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Europe

Ireland
Last reviewed: 18 June 2009

Country information

Area: 70,282 sq. km (27,000 sq. miles)
Population: 4.2 million (Census 2006)
Capital City: Dublin (population: 1 million)
Languages: Irish is the first official language, although English, the second official language is almost universally used.
Religions: Roman Catholic 86.8%, Church of Ireland (Anglican) 3%, Presbyterian 0.6%, Methodist 0.3%; Jewish 0.05%; Other 3.3%;  No religion 4.4%; Not stated 1.7% (Census 2006)
Currency: Euro
Government: The 1937 Constitution makes provision for a President, elected by the population every 7 years; a Dáil (pronounced 'doyle') or lower house of Parliament, with 166 members (TDs); and a Seanad (pronounced 'shannad') or upper house with 60 members. The Government consists of a cabinet led by the Taoiseach (pronounced 'tee-shock') i.e. Prime Minister. Parliamentary elections are held every five years, or less if the President dissolves Parliament on the advice of the Taoiseach before its full term. The present government was formed in June 2007 after Bertie Ahern’s Fianna Fáil (FF) party won enough seats in the General Election to form a coalition government with the Greens, the Progressive Democrats and some Independents. Following Bertie Ahern’s resignation on 6 May 2008, Brian Cowen (FF) became Taoiseach following a confirmation vote in Parliament.
Major political parties (number of TDs elected at 2007 General Election): Fianna Fáil (77); Fine Gael (51); Labour (20); Progressive Democrats (2); Green Party (6); Sinn Fein (4); Independents (5)Head of State: President Mary McAleese (since 1997 - started second term on 11 November 2004)
Taoiseach/Prime Minister: Brian Cowan (since 7 May 2008)
Foreign Minister: Michael Martin (since 7 May 2008)
Europe Minister: Dick Roche (since June 2007, previously held same position 2002-2004 – including during the most recent Irish Presidency of the EU)
Membership of international groupings/organisations: European Union (EU); United Nations (UN); Council of Europe (COE); Organisation for Security and Co-operation in Europe (OSCE); World Trade Organisation (WTO); International Bank for Reconstruction and Development (IBRD, also known as the World Bank); Organisation for Economic Co-operation and Development (OECD); Partnership for Peace (PfP).

DID YOU KNOW?

• Every man, woman and child in Ireland spends an average of £3,422 per year on British goods, the highest per capita spend on British products in the world.
• Every year the UK imports Irish dairy products worth over £254 million

ECONOMY

Basic Economic Facts

GNP: EUR 157.9bn) (2007)
GNP per head: EUR 31,600 (2005)
Annual Growth: 5.0% (March 2006 - OECD)
Inflation: 4.9% (September 2006)
Government Debt (% GDP): 25.1% (2007)
Major Industries: Computer software, information technology, food and drink, pharmaceuticals, tourism
Major trading partners: The UK is Ireland's largest single trading partner, along with the US, Germany and France.
Exchange rate: approx £1 = є1.26(May 2008)

For many years Ireland had a struggling economy. However, since the mid-1990s with the emergence of the 'Celtic Tiger' that has changed.  Strong growth rates (up to 10%) reversed the trends of high unemployment and mass emigration. The key factors behind this boom included multinational investment, low corporate tax rates, a stable relationship between employers and unions (Social Partnership) and a highly educated workforce. The EU Single Market also helped Ireland to move to a more open and free-market based economy. Although the benefits of the Single Market took some time to become apparent, Ireland now enjoys strong trading links with the rest of the EU.

Between 2003 and early 2007 the Irish economy continued to expand at a steady 3-6% per annum. The drivers of the expansion were primarily construction and consumer spending. Construction in particular experienced phenomenal growth in those years with house prices in parts of Dublin regularly going up by 25% year-on-year. The influx of migrant workers from the EU accession states helped provide a ready workforce for the construction sector.  It also boosted the residential property market as more people needed homes.

Ireland’s wage rates are high and rising quicker than the EU average however migrant workers occupying jobs in the construction and services sector have helped to temper wage growth. Ireland’s overall competitiveness faces other challenges as it updates its infrastructure – particularly in transport and telecommunications.

The Irish economy has now entered a new phase of development and structural change. The shift from dependence on growth in the manufacturing/construction sector to growth in business and financial services as the driver of the economy presents policy challenges for industrial, research and development and human capital.

HISTORY

BBC Timeline of Ireland

 

INTERNATIONAL RELATIONS

Ireland's Relations with the International Community

Ireland is a committed member of the EU and has participated actively in its evolution since joining in 1973 

Ireland is also an active member of the United Nations where it lends its support to the Millennium Development Goals.  Since 1958, the Irish Defence Force have had a continuous presence on UN peace support operations, mainly in the Middle East.  Irish forces currently participate in several UN peacekeeping missions notably in Kosovo and Africa.

Close links are maintained with the USA where there is a significant Irish American population. Ireland’s diaspora spreads all over the world and the country has close ties with Canada, Australia and New Zealand. Ireland has diplomatic relations with more than 100 countries, with 70 Irish Embassies, Consulates-General and Permanent Representatives throughout the world.

Irish Aid

Ireland administers a significant overseas aid programme through a variety of forums and has pledged itself to meet the UN target of 0.7% of GDP spent on aid by 2012.

Irish Aid is the Government's Official Development Co-operation programme. It provides long-term and emergency support to developing countries to alleviate poverty and strengthen their capacity to help themselves. Funding is directed through programmes and projects in targeted countries, or through multilateral aid agencies.

In recent years Irish Aid has contributed to a number of new areas such as work to combat drugs and AIDS as well as increasing contributions to projects run by organisations such as UNICEF, UNHCR, UNDP and UNFPA.

Ireland's relations with the UK

The bilateral relationship with Ireland has never been stronger with frequent contact between Ministers and officials. We co-operate on a wide range of political and economic topics (see www.britishembassyinireland.fco.gov.uk).  The British Council also has an office in Dublin to coordinate cultural and learning opportunities (www.britishcouncil.org/ireland).

Parliamentary Links

The British Irish Parliamentary Assembly (BIPA) brings together representatives from the British and Irish Parliaments and the UK devolved Parliaments and assemblies. The Irish chair is Niall Blaney TD. The British chair is currently vacant. See www.biipb.org for more details.The British Irish Association

Recent Visits

The continuing closeness in relations has been marked by a series of high-level visits.

• Minister for Europe, Caroline Flint in November 08
• The Foreign Secretary, David Miliband in September 08
• The Lord Mayor visited Ireland and Northern Ireland in May 2008
• The Secretary of State for Northern Ireland is a frequent visitor to Ireland.

 
There have also been a number of recent successful Royal visits to Ireland:

• In April 2008, HRH The Duke of Gloucester visited. 
•  The Princess Royal attended a charity engagement with The Wooden Spoon Society and Riding for the Disabled Ireland in February 2008.
• The Duke of York visited in February 2007.
  

British Council: Ireland

GEOGRAPHY

The island of Ireland lies to the west of Britain across the Irish Sea, with crossing points ranging in distance from 17.6 to 192 km (11 to 120 miles). Northern Ireland, part of the United Kingdom, covers an area of 13,967sq. km (5,456 sq. miles) in the North East of the island. Ireland is the only country sharing a land border with the UK.

Ireland is divided into 4 provinces and 26 counties. Agricultural lowlands form most of the interior, which is broken in places with low hills and includes considerable areas of bog and numerous lakes. There are coastal mountains to the west, rising to over 1,000m in places. Nearly a third of the population live in Dublin. Other major cities include Cork, Galway and Limerick.

TRADE AND INVESTMENT

Trade

The trade and investment links between the two countries are very strong.  Two way trade in goods and services amounted to more than £40 billion in 2007 (the latest year for which service figures are available).

Despite having a population of only 4.2 million, Ireland remains the UK's fourth largest export market.   Exports of goods in 2008 totalled £19 million, an increase of 7% on the previous year.  It is the only major international market where the UK is the foremost supplier and the UK's largest export market for food and drink.  UK imports of Irish goods increased by almost 10% last year to £12.4 million, making Ireland the 9th largest source of UK imports of goods in 2008.

Foreign Direct Investment

Ireland is the fifth most popular destination for British firms investing overseas, receiving UK investment flows of more than £4.2 billion in 2007. At the end of 2007 the UK investment stock in Ireland was £25.8 billon.

Total Irish investment stock in the UK amounted to over £7.9 billion, although the flow of investment from Ireland into the UK fell sharply in 2007, to £185 million (down from £816 million the previous year).

Link to UK Trade and Investment Country Profile:  Ireland https://www.uktradeinvest.gov.uk/ukti/appmanager/ukti/countries?_nfls=false&_nfpb=true&_pageLabel=CountryType1&navigationPageId=/ireland

POLITICS

Recent Political Developments

Finance Minister, Brian Lenihan, delivered a Supplementary Budget on 7 April to address the rapidly widening budget deficit. He set out six steps to restore and renew the Irish economy: stabilising the public finances; restoring the banking system; regaining competitiveness; protecting jobs; stimulating economic confidence; and restoring Ireland’s financial reputation abroad and the damage done by the ‘No’ to the Lisbon Treaty.

European Parliament (EP) elections and Local Government elections took place on 5 June 2009.

The EP results were (compared with the 2004):

FG - 4 seats (down 1)  
FF - 3 seats (down 1)
Lab - 3 seats (up 2)
Greens - 0 seats (0)
Sinn Fein - 0 seats (down 1)
Others/Ind - 2 seats (no change)

(Ireland's EP seats were reduced from 13 to 12).

The Local Election results were (compared with 2004):  

FG - 338 seats (up 45)
FF - 213 seats (down 89)
Lab - 116 seats (up 15)
Greens - 3 seats (down 15)
SF - 53 seats (down 1)
Others/Ind - 134 seats (up 19)

Two by-elections were also held on 5 June following the death of two TDs.  FG won in Dublin South (previously held by FF) and an independent left-wing candidate took Dublin Central (no change).  

The government's majority is now reduced from 13 (at the 2007 general election) to 6 (following the by-election results and some defections to the opposition benches).  

ELECTIONS

Presidential elections are due in 2011.  The next General Election is due in 2012, or before if the Taoiseach asks the President to dissolve parliament.

Social Partnership

A significant part of Ireland's recent economic success has been attributed to the “Social Partnership” – a formalised dialogue between the state, employers, unions and civil society actors. This dialogue produces periodic binding agreements that cover minimum standards in pay, employment conditions, social welfare provision and specific parts of infrastructural development. In June 2006, a new partnership agreement (binding for 27 months) entitled “Towards 2016” was announced.

Ireland and the EU

Ireland joined the European Economic Community, which was later renamed the European Union, in 1973, along with the UK and Denmark. EU membership is the central framework within which the Irish Government pursues its foreign policy objectives. There are 13 Irish Members of the European Parliament (MEPs). Irish is an Official and Working Language of the European Union.

Ireland has held the six-month Presidency of the Council of the European Union on six occasions. Its most recent Presidency was in 2004, when it oversaw the enlargement that saw ten Member States join the EU.

Ireland's membership of the EU has impacted on its social and economic landscape.  One of the more recent effects has been the influx of migrant workers from the newer Member states. An estimated 200,000 people have since moved to Ireland since June 2004 making it one of the largest recipients (per capita) of migrant labour in the EU.

The Treaty of Lisbon was signed on 13 December 2007 at a summit of European leaders in Lisbon. The purpose of the Lisbon Treaty is to enhance the efficiency and democratic legitimacy of the Union and to improve its coherence. Each of the 27 Member States must ratify the treaty according to its own national provisions. For Ireland, ratification of the Lisbon Treaty, as with a number of previous EU treaties, requires the Irish Constitution to be amended. Each time the Irish Government proposes to change or amend the Constitution, it must hold a referendum. 

Ireland held a referendum on the Treaty of Lisbon on 12 June 2008. The treaty was rejected in the referendum, with 53.4% voting “No” and 46.6% “Yes”. Turnout was 53.1%. The Irish Government has announced its intention to develop a fuller understanding of the concerns that affected the outcome of the referendum as a necessary step before deciding how best to respond.

Northern Ireland 

There is regular contact with the Irish Government through the North South Ministerial Council, which brings together Irish Ministers and Ministers from the Northern Ireland Executive (www.northsouthministerialcouncil.org) and through the British Irish Council (www.british-irishcouncil.org), which brings together British and Irish Ministers and their counterparts from Scotland, Wales, Northern Ireland, the Isle of Man and the Channel Islands.
For more information on NI devolved matters please go to www.niassembly.gov.uk.   Non-devolved issues are covered at www.nio.gov.uk.

HUMAN RIGHTS

Ireland has ratified the core UN human rights treaties and a wide range of other international human rights instruments. In 2007 Ireland signed five new international treaties, the United Nations Convention on the Rights of All Persons with Disabilities, the United Nations Convention on the Protection of All Persons from Enforced Disappearance, the United Nations Optional Protocol to the Convention Against Torture, and other Cruel, Inhuman or Degrading Treatment or Punishment, the Council of Europe Convention on Action Against Trafficking in Human Beings and the Council of Europe Convention on the Protection of Children Against Sexual Exploitation and Sexual Abuse.

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Travel Advice

Travel advice: Ireland 

Newspapers

The Irish Times

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See Also

Useful Links

• BBC Timeline of Ireland
• British Irish Inter Parliamentary Body
• Irish Government website
• Irish EU Presidency website
• Northern Ireland Office 
• UK Trade & Investment Country Profile: Ireland
•  

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