EU market • EU Funds • CAP • Pensions for farmers • Consumer law and health and safety measures • €37b transferred in total---70% was directed to agriculture
EU INFLUENCES ON IRELAND-Negative • Indigenous industries collapsed • Unemployment • Loss of sovereignty in the Fishing industry? • Many small farmers went out of business
(CAP) COMMON AGRICULTURE POLICY • 1962 • Raise farm incomes • Increase farm output • Guaranteed Prices • Very costly---In the 1990’s the CAP was costing 65% of the total EU budget • Overproduction • Food Mountains • Storage Costs • High food prices
REFORM OF CAP • 1992 • Price supports were reduced • Direct income support was given • Milk Quotas (1984) • Set Aside • Decoupling
REPS • Rural Environmental Protection Scheme • Financial incentives to protect the flora and fauna of the countryside • Over 50,000 farmers receive payments
IRISH FISHING INDUSTRY • Ireland has 11% of EU waters. • The shallow, warm waters of the continental shelf and NAD encourage plankton growth • The plankton is the food for fish • The coastline is a sheltered indented coastline • The government was slow over the years to invest in the fishing industry • The access to some of the ports is not good. • The modernisation process has resulted in the concentration of the industry in 5 ports—Killybegs;Castletownbere;;Rossaveal;Dingle; Dunmore East
IRISH CONSERVATION BOX • ICB replaced the Irish Box—(a larger 80- km zone and included Ireland’s northerly waters) • The ICB comprises an area of 100,000 sq.Km--⅓ of the original Irish Box • It stretches from Waterford Hbe to Slyne Hd. • It follows the 200m undersea contour on its western side • It came into force in 2004
COMMON FISHERIES POLICY(CFP) • Common Fisheries Policy agreed in 1983(CFP) • Ireland was given 5.8% of the EU total annual catch(TAC) • EU countries have access to the Exclusive Economic Zone (320km) • Quotas are agreed in Brussels • In 2003 EU agreed that fishermen could only trawl for cod on 12 days each month in the Irish Sea
CFP • Structural Reform 1. Grants are provided to help skippers buy larger boats 2. Compensation is given to skippers agreeing to have their boats scrapped 3. Funds are made available to modernise fishing ports(examples) and transport links to market 4. Grants are given to communities to help to develop processing facilities 5. The EU negotiated an agreement with Norway—reciprocal rights 6. African countries are paid to allow long distance EU boats to fish in their waters
CFP 2 Conservation • Herring fishing is prohibited in the Celtic Sea • Minimum fishing nets are set to allow smaller/younger fish to escape • A TAC is set each year by Fisheries Ministers • Monitoring by aircraft and protection vessels
AQUACULTURE • Aquaculture has developed as an alternative to sea fishing • Salmon,trout and shell fish are farmed in inlets along the west coast.Killary,Bantry Bay,Clew Bay • 2003—the numbers employed was almost equal to the total of full time jobs in sea fishing • The output is worth almost 50% of the total income from the fishing industry
EU REGIONAL POLICY • GDP-Portugal-----------73% of the EU average Luxembourg----123% of the EU average Poland---------47% of the EU average In 1975 the Common Regional Policy was adapted to reduce ‘ the disparities ‘ between the various regions
COMMON REGIONAL POLICY Structural Funds • European Regional Development Fund(ERDF) –aiding industrial development and upgrading infrastructure • European Social Fund(ESF)—supports the training of workers, addressing the problems of minorities and marginal communities • Guidance Section of the Agricultural Fund—farm improvement • Financial Instrument of Fisheries Guidance—supporting fishing communities • 94% of structural funding is concentrated on 3 priority objectives
COMMON REGIONAL POLICY 2 3 Priority Objectives • Objective 1. –A per Capita GDP of less than 75%.e.g. Mezzogiorno, West of Ireland. • Objective 2– Regions of industrial decline. e.g Nord • Objective 3—Deprived areas of cities. Long term unemployment
COHESION FUND • This fund was set up in 1993 • Its aim was to help the 4 least prosperous member states—Greece;Ireland;Spain and Portugal • Leader Programme:-A self help scheme fro rural communities. It provides finance for projects developed by local people. • Partner Programme:-This is aimed at urban populations—to tackle long term unemployment
IRELAND & AN ENLARGED EU • The enlarged EU is poorer per head of population • Ireland will contribute rather than a be a recipient of funds • The population/market /labour market has increased • Free movement of people and goods