Podcast
Questions and Answers
What was one of the major benefits of Ireland joining the EEC in 1973?
What significant change occurred in Ireland's taxation policy during the Celtic Tiger years?
What was a notable effect of the Industrial Development Act 2 (1981) on employment in Ireland?
What was the focus of the IDA’s Strategic Plan (1982-92) during Ireland's recession?
Signup and view all the answers
How did the economic conditions from 1980-85 impact Ireland's unemployment rates?
Signup and view all the answers
What was a significant effect of the tax credit system introduced in the 1999 budget?
Signup and view all the answers
What major event began to affect financial institutions in Ireland in 2007?
Signup and view all the answers
Which of the following sectors was NOT listed as a key sector in Irish business?
Signup and view all the answers
What was the purpose of the National Asset Management Agency (NAMA) established in 2009?
Signup and view all the answers
What economic plan did the Fine Gael/Labour government implement in 2011?
Signup and view all the answers
Study Notes
EEC Membership
- Ireland joined the EEC (European Economic Community) in 1973, alongside the UK and Denmark.
- This facilitated access to the CAP (Common Agricultural Policy), ECSC (European Coal and Steel Community), and EAEC (European Atomic Energy Community).
- Ireland received significant aid from the European Social Fund, Regional Development Fund, and Structural and Cohesion Funds during the 1970s and 1980s.
Economic Development
- Ireland's reliance on UK markets decreased due to the aid received from these funds.
- The European Monetary System (EMS) eliminated the link with sterling.
- Foreign investment, particularly from the US, significantly increased until the oil crisis of 1973, leading to a near halving of company incoming numbers.
- Indigenous industry growth during the 1970s was limited despite substantial FDI (Foreign Direct Investment).
Recession and Recovery (1980-1993)
- Ireland's economic situation worsened until the mid-1980s.
- A Fine Gael-Labour government implemented higher taxes to reduce national debt.
- Unemployment increased by over 10% between 1980 and 1985.
- Emigration resumed and economic growth slowed.
- Attempts to attract FDI from the US were hampered by US recession and similar attempts by other countries.
- IDA (Industrial Development Authority) Strategic Plan (1982-1992) shifted emphasis from financial incentives to human capital development, attracting service companies.
- Ireland's indigenous industry growth lagged behind foreign companies.
Social Partnership Model
- The government agreed to lower income tax in return for modern wage increases, under the Social Partnership Model and the Programme for National Recovery (1987).
- Taxation policy shifted to broader tax bands and allowances for lower-income earners.
Celtic Tiger
- A new Fianna Fáil-Labor coalition emphasized broadening tax bands and allowances.
- Employer’s PRSI, CGT, and corporation tax were cut.
- The 1999 budget introduced a tax credit system, promoting fairer tax distribution.
Financial Crisis (2008-2012)
- Early warning signs emerged in the US in 2007 regarding subprime mortgage problems.
- Irish banks suffered losses, leading to a government blanket guarantee on deposits and debts.
- National Asset Management Agency (NAMA) was established in 2009 to manage non-performing loans (€77 billion).
- Ireland was forced to negotiate an IMF bailout of €85 billion in 2010.
- Unemployment peaked at 16% in 2012.
Recovery
- A new Fine Gael/Labour government implemented a NewERA plan and National Recovery Plan (2011-2014) to boost the Irish economy.
- Expenditure cuts and increased taxation were key components of this plan.
- Ireland exited recession in 2012 and began slow recovery.
Key Sectors in Irish Business
- Key industries highlighted include Business Services, Financial Services, Engineering, Clean Technology, Internet, and ICT, among others.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz explores Ireland's membership in the European Economic Community and its economic implications from the 1970s to the 1990s. It highlights key developments such as access to various EU funds, changes in market reliance, and the impact of foreign investment. Test your knowledge of this significant period in Ireland's economic history.
