The enlargement of the European Union, which the Nice Treaty makes possible, will bring tangible economic benefits. Already, at least 140,000 people in Ireland have jobs directly as a result of foreign investment here. Many more spin-off jobs result. These jobs would simply not exist if we were not fully part of the European single market.
I am convinced that the expansion of the EU market to more than 500 million people will offer great opportunities for more and better jobs in Ireland and in the other member-states.
Enlargement will clearly affect the context of Ireland's trade and investment. We have an open economy, and we can adapt quickly to exploit new European and global market opportunities.
In relation to trade, the successive expansions of the European single market have brought new opportunities to our companies. Our exports to the EU accounted for more than 60 per cent of our total exports last year, reaching more than £40 billion (#50.8 million). Add the 12 applicant countries, and the potential for growth is very appealing. Of course, the applicant countries represent quite varied markets. Their populations range from less than one million in the cases of each of Malta and Cyprus to 38 million in Poland. We recognise that, as yet, most have income per capita significantly below the EU average and their programmes of economic reform in advance of EU accession have some way to go.
Nonetheless, the benefits to Ireland of gaining full and free access to these markets will be very significant. We are building a good base already. Our exports to the 10 central and eastern European applicant states have risen enormously since the fall of the Berlin Wall.
Between 1994 and 2000, these exports climbed from only £162 million to £986 million. There is great potential for further export growth. Poland, Hungary, the Czech Republic, Estonia and Slovenia between them account for the vast majority of our exports to the region - almost £781 million out of last year's total.
This can be seen as the positive effect of the economic reform programmes being implemented in advance of EU accession.
All accession states are now fully engaged in and committed to these agreed economic reform programmes. These reforms will build the economic structures and income levels which will enhance the attractiveness of the accession countries as markets for businesses in Ireland.
The Government is working to ensure that businesses in Ireland are in a position to take full advantage of the opportunities offered. The level of political exchanges and trade missions has increased significantly over recent years. This year, there will be at least three separate trade missions to the accession countries. We have to continue our engagement with the accession states to build strong trading and political relationships.
In many areas, these trading relationships are the result of strong foreign investment in Ireland. EU enlargement will make Ireland a more attractive location for global companies, so long as Ireland remains a competitive base for business.
Ireland's share of foreign manufacturing investment into Europe, currently 12 per cent, is tremendous. Eastern Europe as a whole has an overall share of about 25 per cent. But we must continually adjust to trends in the world around us to compete effectively.
Several of the Eastern European countries in the front line to join - e.g. Hungary, Poland, and the Czech Republic - are achieving growing levels of foreign direct investment coming into Europe. A lot of this investment in Eastern Europe is in heavy industries and consumer products, areas where Ireland has not focused.
In internationally traded services, by contrast, Ireland currently receives a large amount of investment and has a strong market position.
Maintaining Ireland's share of future investment not only means maintaining a strong marketing effort. We must also continue to strive to put ourselves in a position to move further up the value chain into higher value-added products and services.
We also need to maintain rapid progress on improving the competitiveness and efficiency of the economy generally. We must perform, in the public as well as private sectors. That means implementing the National Development Plan on time. We must build infrastructure in the regions, and use solutions like public private partnerships to achieve fast delivery of projects. We must continually ensure we have sufficient people with sufficient skills. In short, we have to work hard, open up to new solutions, and avoid complacency.
The enlargement of the European Union is an opportunity, not a threat. If we remain forward-looking and ambitious, as I believe we must, then EU enlargement will be an impetus for us to get things right in our own economy and to secure jobs and prosperity going forward.
The Treaty of Nice opens the door, not alone for new member-states, but for us too.
