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There is an elected parliament (Dail) with 166 members and an upper house (Seanad) of 60 members. Members of the Dail are elected directly by the people for a maximum term of 5 years. Members of the Seanad are elected from panels of candidates for a 5-year term. The President of Ireland is the Head of State and is directly elected by popular vote for a term of 7 years. The President's role is primarily ceremonial although the President must sign all legislation into law. Political power is held mainly by the Prime Minister (Taoiseach) and the Parliament. The political system is considered stable with no wide policy changes between various administrations. There are six political parties in Ireland: Fianna Fail, Fine Gael, and the Progressive Democrats are generally considered right-of-centre maintaining conservative policies while the Labour Party, Democratic Left, and Workers Party are considered left-of-centre.

House of Representatives (Dail Eireann) Election Results 1997
Fianna Fail	39.3%
Fine Gael	27.9%
Labour Party	10.4%
Progressive Democrats	4.7%
Democratic Left	2.5%
Sinn Fein	2.5%
Workers' Party	0.7%
Independents	9.8%

Ireland has a population of 3.6 million, of which over 1 million live in the Greater Dublin area. The birth rate is one of the highest in Europe and half of the population is under 28 years of age. With an excellent education system there are good prospects for employment for many graduating students. Irish life, springing from a small proprietor and agricultural society, is characterised by a general absence of rigid class structure and is egalitarian in outlook.

The country is 300 miles long and 170 miles wide or slightly larger than West Virginia. The terrain is mostly rolling plains in the interior of the country surrounded by hills and low mountains, especially along the west coast. Ireland benefits from a temperate maritime climate with mild winters and cool summers.

In addition to a well-trained and educated work force, the country has some natural resources of gas, lead, zinc, and peat. The Irish economy is small, open, and highly dependent upon international trade. The value of merchandise trade (imports and exports) is a significantly higher proportion of gross national product (GNP) for Ireland than for most other nations. In Ireland, merchandise trade is equivalent to over 105 percent of the GNP figure while in the United Kingdom it is equivalent to 42 percent; Germany, 43 percent; the United States, 15 percent; and in Japan 16 percent. The ratio of Irish trade to GNP is twice the European average and about six times that of the United States. Two out of every three jobs in the Irish manufacturing sector are directly related to exporting.

The Irish constitution guarantees the right to own private property with the economy based on private enterprise and the market system. However, with a small economy, the government presence is more significant because of the state-controlled activities in communications, utilities, and transportation. The rapid growth of trade and industrial development is encouraged by government, which provides extensive incentives and direct grants.

The entry of Ireland into the European Community (EC) in 1973 was a significant event to promote the industrialisation of the country. Foreign firms, particularly Americans, found that setting up a manufacturing base in Ireland, behind the EC "tariff wall" to avoid customs charges, provided a duty-free access to the Western European markets and also a skilled work force.

The 15 countries of the European Union (EU), the 3 European Economic Area countries ( EEA - Liechenstien, Norway, Iceland) and 1 European Free Trade Association (EFTA country - Switzerland) form the largest and most affluent market in the world. These 19 countries have a combined population of 375 million persons. To take advantage of this market and the generous investment incentives, some 900 foreign firms have established production facilities in Ireland. Over 340 of these firms are American, with a concentration in electronics, computers, health and medical products, pharmaceuticals, and chemicals. Since the Irish market itself is relatively small, the foreign subsidiaries located there manufacture to serve the European market. Manufactured goods accounted for 65 percent of the total Irish exports in 1989 compared with a 2 percent level in 1950.

The country has few natural resources and must import a major portion of the raw materials and intermediate goods needed for manufacturing. American suppliers have good sales prospects in such a market. There is a high propensity to import associated with any increase in the level of Irish exports of manufactured goods. This dependence on imports and the policy of rapid industrial development makes Ireland an attractive market for American products.

The country is now making adjustments to align with the EU's directives developed under the Single Internal Market Program. To prepare for an enlarged pan-European market and the resulting increase in competition, Irish firms are seeking commercial contacts with established and reliable North American trading partners to introduce new products, technology, and production techniques into the European marketplace. The combination of North American capital and product technology, and the Irish location in European markets will work to the advantage of both partners. In addition, with an Irish-based distribution centre, there is ease of European connections, a pool of well-educated and English-speaking workers. Within this hospitable business climate, North American firms will find excellent commercial opportunities by working with the Irish business community.

The Irish economy is now growing strongly and is the fastest growing economy in the EU and OECD. The past three years have witnessed real economic growth of 5-10 percent per annum. In 1996, the Irish economy achieved real GDP growth of about 8 percent and the outlook for 1997 and future years is very positive with growth rates of 5%-6% forecast. Unemployment is now below the European average and annual inflation is less than 2 percent.
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European Union
As a member of the European Union, Ireland must ensure that its legislation complies with that of the European Community under the Treaty of Rome. There are four main institutions of the EC that carry out the drafting and administration of the legislative process the EC Commission, the European Parliament, Council of Ministers, and the European Court of Justice. The Commission makes proposals for EC directives, and the Council of Ministers decides whether to accept or reject the proposed legislation.

The European Commission is located in Brussels and is composed of 17 commissioners, each of whom is appointed jointly by the EU member governments. Each commissioner is responsible for several directorate generals which function as the civil service. Once developed and approved by the Commission, a proposed EC directive is passed to the European Parliament in Strasbourg for approval. The Parliament is composed of 518 members directly elected by voters in the member countries. Parliament conducts two consecutive readings on proposals and can approve, fail to disapprove, reject, or recommend changes to a proposed directive.

The Council of Ministers is the main legislative and decision-making body in the EC. The 15-member council is composed of foreign ministers or cabinet officials from member states' governments and represent their national governments. The Council of Ministers has power to veto or agree on proposed legislation. On certain proposed directives, the Council voting is based on a weighted vote system. The presidency of the Council is rotated at 6-month intervals so that each member country will have some authority and responsibility. Once a proposed directive becomes approved, each member state must incorporate the directive into its own national legislation within a specific time frame unless the country obtains a derogation because of special circumstances. The final arbiter over disputes of EC law is the European Court of Justice. The European Court is composed of judges appointed for 6-year terms by agreement of the member states.
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EU Single Internal Market
The European Union embarked on an ambitious program to develop a more united and barrier-free internal market for trade among the 15 member countries. As an EU member, Ireland is fully participating in this program. The program created an internal market of 320 million consumers with freedom of movement for goods, services, labour, and capital as well as greater competition and lower prices for the consumer. The EC Single Internal Market program involved the adoption of some 279 directives that established new EU-wide requirements for a broad range of business activities and result in the harmonisation of standards for thousands of products. This program is expected to create greater economic growth, improve production and marketing efficiencies, increase competitiveness, and lower costs to the consumer. It will created new EU product standards and regulations that will have to be adhered to by all suppliers to the EU market.

The Internal Market program presents a challenge and an opportunity for American firms doing business in the EU. North American industry must be informed and respond to changes and new competition in the commercial environment. American firms seeking to sell products in Ireland, or to establish a business operation there, should review both the Irish and EU regulations. In many cases, the national product standards are being replaced with unified EU-wide standards. These unified standards will make it easier for U.S. suppliers to produce for export to the EU since one product will be accepted for sale in all 15 countries. Steps are also being taken to harmonise national procedures for product testing and certification and to establish a common EU trademark and copyright laws.

For more details, contact:
Single Internal Market Information Service, International Trade Administration, Room H-3036, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC, 20230, (202) 377-5823.
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Social issues
With the Great Famine in the mid-19th century a period of emigration, mainly to America and England, began. This led to a population decline from 6.5 Million in 1840 to 2.8 Million in 1961. Since the 1970s this mass emigration has decreased, but persistent problems with unemployment still result in net emigration.

One main characteristic of the population structure is the very high percentage of young people, a consequence of high fertility rates and the emigration of adults. In 1980 the birth rate was still the same as 100 years before with about 22 births per 1,000 inhabitants. Recently it began to decline (1992: 14.6). But in 1991 as much as 44% of the population were under 25.

Two issues that were recently in the focus of public debate are divorce and abortion. Both were still illegal up until recently due to the strong influence of the Catholic Church in Ireland. In a recent referendum on divorce (November 1995) the population voted 50.5% in favour of ending the constitutional ban on divorce.
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