European Community/Union
The European Union (EU) was originally called the European Community (EC), until 1993 when the Maastricht Treaty on European Union (TEU) went into effect. The change of name to the EU signified the expansion of powers that occurred in the 1980s by this regional organization in Western Europe. Belgium, France, the German Federal Republic (West Germany), Italy, Luxembourg, and the Netherlands were the original nations that decided to pool some of their governmental functions into the EC. In 1973, Denmark, the Republic of Ireland, and the United Kingdom joined; followed by Greece in 1981, and Portugal and Spain in 1986. The membership of the EU increased to fifteen with the addition of Austria, Finland, and Sweden on January 1, 1995. (Wood and Yesilada, 1)
Presently , the European Union is becoming an Economic and Monetary Union (EMU) and a Political Union according to the Maastricht treaty. If the EMU is achieved by 2000, it will involve common fiscal and monetary policies in each member state and a common central banking system and monetary system. The Political Union encompasses the political integration of the member states principally through the Council of Ministers (members of the governments of each nation adopt policy measures applicable to each nation) and the European Council (the heads of state meet twice each year to make important decisions). The responsibility of presiding over and setting the agenda for the European Council is rotated every six months through an alphabetical rotation order of the member states. (Wood and Yesilada, 2-3). The three principal supranational institutions of the EU resemble the separation of powers underlying the United States government. The European Commission is a body of twenty commissioners (two commissioners from Britain, France, Germany, Italy, and Spain) nominated by the governments of the member nations and then formally chosen by the Council of Ministers. The legislative body, the European Parliament, has members directly elected by voters every five years in Euro-elections. Lastly, the European Court of Justice consists of judges nominated by the member governments and then chosen by the Council of Ministers. (Wood and Yesilada, 4)
Republic of Ireland
The Republic of Ireland joined the European Community in 1973 after unsuccessful attempts in 1961 and 1967. The attractions of membership for the Republic's economy was considerable; consequently, public support for membership in the EC was high. The EC's Common Agricultural Policy (CAP) would secure access for Irish exports to the EC markets while guaranteeing high prices. Although free trade would lead to job losses in the Republic, tariff-free access to EC markets would entice foreign investors. Additionally, Ireland would receive the major share of regional grants due to its status as the least developed nation in Europe. Even the potential loss of sovereignty would be compensated by involvement in European decision-making. Critics of the EC voiced concern that the EC would threaten Ireland's traditional policy of non-alignment and neutrality. (Munck, 109-10)
The EC policy with the most direct influence on Ireland is CAP. The objectives of CAP -- increase agricultural productivity, stabilize markets, and ensure reasonable consumer prices -- are carried out through agricultural price support and quotas to control surplus production. Ireland also benefits from various regional funds including the European Regional Development Fund (ERDF). Initially, CAP increased farm incomes; however, Irish land prices soared to the highest levels in Europe which closed doors on younger farmers. Between 1978 and 1984, the Republic experienced unfavorable economic conditions: high inflation and interest rates and a deepening recession. By 1980, the average farm family income had dropped by one-third, at levels lower than those before joining the EC. (Munck, 112-13) "In the 1980s there were periods of relative recovery (1982-4) followed by renewed depression (1985-6), but the simple picture of uniformly increasing prosperity was essentially over." (Munck, 113)
In the manufacturing sector, foreign firms now account for seventy-five percent of industrial exports, forty percent of all jobs, and fifty percent of output. The United States in 1990, at 36.2%, held the largest share of foreign investment in the Republic. The Republic has received substantial cash inflows from the various EC funds as well as EC loan instruments. Presently, the ERDF and the European Social Fund (ESF) account for two percent of government spending. In 1986, the document of the EC, the Treaty of Rome, was amended to forge more economic integration and unite the now fifteen states into a single market. With discussions on developing closer economic, monetary and political union, Ireland, Spain, Portugal, and Greece have demanded and received greater resources for regional development. (Munck, 118-19).
Negotiations of the Maastricht treaty began in December 1991. The EC leaders outlined a plan for achieving full monetary and currency union among EC countries by 1999. "The treaty also established new intergovernmental mechanisms for cooperation on foreign and security policy, as well as on immigration, police, and judicial affairs." (Baun, 2-3) The formal signing of the Maastricht Treaty occurred in February 1992; however, the Republic on June 18, 1992, according to its constitution, held a popular referendum on the treaty. A low voter turnout of fifty-seven percent yielded a sixty-seven percent vote in favor of the treaty. (Baun, 111) On July 1, 1996, the Irish assumed the presidency of the EU. Ireland's presidency focused on helping the inter-governmental conference (ICG) revise the Maastricht Treaty. Ireland's document was submitted to the EU's summit meeting in December 1996 with plans for expansion to Eastern Europe. ("Ireland, mighty midget", 46; "Irish mist", 50).
Furthermore, in 1995, Ireland's "economy grew by about 8%: 6.5% is the figure given by the cautious Central Bank, but the most bullish stockbrokers put it at nearly 9%." ("A Gaelic Boom", 58) The growth rate has since maintained levels of six percent growth, levels much above the rest of the European Union which buys seventy percent of Irish exports. Inflation has stayed low, although one in eight workers are unemployed in the Republic. Explanations for Ireland's success include subsidies fro the EU (2% of GDP) and grants and low corporate-tax rates for foreign-owned computing, drugs, and financial firms who are also attracted by EU membership and the well-educated English-speaking workforce. With the low budget deficit (3% of GDP in 1996) and the maintenance of the punt's (Irish currency) value in the European exchange-rate, the Republic has a fair chance of qualifying for the European Monetary Union (EMU) when the selection is made in early 1998. ("A Gaelic Boom", 58)
Northern Ireland
Within Northern Ireland, the European Community/Union has become a significant and increasingly noticeable actor within the affairs of the region. Since joining the EC in 1973 as part of the United Kingdom, policy-makers, political parties, pressure groups, and the electors have had to adjust to membership. In the early years of membership, debate about the EC was effectively sidelined as a result of the political and civil unrest accompanying 'the Troubles.' The 1975 referendum on EC membership gave the political parties within Northern Ireland opportunities to develop coherent perspectives on the issue. Though the electoral turnout was low at forty-seven percent, the debate about Europe overlapped with debate on the status of Northern Ireland, a unique aspect of Northern Ireland's membership within the EU. A marginal majority (52%) endorsed continued membership. Party support of the EC included the Social Democratic and Labour Party (SDLP), the Alliance Party, and the defunct Unionist Party of Northern Ireland (UPNI). Those in opposition included the Democratic Unionist Party (DUP), Sinn Fein (SF), and to a lesser degree, the Ulster Unionist Party (UUP). (Aughey and Morrow, 129-30)
The leader of the SDLP, John Hume, has been a staunch supporter of the European Union. Since the first direct elections to the European Parliament in 1979, Hume has been one of Northern Ireland's three members. He supports 'post-nationalist' politics in which the UK and Ireland will relinquish power and sovereignty to supranational and regional organizations. Furthermore, Hume has garnished much support in the EU, most notably as a part of the largest political grouping in the EP, the Confederation of European Socialists. The DUP party leader, the Reverend Ian Paisley, has also won four successive elections to the EP. As a long-standing critic of European integration, he believes the Maastricht treaty is a threat to national sovereignty and a way to undermine the Irish border. Ian Paisley sits as an independent and aims to defend the union with Great Britain and fight off republican and Nationalist forces. Though the DUP often advocates withdrawal from the EU, Paisley worked together in 1994-95 with the other two local MEPs (Hume, Jim Nicholson (UUP)) to secure EU monies to underwrite current peace initiatives in Ireland.
Although less strident in their opposition, the Ulster Unionist Party shares many of the DUP's reservations about the EU; however, many party supporters have benefited from the economic policies of the EU. The party's current MEP, Jim Nicholson, is a member of the pro- integrationist European Peoples' Party (EEP) even though he denies to the EU any role in the political and constitutional affairs of Northern Ireland. The pro-EU Alliance Party is a member of the European Liberal, Democratic, and Reformist (ELDR) grouping within the EU. Conversely, Sinn Fein, a critic of European integration, believes the EU will cause a loss of Irish sovereignty and threat traditional Irish neutrality . Recently, SF has demonstrated increased recognition of the EU, however, along with the Alliance party, SF has been unable to compete with the major parties in European elections. (Aughey and Morrow, 130-31)
Northern Ireland is represented in the EU through its three Members of the European Parliament (MEPs) and formally by the UK government's ministers on the Council of Ministers. The Northern Ireland Secretary of State, plus his ministers, serve as the official link between Northern Ireland and EC policy committees. Additionally, the Northern Ireland Office (NIO) exchanges the concerns of Northern Ireland with European ministers and other parties and vice versa. Another means through which Northern Ireland can question ministers and debate European matters is through its seventeen Members of Parliament in Westminster. Moreover, MEPs from Northern Ireland have doubled up as MPs for the last two decades providing a useful linkage. (Aughey and Morrow, 131-32)
Furthermore, Northern Ireland has special status as an Objective One region in accordance with the criteria defined by the EU. The Objective One status is due primarily to its economic problems including long-term unemployment and industrial decline as well as its delicate political situation. Accordingly, the region receives considerable financial support from the EU's structural funds, including the European Regional Development Fund (ERDF) and the European Social Fund (ESF). ERDF funds support infrastructure while the ESF targets the unemployed through government training and education. The Common Agricultural Program (CAP) has benefitted Northern Ireland's agricultural production. The province has also benefitted from the emerging Single European Market as a result of increased competition and wider opportunities within an open, expanding market. In addition, the EU supported INTERREG scheme brings the Republic of Ireland and Northern Ireland closer together through focus on border issues. Politically, the EU has refrained from interfering with hostilities in Northern Ireland in order to avoid actions which might be considered undue political interference. (Aughey and Morrow, 131; 133-34; 136)
In conclusion, the Irish, both the Republic and Northern Ireland, have benefitted from membership in the European Union. Both regions have received structural funds for regional development due to their poorer economic status compared with the other EU nations. Also, the Common Agricultural Program has bolstered the agricultural output of both Northern Ireland and the Republic. However, the border still is clearly defined between the regions, mostly due to the political situation and paramilitary hostilities; the EU has not been able to affect the Irish situation politically due to its reluctance to involve its institutions in internal affairs of member nations. The paramilitary ceasefires in 1994 increased economic cooperation between the Republic and Northern Ireland and lured more foreign investors to the island, although the end of the ceasefires signalled continued violence. Presently, though unemployment is high in both regions, the Republic's economy continues to boom while Northern Ireland is still in shambles. In the near future, the European Union might provide the mechanism for the Irish to transcend their border economically and politically, thus actively participating in European integration.
"A Gaelic Boom." The Economist 27 April 1996: 58.
Aughey, Arthur and Duncan Morrow, eds. Northern Ireland Politics. Longman Group Limited: London, 1996.
Baun, Michael J. An Imperfect Union. Westview Press: Boulder, 1996.
"Ireland, Mighty Midget." The Economist 29 June 1996: 46.
"Irish Mist." The Economist 7 Dec 1996: 50.
Munck, Ronnie. The Irish Economy: Results and Prospects. Pluto Press: London, 1993.
Wood, David M. and Birol A. Yesilada. The Emerging European Union. Longman Publishers USA: New York, 1996.