What does the Lisbon Treaty mean for Irish Businesses?

The much debated and publicised Lisbon Referendum was ratified on the 2nd of October 2009 with a resounding “yes” vote of 67.1%. This result has concluded one of the most controversial and debated referendums in recent history. Several high profile institutions and organisations campaigned vigorously for a “yes” vote which included the following:

 The American Chamber of Commerce
 The Irish Business Employers Confederation (IBEC)
 The Irish Exporters Association
 Chambers Ireland
 Ryanairs Michael O Leary
 Bord Gais Chief Executive John Mullins
 Various Multinational Organisations such as Intel, Microsoft and Pfizer

It is clear that from the above number of institutions, organisations and individuals, not to mention the various political parties that campaigned for such a vote, that the Lisbon treaty was of great importance.

The effect of joining the European Union for Irish business has been enormous and it can be displayed by the following results:

 It has changed the Irish trade pattern from one where most of what we sold went to the United Kingdom to one where our biggest customers are the 27 European Union member states with a combined population of 486 million people.
 The level of Irish exports has increased considerably since we joined the European Union and Ireland boosts one of the world’s best performance records in attracting Foreign Direct Investment (FDI).
 There are 994 foreign organisations operating in Ireland providing almost 140,000 jobs.
 In terms of US organisations based here in Ireland, Irelands membership of the European Union underpins more than 300,000 jobs, over 100,000 directly and 200,000 in sub supply and related industry and services.
 US experts state that EU membership has been instrumental in important investment decisions.
 The EU has removed import tariffs and border checks have allowed Irish companies to operate all across Europe.

As a result of the yes vote, the Lisbon Treaty shall be benefit Irish business in the following ways:

 The Lisbon Treaty aims to eliminate many of the remaining restrictions regarding cross border trade and the Treaty also refers to “free and undistorted competition” through a protocol to the treaties. This means competition policy will be a key tool in the successful implementation of the internal market.

 The Lisbon Treaty also aims to remove restrictions on organisations competing in global markets. This will be of considerable benefit to Irish companies exporting to the United States, Asia and other non European Union regions.

 The Lisbon Treaty proposes new principals to direct the European Unions action on international markets, which provides for the European Union international relations to “encourage the integration of all countries in to the world economy, including the progressive abolition of restrictions on international trade”

 Business needs the Lisbon Treaty for Ireland to move confidently into the future. It is of great importance to the Irish economy that foreign organisations invest in their operations within the country to support and create employment.

 The Irish approval of the Lisbon Treaty shall protect ten of billions invested into the country by organisations from the United States. (Last year, United States based organisations invested almost $ 150 billion into Ireland).

 The Irish approval of the Lisbon Treaty has the potential to save Ireland € 200 million a year in debt costs.

 The Lisbon Treaty emphasises the European Unions continued support for EU trademarks and designs, making sure the ideas of entrepreneurs and inventors are protected and promoted.

 The Lisbon treaty ensures a level playing field by enforcing state aid rules.

Further specific provisions in the Lisbon Treaty of direct and practical benefit to Irish businesses include the following:

 Research and Development: Article 179 of the Treaty states that creating a European “research area” will be a priority for the European Union. This is excellent news for organisations and third-level institutions where high tech research and innovation create employment.

 Tourism: Article 195 makes enhancing the tourism sector and improving competitiveness in this area, a priority for the European Union.

 Rural Areas: The Lisbon Treaty reaffirms the European Unions commitment to its regional policy and closing the development gap between affluent and less well off regions. In practice, this might mean investment for roads, broadband or childcare businesses, which have already been helped by funding from the European Union.

 Green Energy: Article 194 of the Treaty makes energy a top priority of the European Union. This includes the development of renewable energy. Ireland has enormous potential to further develop wind and wave energy, which requires investment. In addition Ireland requires access to transnational grids and a more secure energy supply. The European Union offers the potential to support Ireland’s energy needs in a number of different ways.

 Transport, Energy and Communications: The Lisbon Treaty states that the European Union will invest in trans-European transport, energy and telecommunications infrastructures.

 

    Email: info@jmccarrick.com

 

 

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