Europeanisation and new patterns of governance in Ireland

Nicholas Rees, Bríd Quinn, Bernadette Connaughton

• Publisher: Manchester University Press
• Year: 2013
• ISBN:
  9781847796912
• Edition: 1
• Topic: Philosophy
• Subtopic: Ethics & Moral Philosophy

This book examines the impact of Europeanisation on Ireland and questions the validity of the common assumption that Europeanisation was the cause of Ireland's dramatic political and economical transformation.

1

Ireland and the European Union

Nicholas Rees, Bríd Quinn and Bernadette Connaughton

Introduction: examining Europeanisation in Ireland

Politicians, diplomats and policy-makers consider Ireland’s economic and political development as an unparalleled success story with the state long ranked as one of the top performing economies in Europe. It was only in late 2007 that Ireland’s economic growth faltered in the light of escalating oil prices, a downturn in global markets and a drop-off in domestic consumption and production. However, its performance over almost two decades has been remarkable even when measured against large economies such as Germany and France. It has also outstripped the performance of other cohesion states, such as Portugal, Spain and Greece and is considered an example to be emulated among new EU member states, as evidenced by the many parliamentary, economic and political officials who have visited Ireland.

Ireland moved from being amongst the poorest members in 1973 to one of the richest EU member states by 2006. More recently, Ireland’s place in Europe is being redefined in the light of the global economic turmoil which witnessed oil prices doubling in the year up to April 2008. This creates not only domestic pressures but creates a paradox for Irish policy-makers as they seek to maintain Ireland’s economic position, while remaining supportive of those new member states which have yet to climb out of relative poverty (Holmes, 2005). Irish diplomats have been past masters at reconciling such contradictions and have usually found pragmatic ‘Irish’ solutions to ‘Irish’ problems (Laffan and Tannam, 1998; Laffan, 2006). What is less well understood is that Ireland’s early experience with EU membership was problematic on a range of economic, social and political fronts. Ireland was not an instant success story following membership in the 1970s, while the 1980s were characterised by a period of economic stagnation, with high unemployment and little economic growth. Ireland was literally the poor relation during this period and it is only since the mid-1990s that the state has made significant economic progress.

Ireland’s economic and political relationship with Europe has been changing, particularly because of its changed economic circumstances. It is not that Ireland has become increasingly anti-European; rather, the Irish public are not convinced that a further deepening of European integration will be beneficial to Ireland and are distant from EU developments. Furthermore, as the outcome of the first Nice referendum in 2001 and the lead-up to and outcome of the referendum on the Lisbon Treaty in June 2008 highlighted, many among the Irish public had little knowledge about the treaty, despite all the media coverage and the various party campaigns, and were fearful that they might be voting for something that might adversely affect them. Ireland is by no means atypical in this sense, as successive Eurobarometer surveys suggest that such trends are evident throughout Europe. Public apathy and evidence of antipathy towards further European integration is apparent even in the new member states, while the French and Dutch publics’ rejection of the Constitutional Treaty in 2005 indicates disquiet in older EU member states. In many countries, citizens are more interested in seeing the EU as contributing to a rise in the standard of living and the creation of more jobs. Europeans are also concerned about the effects of globalisation, which is seen as a threat to European jobs.

Hence, the impact of Europe on its member states can have both positive and negative consequences. Economies that are dependent on high levels of trade are particularly vulnerable to external forces, whether European or global. Ireland, because of its open economy, has been susceptible to external pressures thus making it an interesting case to examine in terms of the impact of Europeanisation. Europeanisation is used to describe and explain the extent of change in national politics. Such change is believed to be brought about by participating in and implementing EU policies which the member states shape themselves. The challenge in research terms is to develop a theoretical and methodological framework for understanding the impact Europeanisation has had on Ireland. Fundamental to this endeavour is a consideration of how well the Irish case is understood and a realisation that much of the literature on the ‘celtic tiger’ does not adequately explore the relationship between EU membership and Ireland’s domestic economic, political and social development.

In most analyses of Ireland’s success, Europeanisation is regarded as having been a primary factor. Consequently, in this study the dependent variable is Europeanisation, or more precisely the impact of Europeanisation on Ireland. Although purporting that such a relationship exists, and that it is essential to understanding how Ireland has changed, relatively few studies of Ireland have defined Europeanisation or systematically considered how it can be examined (Tonra, 2001). A wealth of literature, however, does exist on the concept of Europeanisation. This provides a rich framework and, as a starting point for this study, it is explored in chapter 2. This literature highlights the need to examine the impact of the European Union on its member states and uses the term ‘Europeanisation’ to describe and explain the changes resulting from participation in EU structures, policies and processes. Because of its comprehensiveness, Radaelli’s definition has been selected as a key element of the conceptual basis for this book. This explication suggests that ‘Europeanisation refers to the processes of (a) construction (b) diffusion and (c) institutionalisation of formal and informal rules, procedures, policy paradigms, styles, “ways of doing things” and shared beliefs and norms which are first defined and consolidated in the making of EU decisions and then incorporated in the logic of domestic discourse, identities, political structures, and public policies’ (2003: 30). There are, of course, a range of other definitions some of which are discussed in chapter two. The main emphasis in these explanations is on how, or to what extent, has EU membership and participation changed domestic policies and institutions.

Cognisant of these dimensions of Europeanisation, the objective of the present study is to systematically explore the impact Europeanisation has had on selected policy domains. The range of case studies selected, namely, the economy, regional development, agricultural and rural policy, environmental policy and foreign relations encompasses the key sectors of change. Each of the cases examined is located in its historical context with the focus on the domestic arrangements which prevailed prior to EU membership, particularly, the institutional and policy arrangements. It is hypothesised that following EU membership, and over time, different policy areas are subjected to varying adaptational pressures, reflecting differing levels of EU policy influence and involvement. In some instances, European pressures are clearly a catalyst for change, given that member states are required to adopt EU policies. In other areas the pressures have been less apparent, perhaps reflecting the EU’s more limited policy involvement, or the fact that limited change is required. In each instance the impact of Europeanisation on existing institutional arrangements is examined and the degree of adaptation and change assessed. Closely related to the impact of Europeanisation on institutional adaptation is its impact on policy content and patterns of governance, key themes in this study.

Historical and political dimensions prior to EEC membership

To understand the impact of Europeanisation on Ireland it is important to locate the analysis in the historical context of the development of the modern Irish state. The immediate aftermath of Irish independence in 1922 did not herald major change and, until the 1960s, Ireland remained an isolated island on the periphery of Europe. In its first four decades of sovereignty, rather than following the European model of development or actively engaging in international affairs, the new state remained not merely geographically linked but also economically and politically linked to Britain. In effect, Ireland’s progress was closely tied to that of Britain, and its neighbour continued to exert a strong influence on many facets of Irish life. The state remained largely aloof from international politics, albeit joining the United Nations in 1955. Neutrality in World War II was regarded as both a practical policy choice and a symbol of Irish sovereignty (Girvin, 2006; Falkner and Laffan, 2005; Finnegan, 2001). Ireland was not an active early supporter of European integration, and while the state did join a number of European and international organisations in the post-war period, it used such organisations to assert its independence and sovereignty (Coakley et al., 1997).

Politically, independence did not precipitate transition problems as Ireland inherited a well-established set of structures based on the British model. The new Irish administration exhibited conservative cultural norms and wholly absorbed the organisation and principles of its predecessor. Domestic politics revolved mostly around the realm of the centrist civil war parties Fianna Fáil and Fine Gael. In terms of economy, Ireland was predominantly agricultural and had yet to experience the rigours of an industrial revolution. The state missed out on the strong growth witnessed in other European economies during the post-war expansion. The need for access to wider markets, lack of industry, high unemployment, sustained emigration and the declining condition of public finance prompted a shift in government thinking in the 1950s. Instrumental to this change from a rhetorical tradition of protectionist ‘self sufficiency’ to liberalisation was the publication of T. K. Whitaker’s Economic Development in 1958 and the leadership of Taoiseach Séan Lemass. The perception that the Irish economy could only prosper if it were fully open to the European and wider international market transformed policy-making strategy and provided the rationale for the application for EEC membership.

Three economic programmes were implemented prior to EEC membership. They utilised state aids and tax concessions to attract foreign companies to Ireland. As a result the 1960s heralded a decade of unparalleled growth and change in the Irish economy and Europe became a focal point of government policy. The decision to seek membership was therefore bound up with the decision to open the economy in the search for prosperity and welfare (Laffan and O’Donnell, 1998: 156). The reassessment of the domestic economic paradigm is also reflected in concerns over the isolation of Ireland from the discussions to move towards closer economic integration in Western Europe and the eventual formation of the European Free Trade Association (EFTA) in 1958 (Falkner and Laffan, 2005: 211).

Ireland made its first application to join the EEC in July 1961. The driving motive behind the application was principally economic (Laffan, 2003; Maher, 1986). The common agricultural policy would provide expanded markets for Irish farmers while free access to markets for exporters would guarantee that foreign direct investment would flow into Ireland from non-EEC countries. Symbolic factors also mattered since forging relations with Europe diminished the primacy of the link with Britain and positioned Anglo-Irish relations against the multilateral backdrop of the EEC. The issue of neutrality featured on the agenda, but any perceived threats to Irish neutrality were minimised in the debate. The task facing the government was to illustrate that the Irish position was sui generis and did not correspond to those of Sweden, Switzerland or Austria in that its non-involvement in military alliances did not preclude full commitment to the political aims of the Community (Maher, 1986: 141).

In the initial negotiations reservations about Ireland’s commitment to the political aims of the Community did arise given its non-membership of the North Atlantic Treaty Organisation (NATO) and doubts were also expressed over the underdeveloped state of the economy (Finnegan, 2001). Despite setbacks caused by the fractious French–British relationship regarding Britain’s application, EEC membership remained an objective. Meanwhile, the shift from ‘dependence to interdependence’ in the emergence of international governance (Laffan and O’Donnell, 1998) continued with Ireland joining the International Monetary Fund (IMF) and the General Agreement on Tariffs and Trade (GATT) by 1967. Trade links with Britain were also strengthened under the Anglo-Irish Free Trade Agreements signed in 1965. In 1969 de Gaulle’s departure and replacement with Pompidou marked a transition whereby Ireland’s application was revived and negotiations began in 1970.

Ireland’s entry into the EEC

Following the treaty of accession in 1972, Ireland became a member of the EEC on 1 January 1973. Although EEC membership was moulded by the expectation of economic benefits, it was apparent by 1970 that membership would entail implications of a political and social character. Membership altered the relationship between the executive and parliament (Oireachtas) as the latter no longer had the sole law-making power. This required an amendment to the Irish Constitution that formed part of the 1972 referendum. A necessary preliminary to formal ratification was the publication of a white paper entitled ‘The Accession of Ireland to the European Communities’. This provided a detailed account of the terms for Ireland’s accession. But it also contained an assessment of the implications of accession and its constitutional and legal ramifications. Subsequently, the government concluded that the national interest and welfare would best be served by joining the enlarged community. Little attention was paid to how European affairs would be managed after membership since the white paper contained no systematic discussion of the possible implications of membership for policy-making procedures. However, considering the underdeveloped economy and inward looking perspective it is not difficult to adduce that EU membership had a profound impact on the internationalisation of public policy and was a significant factor in the modernisation and industrialisation of economy and society.

Surprisingly, the diminution in sovereignty did not become a major issue in the referendum campaign preceding accession as was the case in Denmark or Britain who also joined in 1973. Before the constitutional referendum Article 29.6 stated: ‘no international agreement shall be part of the domestic law of the state save as may be determined by the Oireachtas’. The European Communities Act 1972 provided that, ‘The Treaties governing the EC and the existing and future acts adopted by the institutions of those Communities shall be binding on the state and shall be part of the domestic law thereof.’ This heralded a major change in Irish administrative law; but was not the subject of particular interest during the referendum campaign. The amendment to Article 29 of the Constitution permitted Irish membership of the EC and provides that the Constitution cannot be invoked to nullify European law or any national law required by membership.

Economic issues continued to be the main focus of the debate over EEC membership with European integration regarded by the Irish political and economic elite and society as a positive sum game (Laffan, 2003). The two major parties Fianna Fáil and Fine Gael together polled 80 per cent of the first preferences in the election prior to the referendum and urged a ‘yes’ vote. A turnout of 71 per cent voted 83 per cent in favour of membership on 10 May 1972. The Labour party and Sinn Féin had campaigned against membership but Labour accepted the outcome when it went into government with Fine Gael in 1973. The broad political consensus was assisted by the fact that membership in 1973 preceded the growth in the European regulatory framework and the institutionalisation of the 1980s and 1990s. Until direct elections to the European Parliament in 1979 Irish MEPs were selected from the Dáil and served under a dual mandate. Fine Gael was more pro-active in its engagement with the European Parliament and aligned its members to the Christian Democrats whereas Fianna Fáil’s strategy was more reactive with it siding with the French Gaullists. Being a small state the objective of the government and other institutional actors was to participate positively in the Community as opposed to engaging as a strategic architect of European integration.

In the early years of membership government attention was focused on issues of key interest to Ireland – agriculture, distributive policies, budget and market access. In general, political actors remained concerned with short-term national issues and public attitudes were largely influenced by the immediate direct economic and social benefits membership could bring. This was an era when GDP per capita levels were merely 58 per cent of the EU average and it would be two more decades before the economic benefits of membership would be compellingly evident (Falkner and Laffan, 2005; Laffan and O’Donnell, 1998). The impact of accession on the legal and social fabric of the state, however, was immediately evident with the application of European law. One early example concerns the guarantee of equal pay for men and women for equal work as detailed in the equal pay directive, a guarantee which initially met with resistance from the Irish government.

Government and governance in Ireland: responding to internal and external influences

The decision to join the European Community marked a significant turning point in the development of the Irish state as it changed the context in which Irish politicians and officials functioned. The community that Ireland joined in 1973 was very different from the European Union of today. In 1973 it was a fledgeling economic community, largely focused on developing a common market, free movement of goods, labour, people and services, and a limited number of policy areas such as agriculture, and it comprised only nine states, compared to twenty-seven in 2008. Therefore, Ireland’s development since membership has been occurring in tandem with that of the European Union, an entity which has changed in significant ways since the 1970s. There is, then, a complex relationship between the deepening and widening of European integration and the EU’s impact on Ireland’s development. The context in which the European Union and its member states function has been evolving and changing, reflecting EU treaty changes and enlargement, the evolution of the modern welfare state system in western Europe, and its response to globalisation. By implication, this means any understanding based on a study of Europeanisation is likely to involve a simplification of a complex process.

The changing character and policy repertoire of the European Union has significant implications for the way in which its member states go about their daily business. Over time, a complex system of multi-level governance which involves an array of national and European level actors in the policy process has emerged. A reawakening of interest in integration theory during the 1990s reflected developments in the European Union. The Single European Act (with its emphasis on completing the internal market) and the Maastricht Treaty on European Union (with its increased involvement of the EU in a range of new policy areas in which competences were shared with the member states) led to a shift in interpretative approaches with such developments being interpreted using a governance lens. As an approach, governance and the study of multi-level governance, offers an alternative to the meta-level or grand theories of integration (Hooghe and Marks 2001; Majone 1996; Peters, 1994, Marks, 1993). It also provides the basis for a more systematic study from a comparative perspective, utilising, as it does, the tools of political science and public policy analysis, thereby allowing for comparison with other systems in Europe and elsewhere (Hix, 2005; Scharpf, 1999). Governance models help in conceptualising and examining the relationship between the EU, its institutions and the member states.

Research on the Irish case has often focused on the institutional and policy adaptation of the state to the requirements arising from the development of new EU policy competences (Laffan and Tannam, 1998; Tonra, 2001; Flynn, 2004; Adshead, 2005; Rees et al., 2006; Laffan, 2006; O’Mahony, 2007). The focus tends to be predominantly on how Irish institutions have adapted their structures, processes and operating procedures to comply with European rules, norms, expectations and practices. Much of the evidence available in studies on EU structural funds, agricultural policy and social affairs suggest that Ireland has pragmatically adapted to Europe or, at least, is perceived by the Commission as being compliant (Barry, Bradley and Hannan; 2001; National Economic and Social Council (NESC); 1989). Arguably the costs of not adapting to Europe would have been high and would have severely damaged the Irish economy, dependent as it was, during much of the 1970s and 1980s on financial subsidies from Europe. In other areas such as environmental policy, taxation, justice and home affairs and foreign policy the state has more vigorously defended national interests. Europeanisation is, therefore, not a unidirectional force, as might be inferred from much of the discussion in the literature. Member states do have an opportunity to influence, shape and at times block European policy at the negotiation stage in the Committee of Permanent Representatives (COREPER), the Council of Ministers and in European summit meetings.

Aside from external forces, such as Europeanisation and globalisation, Ireland’s development also needs to be understood in terms of internal forces that have shaped the polity and economy. In this study we place a considerable emphasis on examining domestic structures and policy preferences as important to understanding Europeanisation. In the 1960s Ireland emerged from a period of protectionism and economic isolation that had characterised the 1940s and 1950s, and successive governments sought through the...

Table of contents

• Cover Page
• Title Page
• Copyright Page
• Contents
• List of figures and tables
• List of contributors
• Preface and acknowledgements
• List of abbreviations and Irish terms
• 1 Ireland and the European Union
• 2 Europeanisation: a catalyst for change
• 3 Mediating forces and the domestic polity
• 4 Political institutions and administrative adaptation
• 5 The Irish economy and Europe
• 6 Regional policy and politics
• 7 The politics of environmental policy
• 8 Does the CAP fit? Agriculture policy in Ireland and the EU
• 9 Ireland’s foreign relations
• 10 Conclusions: institutional learning and adaptation to Europe
• Bibliography
• Index