Good for the Irish - New EU Role Model

Politics International Politics
1

The EU would do well to look closely at the business model followed by the Celtic Tiger.

[quote]The Irish on offense
The New York Times (from the IHT), Thomas L. Friedman, SATURDAY, JULY 2, 2005
DUBLIN There is a huge debate roiling in Europe today over which economic model to follow: the Franco-German shorter-workweek-six-weeks’-vacation-never-fire-anyone-but-high-unemplo yment social model or the less protected but more innovative, high-employment Anglo-Saxon model preferred by Britain, Ireland and Eastern Europe. It is obvious to me that the Irish-British model is the way of the future, and the only question is when Germany and France will face reality: Either they become Ireland, or they become museums. That is their real choice over the next few years - it’s either the leprechaun way or the Louvre.
-snip-
Given that Ireland received more foreign direct investment from the United States in 2003 than did China, the Germans and French may want to take a few tips from the Celtic Tiger. One of the first reforms Ireland instituted was to make it easier to fire people, without having to pay years of severance. Sounds brutal, I know. But the easier it is to fire people, the more willing companies are to hire people.(Read the Article…)
iht.com/articles/2005/07/01/ … dfried.php[/quote]

2

Very good point you bring up TC. Ireland certainly seems to be leading the way.

The recent EU vote in France, however, is not an encouraging sign. Oh well. If you grow up believing that short work weeks and constant government interference in the labor market is normal – I can certainly see how one would be loath to give up such a pleasant fantasy. I suspect that the old ways of thinking will persist for some time still in Europe. I’m optimistic that the truth of the situation will sink in eventually though. :thumbsup:

3

For a muddled constitution? I’d say it’s very encouraging. Why does the EU need a constitution again? I can’t remember.

The truth has probably already sunk in, but Germany and in particular, France, are too stubborn to admit that they are wrong.
However at present, the EU seems to be a gentlemans club for the bureaucrats of the respective member countries (states?). It doesn’t function as a collection of countries working towards a common goal and it wastes gallons of cash of which could be spent on other things.
The constitution needs to be binned. The EU can still function as individual countries with clearly defined borders perfectly well. The need be no tax harmonisation, blanket trading or criminal laws, no common defence policy and no single currency.

Let us not forget that the leaders of France and Britain can’t stand the sight of each other, Germany is falling apart at the seems, Spain couldn’t care less, Italy has its own agenda and there is a bunch of other anonymous countries whose collective leaders couldn’t influence the waves in a bathtub.

4

Ireland went for full employment at low wages about 20 years ago, and a lot of people thought it was dreadful (the low wages). Now wages are pretty high and everyone’s got a Beamer. Is it sustainable? Who knows?

The Irish “invented” Special Economic Zones you know. Shenzhen was copied from Shannon. Obviously worked a lot better in China, though…

5

[quote=“21p”]Ireland went for full employment at low wages about 20 years ago, and a lot of people thought it was dreadful (the low wages). Now wages are pretty high and everyone’s got a Beamer. Is it sustainable? Who knows?

The Irish “invented” Special Economic Zones you know. Shenzhen was copied from Shannon. Obviously worked a lot better in China, though…[/quote]

I believe the unemployment rate in Ireland twenty years ago was over 17%

econstats.com/weo/C078V029.htm

Shannon was not that much of a draw. The MNCs set up in other locations:
Intel in Kildare, Dell in Limerick, IBM in Dublin

Not everyone has got a Beamer. And not everyone is rich.

Inflation is a problem, cost of living is high, and house prices are so expensive that people can’t buy, so they spend money on rent, meaning they never can get enough money for the downpayment not to mention the payments on the mortgage costs.

But at the same time, I think people have something that they did not have in the 80’s - HOPE

I remember in the 80’s, the constant flow of people from the country, U2 being Ireland’s biggest export, half of our neighbors being unemployed, people standing on street corners with nothing to do, all these grants from the ERDF to build roads (thanks EU) but nothing to go on these roads, employment schemes that were only there to give people something to do. Everything was drab and sad.

When Ireland did blossom it blossomed on the backs of US companies. The government gave all types of grants and incentives to MNCs to come in. A couple of big US MNCs came in and this drew alot more companies in. Ireland pushed education, MNCs funded universities to spit out educated people perfect for these MNCs (Computer Science, Electronic Engineering, IT). We spoke English and were willing to work cheaper, and gave these MNCs access to the EU( it was the EEC then).

Now things have changed. We don’t make stuff anymore. We are in the services industry. I guess the honeymoon is over. Well maybe it is, but if the government keeps on the offensive, we can still stay on track.

So screw the EU constitution, let the French and Germans work their 35 hour week, and lets just treat the EU as a common market. Ireland then can hammer away on its own steam without our EU countrymen

PS I do not plan to go back to Ireland for a while. Its just too expensive

6

[quote=“TNT”][quote=“21p”]Ireland went for full employment at low wages about 20 years ago, and a lot of people thought it was dreadful (the low wages). Now wages are pretty high and everyone’s got a Beamer. Is it sustainable? Who knows?

The Irish “invented” Special Economic Zones you know. Shenzhen was copied from Shannon. Obviously worked a lot better in China, though…[/quote]

I believe the unemployment rate in Ireland twenty years ago was over 17%[/quote]

Yeah that’s what I mean. Also kept down to 17% by emigration. Real rate was probably much higher.

I met Garret Fitzgerald once. He didn’t recognise me at all.