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Analysis/Comment Last Updated: Dec 19th, 2007 - 13:17:15


EU: Ireland has the best of both worlds - the Anglo-Saxon and Social Models
By Michael Hennigan
Jun 2, 2005, 21:30

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Ireland heads GDP (Gross Domestic Product) per capita in the European Union, according to figures released on Friday June 3rd. In ranking terms Luxembourg is number 1, but its figures are distorted, as a large portion of its workforce lives in neighbouring countries.

In 2003, Ireland was the biggest per capita net beneficiary from the EU budget while the Netherlands was the biggest net payer.

Anthony Coughlan has been consistent at least in one way since he first campaigned against the referendum on Ireland's entry to the then European Community in 1972. He is still against the European project and was on the radio this week gloating over a scenario where the euro collapses.

The renowned economist John Maynard Keynes caustically retorted when challenged on changing his position on an issue: When the facts change, I change my mind. What do you do sir? From his cosy perch in Trinity College, the former sociology lecturer has fulminated for years against Europe despite the obvious benefit that the European Community and later the European Union brought to the Irish economy. Coughlan appears to be so obsessed to prove his 1972 position that the reality is just shut out.

In 1972 Coughlan warned the small relatively high paid group of skilled workers that German and Dutch tradesmen would take their jobs. What a threat to Ireland! Skilled people coming to our then poverty stricken backwater! In the referendum on the Nice Treaty, Coughlan warned against the threat of low-paid Eastern Europeans taking Irish jobs. The end of Soviet tyranny in Eastern Europe was even a reason  to rejoice.

While Couglan hasn't changed, there has been a marked change in the attitude of Irish politicians to the European project.

In the early years, Irish politicians spoke as one about the obligation of the "rich countries to help the poor countries on the Western periphery."

That tune has changed with our recent rise to the top of the EU wealth league, even though we are still net beneficiaries of the European Union's budget.

Source: Why Ireland Boomed by Professor James B. Burnham

As the debate rages about economic reform in countries such as France and Germany and the fear that "Anglo-Saxon" market changes would replace the European social model of State guarantees and protections, Ireland is in the currrently fortunate position of having the best of both worlds.

Ireland has massively benefited from inward US investment, by providing a low tax, business friendly non-unionised environment for primarily American firms. At the same time Dutch and German taxpayers are funding our farmers who are effectively depending on public welfare for two-thirds of their income.

So while the Tαnaiste (Deputy Prime Minister) Mary Harney can brag that Ireland is closer to Boston and Berlin, we have been lucky so far that the taxpayers in Berlin haven't reacted to our continued cash benefits from the EU treasure trove.

The Dutch taxpayers are at last waking up to a reality that they are the highest per capita contributors to the EU budget while Ireland is the highest net beneficiary.

Earlier this month, the European Commission issued an analysis of the 2003 budget. In absolute terms, most of the funds went to recipients in Spain, France, Italy and Germany. However, on the basis of national income, Portugal and Greece were the main recipients, followed by Ireland and Spain. Among net recipients, the net balance – the difference between payments into the EU budget and returns in the form of operational expenditure – was highest for Portugal (2.66% of GNI-Gross National Income). Among net contributors, the balance was highest for the Netherlands (-0.43% of GNI), followed by Germany and Sweden.

Only four countries benefited from EU money in 2003- Portugal, Greece, Ireland and Spain - while the rest were net contributors. In terms of cash per head, the funding amounted to a net receipt of €391.70 for each Irish national.  At the other of the scale, Dutch, Luxembourg and German nationals pay €120, €125 and €92.7 respectively, while each Briton pays €46.50. 

Statistics on Ireland's Net EU Receipts

Year

Receipts from EU budgets
(€ m)

Payments to EU budgets
(€ m)

Net EU receipts
(€ m)

% of GDP/GNI

2004

2,813.9

1,220.1

1593.8

1.3%

2003

2,690.8

1,130.7

1,560.1

1.4%

2002

2,545.0

1100.0

1,445.0

1.5%

2001

2,488.8

1,220.0

1,265.3

1.15%

2000

2,602.1

1,075.0

1,527.1

1.9%

1999

2,678.9

1,050.9

1,628.0

1.9%

1998

3,015.9

989.4

2,026.5

2.9%

1997

3,179.9

652.0

2,527.9

3.4%

1996

2,818.2

687.1

2,131.1

3.8%

1995

2,568.9

689.2

1,879.7

4.0%

1994

2,338.1

641.9

1,696.2

3.8%

1993

2,850.9

575.8

2,275.1

3.8%

1992

2,531.9

448.7

2,083.1

5.5%

1991

2,794.9

442.1

2,352.8

5.5%

1990

2,210.6

359.2

1,851.4

5.4%

1989

1,644.7

362.6

1,282.1

4.0%

1988

1,474.9

314.6

1,160.3

4.0%

1987

1,397.1

324.0

1,073.1

4.0%

1986

1,455.9

305.1

1,150.8

4.6%

1985

1,433.2

270.8

1,162.3

4.9%

1984

1,100.5

257.1

843.4

4.0%

1983

924.0

234.5

689.5

3.6%

1982

764.4

173.6

590.9

3.5%

1981

643.6

133.8

509.7

3.5%

1980

711.8

112.9

598.9

5.0%

1979

671.8

76.9

594.9

5.9%

1978

520.8

58.5

462.3

5.4%

1977

346.5