Wednesday, August 28, 2019

Ireland's transactional membership of the European Union

The Treaty of Accession 1972 was the international agreement which provided for the accession of Denmark, Ireland, Norway and the United Kingdom to the European Communities. Norway did not ratify the treaty after it was rejected in a referendum held in September 1972.
Here Jack Lynch, taoiseach/ prime minister, signs for Ireland. Ireland was the poorest country in Western Europe in 1972 with a GDP per capita at 50% of new EEC member Denmark, which was the richest. The 3 new members formally joined on January 1, 1973.
When Ireland joined the European Economic Community in 1973, the Iron Curtain hemmed in millions in the vast prison that was the Soviet Union and its satellite states while military juntas ruled Spain, Portugal and Greece. By any measure, the enlargement to 28 countries and the development of the European Union from the wasteland in the aftermath of World War II, has been a remarkable success of gigantic proportions. Ireland has benefited enormously and compromise is the essence of such a huge project.

Since the UK Brexit vote in June 2016 support in Ireland for European Union membership as reflected in opinion polls has risen to highs of over 90%. However, there has always been a significant transactional aspect to membership including the cute hoorism that has been a perennial factor in domestic politics.

Friday, August 23, 2019

Irish prices 27% above EU average, adjusted disposable income below

In 2018 Ireland had the second-highest prices of consumer goods and services in the European Union.  Denmark was on top at 38% above the average. It appears Luxembourg was level with Ireland but about 40% of the duchy's workforce live beyond its borders. Germany was just 4% ahead while Britain was at 17%. The Irish difference with Spain was 34%.

Ireland was the only EU member country to have experienced a fall in consumer prices in 2008-2012 and it's level was 18% above the EU average in 2013.

Thursday, August 15, 2019

Irish and Euro Area debt as recession fears rise

Debt data above are in respect of 2017 and 2007 for the European Union's 27 member countries (ex-UK) taken from the International Monetary Fund’s (IMF) Global Debt Database as both public and private debt data are available.

Sunday, August 11, 2019

Low interest rates, globalization, technological change and ageing

“May you live in interesting times," is claimed* by non-Chinese to be a Chinese blessing or curse and we are today living through not only interesting times in economics and finance but unique ones in the history of commerce.

Monday, August 05, 2019

Ireland's missing exporters

Naïve commentary on exporting and opening new overseas markets is not uncommon. International expansion often ends in failure — research published in 2017 by Banco de España (Bank of Spain) on service firm exporters in Belgium, France, Germany and Spain found that French export starters had the lowest survival rate with 31% of firms staying in the market after the first year. Spain was at 36% and 57% of new exporters had survived in Germany.