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The EU at 50: The good, the bad and the Euro

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  • The EU at 50: The good, the bad and the Euro

    Irish Independent
    March 24, 2007 Saturday

    THE EU AT 50: THE GOOD, THE BAD AND THE EURO


    By Edward McCann

    It's now just under a year since we saw grand celebrations to mark
    the 80th anniversary of the Easter Rising, an event which many
    believe marked the birth of the Irish Republic. Tomorrow, an
    anniversary with perhaps even greater significance for our economy
    and day-to-day lives will pass without much to-do in Ireland - though
    there's a big bash in Berlin.

    Fifty years ago, the foundations stones were laid for the European
    Union with the signing of the Treaty of Rome. Six Western European
    countries joined to form the European Economic Community and put the
    ghosts of World War II to rest.

    Europe's record for the previous 50 years hadn't been very good:
    imperialist aggression in Africa and Asia, two world wars and the
    rise of genocidal ideologies. What has followed is an era of
    unprecedented prosperity and peace - and since 1973, Ireland has
    shared in this.

    So to celebrate this muted silver anniversary, we have a look at what
    the union has done for us for better... and for worse.

    Keeping the peace We may have been neutral in World War II and during
    the Cold War, but a victory for either Nazism or the Soviet Union
    would have had dire consequences for democracy on the continent. The
    European Union means that a war among the European powers is now
    inconceivable.

    Democracy has been cemented in the fledgling post-Communist states of
    the Eastern bloc and former dictatorships such as Spain, Portugal and
    Greece. Even Turkey - a country where mention of the genocide of
    Armenians can land you in jail - is cleaning up its act in the hope
    of gaining entry to the EU.

    Never mind the penguins The EU has a population of 500m - making it
    the world's largest First World trading bloc. Brendan Keenan, Group
    Business Editor at Independent Newspapers, recalls how a journalist
    from New Zealand once asked him to compare the position of Ireland
    and his own country.

    "I told him that within a 500-mile radius, Ireland had 400 million of
    the world's richest consumers. He replied: 'Yes, within a 500-mile
    radius, we have one million penguins.'"

    The open market has been of crucial importance to smaller countries
    such as Ireland. It has also played a crucial role in attracting
    foreign multinationals - the bedrock of the Celtic Tiger.

    Handy handouts Since Ireland joined the then EEC in 1973, it has been
    a net recipient of funds from Brussels. In 1997 the net gain peaked
    at 2,528 million - or 3.4% of gross domestic product. In GDP terms,
    the peak year was 1979, when Ireland received a net benefit of 595
    million, 5.9% of GDP.

    Even in 2004, a decade into the Celtic Tiger, the Republic received
    1,594 million. This amounted to 396 per head. Today, GDP in the
    Republic is 137.1% of the EU average, compared to 116.8% in the UK,
    but the country still receives more money than it contributes. This
    is due to end in the near future - an inevitability with the
    admission of the poorer eastern European nations in 2005.

    Previous to joining the EEC, Ireland's GDP was 60% that of the UK.
    When it comes to maths, it's a no-brainer.

    Travel and leisure The world's now a smaller place and, with economic
    convergence, having a weekend in Madrid, Rome or Berlin is as easy as
    spending the weekend in Connemara - and probably cheaper.

    Consumers can now shop in any EU country without paying additional
    taxes - with notable exceptions such as cars. Prices have come down
    as a result.

    Tourists from the EU can also expect to receive free medical
    treatment in any other member state - which is more than you get when
    you're at home.

    Consumer rights have also been bolstered through measures such as
    compensation for air delays and the right to return a product if it
    breaks down within two years.

    Speaking up for minorities In January Irish was made the 21st
    official language of the EU - despite the fact that it is used daily
    by hardly anyone in Dublin, never mind Brussels. This move provides
    an international boost for Gaelic at a time when it has seen a
    mini-renaissance due to TG4 and gaelscoileanna.

    Money matters The euro is the only international competitor to the
    dollar - the eurozone's population is 317 million, with a further 160
    million affected due to currencies pegged to the single currency.
    Last year the euro surpassed the dollar in terms of combined cash in
    circulation. The dollar is, however, still by far the most widely
    held international reserve currency.

    Green with envy If it wasn't for the EU, Ireland's appalling
    environmental record would be even worse - and that's saying
    something. The most recent example was on carbon emissions where the
    Union has set a target of cutting levels to 80% of what they were in
    1990.

    The new Irish Ireland's booming economy as been boosted by
    large-scale immigration from other EU countries, especially new
    members states in the East such as Poland and the Baltic states. Free
    movement of labour has led to a transformation in Irish society. The
    number of good-looking waitresses in Dublin has also seen a
    remarkable rise in recent years.

    And the bad ...Pound for pound? Ireland's old currency was much more
    distinctive than the bland euro notes and coins. A committee under WB
    Yeats chose English artist Percy Metcalfe to design the coins and
    notes.

    Metric madness It's a word no-one even knows how to pronounce... is
    it kil-O-metre or kill-ometre? The metric system may be logical but
    it hasn't got quite the lyrical flow of the imperial measurement.
    Give those European bureacrats a centimetre, and they take a
    kilometre. Mmm.

    Also, it's clearly a hazard when you're distracted while driving on a
    motorway trying to work out what 110km to Dublin means. So I multiply
    it be five, no wait, I divide it by eight and...

    Smugness Fifty years of peace and prosperity have led the EU to be a
    bit toothless when it comes to international crises, argues Nick
    Cohen, author of the recently released What's Left?. They made a mess
    of the Balkan crisis - and were only rescued by America. Only the UK
    and France retain armies with serious capabilities - leaving our
    defence in the hands of the much-maligned Americans, whose spending
    on defence dwarfs that of the European countries.

    Boring bureaucrats For an institution that is so important to our
    everyday lives, the European Parliament gets negligible coverage in
    Ireland. People feel little emotional connection with the EU and its
    institutions - the so-called democratic deficit.

    The EU has an unparalleled talent to bore you to tears - but don't
    worry, you can always escape to the Isle of Man and Channel Islands,
    which aren't in it.

    If you want to understand the EU and its institutions, however, the
    key thing to remember is something about three pillars and then
    there's something about directives and subsidiarity... Zzzzzzzzzzz.

    From: Emil Lazarian | Ararat NewsPress
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