Study Concludes Single Market Has Benefited Irish Economy

by Jason Gorringe, Tax-News.com, London

20 February 2008

The Irish government has welcomed the publication of a new study which examines the impact of the European Single Market from an Irish perspective since its launch in the early 1990s.

The study, conducted by Forfás, the national policy and advisory board for enterprise, trade, science, technology and innovation, concludes that the Single Market has been important both for the growth and diversification of Irish trade, and for enhancing the attractiveness of Ireland for foreign direct investment.

However, from a business angle, the report also highlighted that certain structural barriers remain, dictating which countries Ireland is likely to do business with, for example, distance, language and culture. The report also identifies practical actions that can be taken to improve Ireland’s trade within the Single Market including: encouraging cross border insurance provision, simplifying business loan procedures and promoting cross border sourcing of inputs to production.

Welcoming the report, Minister for Enterprise, Trade and Employment, Micheál Martin observed that “it was a significant contribution to our understanding of how the Single Market had impacted on the Irish economy, including Irish consumers”.

He anticipated that the study would be of interest to the European Commission, and suggested that it was a “good example of how a Member State could influence thinking at a European level in ways that would bring practical benefits to Irish businesses and consumers”.

Minister for Trade and Commerce, John McGuinness noted that the study had got “beyond the high level issues such as the need for EU legislation and identified practical changes to the operation of the Single Market that would benefit Irish businesses and consumers”.

Dr Eoin Gahan of Forfás commented: “This report, through a combination of consultation and analysis provides a good picture of the positive impact the Single Market has had on Ireland and our economy."

"While there have been clear benefits for Irish businesses and consumers, the study reinforces the view emerging at EU Commission level that some obstacles to trade do persist, and that the Single Market can be enhanced by looking more closely at the practical application of EU measures on the ground.”

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