
Now that the celebrations to mark this accession have drawn to a close the real work of integrating 90million people into the Union begins. Each time there is an enlargement of the EU history repeats itself; we are faced with the challenge of integrating new countries, new regions, and new citizens. These challenges are both significant and exciting.
However the enlargement that took place on May 1st will without doubt be recorded in the annals of time as a turning point in the reunification of Europe around the ideals of freedom, democracy and solidarity. It will also give a new dimension to the politics of the Union in the years to come beginning almost immediately with the emotive matter of the constitution.
NEW MEMBER STATES
The ten new EU members are the Republic of Slovenia, the Czech Republic, Poland, Slovak Republic, Estonia, Latvia, Lithuania, Hungary, Cyprus and Malta. The historic significance of the accession of eight former Soviet Block countries into the EU cannot be overlooked; neither can the fact that between them, these ten new regions swell the population of the European Union family by 90 million people.
Each and every one of the new member states looks to Ireland as the epitome of success. We are their role model. The Celtic tiger economy is their inspiration, the open and friendly people of Ireland are their comrades. Like the Irish of twenty years ago, these new European Union members all seek increased productivity and prosperity from their alliance with the existing members of the European Union though most readily admit they don’t envisage their progress to match Ireland’s meteoric rise
Their perception of Ireland is of a people willing to work hard, play hard, and avail of any and all opportunities that arise. Most align themselves historically with Ireland citing our long arduous road to independence. While Ireland has been invaded by the Vikings and the
British, most of our new partners have suffered centuries of occupation from across their borders, invasions that have left their mark on the culture, language and very boundaries of these states.
With the forthcoming referendum on the rights to citizenship in Ireland I asked these countries for their views and interestingly enough, was informed that none of the new member states award automatic rights of citizenship to a child born to non-nationals for the family of that child. Restrictions on citizenship exist in most countries, yet they are not condemned as being racist for doing so. Why then should the Irish be labelled racist for wishing to give back to the Oireachtas powers they had previously?
While an in-depth profile of all ten new member states would take up more square column inches that we have in Portfolio this issue, our cross section analysis will give you our reader an insight into some large and some small countries who have now become our new partners in Europe.
Slovenia
Strategically located between the Alps and the Mediterranean, Slovenia is a destination Irish holiday makers are becoming more and more aware of each year as they tire of the Costa del Sol and seek new horizons.
Its majestic mountains, breathtaking architecture and rich culture make Slovenia a popular destination for Europeans everywhere and as we approach Bloomsday we can delight in the fact that not alone will it be celebrated in style here at home, it will also be celebrated in Slovenia.
The legend goes that on a trip to Italy James Joyce reputedly alighted from his train in Slovenia mistakenly thinking he had arrived in Trieste in Northern Italy. He quickly departed on discovering his mistake and one cannot but think it was one of the writer’s biggest mistakes ever.
Never a race to hold a grudge though, the Slovenians good humouredly erected a plaque in his honour and will be seen on June 16th this year as in previous years celebrating Bloomsday along with the rest of the world. Conversely, Ireland is not high on the list of destinations for holidaymakers from Slovenia. Why? "Because it is so expensive" they say.
Her Excellency, Helena Zorko-Drnovsek, Slovenian Ambassador to Ireland said when asked how her countrymen see links between our two countries developing "Ireland is a role model to us.
Your success as a small nation is inspirational. We already work very closely with business groups such as ISME in Ireland and welcome investment from companies and individuals. Property prices in Slovenia are a lot cheaper than in Ireland and represent excellent investment potential.
Exports from Slovenia to the European Union currently comprise cars, car parts, white goods and pharmaceuticals. Interestingly enough their imports are in the same categories.
Slovenia sees full membership of the European Union as a means to increase its current productivity, a way of opening up new markets and of welcoming new people to Slovenia.
With only 2million of a population they do not want to see mass emigration from within their borders. What they want instead is a steady growth of investors coming to their country and their government ministers are only too ready to talk to companies wishing to take advantage of a highly skilled young work force and generous trading terms.
The tourist industry in Slovenia is expanding rapidly as more and more people discover the attractiveness of this location for ski holidays in winter and beach holidays in summer. From the snow capped Alps to the warmth of the Adriatic coast Slovenia has a wealth of holiday options to offer and with both Crystal holidays and Topflight taking Irish people to these destinations Slovenia is sure to figure more prominently on the agenda for Irish holiday makers in the future.
Poland
Bordered by Northern Italy, Austria and Croatia, Poland is the largest country to come into the fold bringing with it a population of 40million people. These new family members now look to Europe for enhanced prosperity and growth, not just within their own country but in the global markets they will now have access to as part of a larger, stronger and more influential Europe. The poles are a well educated, highly competent nation whose hunger for prosperity matches our own. Their investment in education is admirable, the Polish government recognize the importance of a highly educated population and their dedication not only to quantity but to quality in education is a factor that that will cost countries like Ireland dearly in the new enlarged and more competitive EU in years to come if we don’t match it.
Currently Poland experiences a significant business connection with Ireland, a number of companies opting to set up shop in a country where there is no shortage of skilled workers, where operating costs are cheaper and production is higher. Assisting Irish companies in their search for the perfect Polish partner is AIB whose commercial section works hand in hand with the Polish embassy in Dublin.
From May 26th 2004 there will be direct flights from Dublin to Warsaw twice daily, again geared towards the business person who wants to fly to Poland, complete their business transactions and be home in Ireland the same night. Already around 1billion Euros is invested in Poland by Irish companies, an investment that has created around 12,000 jobs.
"Poland now is similar to Ireland of twenty years ago" Isabella Grabowska Press Secretary at the Polish Embassy in Dublin said, a sentiment reiterated by His Excellency Witold Sobkow, Ambassador to Ireland when he expressed his delight that Poland, along with nine other European countries would be welcomed into the fold during Ireland’s presidency of the EU. The Polish people want to emanate Ireland’s successful record but admit it will not be easy.
We have a lot of common ties with our Polish friends as Norman Davies the well known historian said. "There are four main similarities between the Poles and the Irish" he said:
(1) neither country has ever been part of the Roman Empire, a fact; he says that has allowed retention for much longer of our ancient autochthonous culture.
(2) Both countries became Christian states with allegiance to the Catholic Church in Rome and the linking of religion with national identity.
(3) Due to slow economic progress both countries have suffered mass emigration to America and finally, both Poland and Ireland have a long and bitter history of invasion and conquest finally regaining independence.
Polish heroes such as Tadeusz Kosciuszko reputedly inspired Theobald Wolfe Tone while national Irish leaders like Daniel O’Connell lent support to the Polish uprising of 1830. Polish writers and poets have always proved inspirational to their nation’s causes contributing in no small part to the hunger for independence beginning with Adam Mickiewicz and Thomas Moore and continuing to Stanislaw Wyspianski and Patrick Pearse.
Irish pubs, St Patrick’s Day and the Irish craic, the Polish people have taken to these like the proverbial duck to water.
Now with full membership of the European Union Poland looks forward to a brighter more stable economy and a more prosperous future. They recognize they have a long way to go yet but make no mistake about it, they are determined to get there as quickly as possible. Immediately they are targeting the lucrative markets of manufacturing bringing a range of top quality goods such as lace, amber, silver and crystal to challenge the products of such well known names as Waterford Wedgewood, Newbridge and Belleek.
Like Ireland Poland has a successful brewing culture, not yet as powerful as our own Guinness but by all accounts still a major industry in the country. Like Ireland of twenty years ago Poland today is heavily dependent on agriculture exporting berries and apples to Europe already by the ton. These are the areas of immediate focus for expansion but once secure the Poles intend making headway in the global world of eCommerce, IT and communications.
Already many companies have found the perfect business partner in Poland, now with their full membership status no doubt many previous obstacles to investment will be removed and Poland looks forward to welcoming still more business investment in the near future.
Czech Republic
Situated in central Europe with an area of 78, 864 sq kilometres the Czech Republic has a population of 10.3 million people and includes the three historical lands of Bohemia, Moravia and part of Silesia. Its geographical position has led to a turbulent history resulting in a wide diverse tapestry of cultures all of which has combined to forge the characteristics of the people and the society as a whole. Only after the velvet revolution of 1989 did Czechoslovakia cease to be a Communist state. This paved the way for the split with Slovakia in 1993 and the birth of what we now know as the Czech Republic.
Here is a country which welcomes investors with open arms, and the Irish have been quick to spot the advantages of operating from such a strategic location. The Czech Republic forms a gateway to Eastern Europe and an ideal starting point for servicing their customers in Germany and Austria.
Trade between Ireland and the Czech Republic had increased by a staggering 200% in the past five years, ing point for servicing their customers in Germany and Austria.
Trade between Ireland and the Czech Republic had increased by a staggering 200% in the past five years, a trend set to continue and increase with the full member status of the country now. According to a recent survey carried out jointly by Pricewaterhouse-Coopers and Czechinvest, the government agency for foreign investment, the Czech Republic is the first choice for investors into central Europe. Why? Because of its strategic location coupled with low manufacturing costs. Czechinvest have cleverly put in place an industrial zone development scheme that aims to create optimum conditions for investors in the sectors of research and development, manufacturing and services. The scheme runs until of 2006 and with the availability of subsidies and grants for job creation has attracted numerous companies into areas formerly rife with unemployment.
Already companies such as Toyota Peugeot Citroen have attracted world interest with an investment of 1.5 billion in a new state-of- the- art car plant at Kolin. Capable of producing a staggering 300,000 cars annually from 2005, it underlines the new ever growing trend of companies seeking a higher output with maximum profit margins. Irish investors currently include Arantronics, Barlo, C&F Tooling, Kingspan, Maurice Ward, Largo Foods-Perri Crisps, Silicon Systems and Software, the list goes on and on.
The Czech Republic means business, big business and now that they have turned their attention to the IT and Communications markets, countries such as Ireland are set to have to fight for their previously uncontested position as a leader in these fields.
This trade link is a two way street, companies in the Czech Republic discovering now the lucrative Irish market for their goods and the added value of our close proximity to UK and US markets.
In the field of tourism, mention the Czech Republic and immediately Prague, the city of spires springs to mind. In relation to tourism Prague rates among the top ten cities Irish people aspire to visit at least once in a lifetime. Its beauty is unsurpassable and with Irish pubs popping up one can only hope the true Czech culture and climate will not get swallowed up in an avalanche of shamrocks and pints of Guinness.
No longer is Prague a hidden jewel, unfortunately, still it remains as unique as Dublin or Venice, different, cultured, and always inspirational. Conferences are big business, whether at home here in Ireland or in Prague in the Czech Republic and with a two hour flight time from Dublin Irish companies are increasingly taking their executives on a junket to Prague while availing of the city’s burgeoning conference business facilities.
When it comes to the Czech people themselves their view of Ireland and its people is one of a nation whose meteoric rise is to be admired.
"The Irish are a tough people" says Josef Havlas the Czech Ambassador to Ireland. "They are always looking for the optimum solution" Our ability to change day by day is a quality the Czech’s admire, as is our willingness to help other nations achieve what we have. It appears we are the measure by which they gauge their success while acknowledging that though similarities exist between our two cultures there are still some areas we do not see eye to eye on.
The Czech’s are a combination of Slav and Celtic tribes and yes, it is a culture that has been influenced in the past by Ireland, an influence that dates back to 1629. It was in this year that the Franciscan monks, driven by Elizabeth 1st out of Ireland, took refuge in Prague. They stayed for 150 years at the Irish college they founded in Prague the site of which is still marked by a street commemorating their existence there, a street called Hiberniska taken from the name that was given the monks at the time the ‘Hiberni’.
We have a lot in common with the Czech people and if the trend of Irish business to seek partners abroad continues to spiral upwards spiral, it looks like we will have a lot more in common in the future.
Estonia
Not quite cold enough for Polar Bears, Estonia on the Baltic Sea is at the same latitude in Europe as Central Sweden, the Northern tip of Scotland and is only a ferry ride away from Helsinki. The country stretches 350km from east to west and 24okm from north to south and while Estonia is a rich and fertile land, it has a population of only around 1.5 million people.
Its capital city Tallinn with its medieval walls, turrets, spires and cobblestone streets is no doubt one of the most picturesque sights in the whole Baltic area. Parnu with its beautiful beach is the summer capital of Estonia and Tartu its University.
Estonian’s are not given to public demonstrations of affection; in fact they are not given to public demonstrations of emotions at all. Rather stoic by nature even their fairy tales rely more on the hero outwitting his enemy by virtue of his superior intelligence or quick witted actions than by hail fire and brimstone. They have an off beat sense of humour rather like the Irish and enter the new enlarged EU with the same reservation they apply to any situation, wait and see.
This reticence to rush headlong into any situation should not be misconstrued as laziness or an inability to compete in the fast paced world of technology we exist in today, far from it. Estonia brings to Europe a highly trained and intelligent work force and cities such as Tallinn offer a host of benefits to foreign investors.
A member of the world trade organization since 1999 Estonia and its capital city Tallinn in particular have focused their attention on attracting business in the fields of logistics and transit, tourism, IT and allied fields offering niche market potential and a proven track record.
Tallin is a prime junction for international traffic, a crossroads between technologically rich Scandinavia and resource rich Russia.
Due to large investments in the country’s infrastructure and flexible customs procedures Tallinn’s Port of Muuga has seen a considerable upturn in business going through it. Adding to Estonia’s attraction as a corridor to Europe is the taxation system, 0% corporate income, 18% VAT and a personal income tax rate of 26%. Virtually no tariffs exist and establishing a company is easy and straight-forward, foreign companies enjoy equal rights with local ones.
An IT driven city, foreign companies can set up shop in Tallinn secure in the knowledge they have a hard working educated and technologically advanced work force at their fingertips. Low corporate and other taxes definitely provide an incentive and as undistributed profits (re-invested or not) are virtually tax-exempt what company can resist this added lure to maximise their profits?
These are not the poor relation of Europe their GDP outstrips both the EU and US average. With the exception of Slovenia, Estonia has achieved the most progress of all Central Eastern European countries. Again here the government has realized its greatest asset is its people, and an educated highly skilled young generation are already reaping the rewards of massive investment in education. The Tallinn Technical Institute and the Cybernetics Institute of Tallinn have already secured a strong foothold in the highly competitive world of integrated circuits, radar systems and satellite communications.