The exercise of full political sovereignty has always had to be related to this fact of economic dependence … But with membership of the [European] Communities this British brake on our sovereignty would become instead a shared European commitment. For the time being at least, Dublin regards the EU as an indispensable forum in which to negotiate a political economy based on strategically balancing its major neighbours — the UK, the US and the EU itself.
Development or competition state? Writing in , the historian J. Of key importance here was a shift in EU funding initiated during the European Commission presidencies of French socialist Jacques Delors , which prioritised active labour-market policies. This turn peaked with a net transfer to Ireland of 8. The tense coexistence of market competition and social partnership is, of course, a defining feature of European political economy at every level. And whereas unemployment stood at The first, from to , is linked to productive investment, real knowledge and technology transfer and meaningful growth.
The second, from the adoption of the Euro to the financial crisis, is conversely marked out by a housing bubble, loss of competitiveness and out-of-control financialisation. The most convincing account of these dynamics was developed by the Cork sociologist Joseph Ruane. Even if the increasing US, UK and EU presence in Ireland was constraining in some degree, the resources they brought meant that the reduced space for manoeuvre could be better used.
A subsequent Memorandum of Understanding MoU detailed a gruelling austerity agenda in return for The crash saw GNI fall by 14 per cent from to and unem- ployment peak at Above all, this is true of the moves to a clamp-down on tax havens which began to receive greater support among Western governments in the post-crisis years. Last year for example, Ireland was named the largest tax haven in the world in a study by US and Danish academ- ics. This represents a complex threat to Ireland, not only because of its likely economic effects — the country remains by far the most exposed to the UK within 70 Renewal What lies behind the impressive show of EU solidarity with Ireland is the broader prospect of realignment within the EU, including around issues affecting integra- tion and tax.
Having shared most interests with the first two, the Eurozone crisis and Brexit have seen Ireland move steadily closer to the third. Where it has historically relied on London to limit financial reform within the EU, it will now look to Berlin. And where Ireland has looked to transatlantic investment to counter the shortcomings of a dysfunctional Eurozone, it will now seek to balance France with Germany in a form of integration which preserves as much of its access to American capital as possible. The political destabilisation of the UK since Brexit, far from encouraging imitation in Ireland, has pushed it closer to Europe.
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