The growth of the Irish economy in recent years has been one of the great EU success stories. Between 1994 and 1997 the economy grew at an average of more than 7 per cent a year, a rate comparable to East Asia (in better times). In 1987 Irish incomes were just 63 per cent of the levels in the UK: they are now equal to or have surpassed British levels.
Ireland, which was one of Europe's poorest countries, is now by some counts, as prosperous as the EU average. The public debt now stands at about 60 per cent, which at 120 per cent was the second highest in Europe in 1987. Ireland's GDP per head exceeded Britain's for the first time in 1996, although because of the high number of foreign-owned firms the GNP figure is some 12 per cent lower. Progress was maintained in 1997 with Ireland experiencing the EU's highest growth in GDP at 8.3 per cent.
Finally, inflation averaged 2.5 per cent between 1989 and 1993 compared to an EU average of 4.75 per cent.
These are impressive figures by any standards. However, debate often centres on the extent to which this progress is a result of the generous sums that Ireland has received from the Structural Funds. It is clear that there are a number of reasons for Ireland's success. These include a consistent economic policy since around 1960, which led to an opening up of the economy and resulted in an average growth rate of 4 per cent since that year (with the exception of the 1980-1985 period); access to the EU market; a highly educated workforce; a fast-rising rate of economic participation; and the country's appeal to foreign investors attracted by a 10 per cent tax rate for profits in manufacturing and internationally traded services.
A further consideration is that, in the 1990s, funding from both the Common Agricultural Policy and the Structural Funds to Ireland has reduced. Moreover, other countries, which have received equally generous assistance, have enjoyed nothing like the growth experienced by Ireland.
It is indisputable, however, that money from Brussels has helped, and has enhanced the annual growth rate by up to one percentage point a year for much of the period since Ireland joined the EU. The Mid-Term Review of the Structural Funds for the 1994-97 period shows that, by the end of 1996, Ecu 2.4 billion, or 41 per cent of the EU allocation of Ecu 5.7 billion for the whole period had been spent.