2008
Euro-zone Expansion – needs higher priority
The Irish Exporters Association (IEA) today 8 January 2008 welcomed the adoption of the euro by Malta and Cyprus this month.
However, the IEA pointed out that these countries are the smallest of the EU, with populations of 778,000 in Cyprus which contributes 0.17% to the euro area GDP and Malta, with 407,000 people, contributing 0.06% to the euro area GDP.
Irish exports to Cyprus and Malta in 2006 amounted to €29 million and €13 million respectively.
What about the other 12 EU countries?
John Whelan, CEO of the Irish Exporters Association stated “if we are to get the full trading benefits of EU integration, greater pressure needs to be put on the remaining member states to come up with a plan to meet the criteria for euro adoption.”
He went on to say “Commissioner McCreevy and Irish MEPs must put the expansion of the euro-zone firmly onto their agenda for 2008.”
He further stated “Ireland entered the EU with the anticipation of lower trading risk, particularly exchange rate risk and cross-border trade opportunities (amongst other benefits).”
“The fact that our largest trading partner, the UK, has not adopted the euro continues to be a major cause of concern for Irish exporters.”
As of January 2008, of the 12 EU countries that have not adopted the euro, 10 countries do not meet the conditions for euro-zone entry. They are Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland and Slovakia (of the group that joined the EU in 2004), Bulgaria and Romania, who became members in 2007, and Sweden.
The UK and Denmark have negotiated protocols to stay out of the euro-zone for the time being.
John Whelan stated “Slovakia is the only non-euro-zone country currently focusing its efforts on adopting the euro with a stated target date of January 2009.”
End.
For further information, please contact:
John F. Whelan, Chief Executive, Irish Exporters Association
Mobile: 087 927 1243
Email: jfwhelan@irishexporters.ie
About the Irish Exporters Association (IEA)
The IEA represents the needs of export industry ensuring that
the necessary conditions are created and the necessary support is provided to assist companies to maximise their export sales. The IEA draws its membership from every exporting sector, ensuring that the interests of all industries are represented and
promoted at the highest level.
www.irishexporters.ie
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