As a small open economy (click here) Ireland’s financial fortunes are largely dependent on international trade and influenced by global markets.
That means it’s important to build overseas partnerships and being part of the European Union enables Ireland to do just that in solidarity with other Member States.
Before joining the EU in 1973, Ireland’s largely agricultural based economy was choked by its dependence on the UK market.
At that time, industrial trade and international co-operation were becoming the norm and EU membership helped Ireland move towards a modern, free market economy.
The EU’s Single Market environment, together with decisions such as the introduction of low corporate taxes and the development of an Industrial Development Agency (IDA Ireland) to promote Ireland abroad, eventually enabled the new Irish economy to flourish.
One of the difficulties with small open economies like Ireland’s is that they can be vulnerable to global factors and Ireland’s strongest period of economic growth, from the mid ‘90s to the mid ‘00s, was followed by a spectacular crash sparked off by a worldwide financial meltdown.
This led to the Irish Government requesting financial assistance from the European Commission, the European Central Bank and the International Monetary Fund (IMF), collectively called the troika.
After several difficult years, Ireland’s economy is growing again and the European Union has introduced several new, powerful measures to better protect the economies of Ireland and all Member States from future financial shocks....
