The enlargement of the EU would present Ireland with a strong competitive threat from central and eastern Europe, an economic analyst told the Forum on Europe.
Dr Frank Barry of University College Dublin said probably the most important factor in Ireland's success was the low corporation tax, which was about one-third the EU average. However, candidate countries were learning from Ireland's experience and Estonia now had a zero rate and Hungary a maximum rate of 18 per cent.
Comparing educational systems showed that 64 per cent of Irish people in the 25-34 age-group had a Leaving Cert at least. In the same age group in the Czech Republic, more than 90 per cent had reached an equivalent level or higher and almost 90 per cent in Poland. These countries had cheaper prices and lower wages, contributing to their competitiveness. High-tech US multinationals would be more inclined to invest in these countries once they had joined the EU.
A different view was taken by another UCD academic, Prof Rory O'Donnell, who said most studies suggested that Ireland faced more opportunities than threats from enlargement. The real issue was not the threat from the applicant countries but the huge task they faced if they were to achieve development and prosperity.
Northern Ireland businessman Sir George Quigley said Ireland and Irish business had been able to hold their own in a competitive world. It was vital that the focus on enlargement did not divert attention from unfinished business within the existing EU boundaries.
Danish Euro-sceptic MEP, Mr Jens-Peter Bonde has rejected a claim by the Minister for Foreign Affairs that he was creating confusion in suggesting 10 additional countries could join the EU without ratification of the Nice Treaty. Responding to comments made by Mr Cowen on Wednesday, Mr Bonde said enlargement could go ahead without ratification because it was a basic EU principle. "He threatened the Irish electorate before the referendum; he continues to threaten them after the referendum."