CH25Mindmap

Ch25 The EU โ€“ Gavin Duffy Business

Tap any card to reveal its definition

โš–๏ธ EU Laws
EU Directive
Each state decides HOW to achieve the required result โ€” within a set time limit. Binding on outcome, not method. E.g. WEEE Directive; Health & Safety Directive.
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EU Regulation
Becomes law IMMEDIATELY and IDENTICALLY in all member states. Takes precedence over national law. E.g. GDPR; Airline Passenger Rights.
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EU Decision
Binding on specific people or countries named in it โ€” not general law. Used for individual rulings.
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Directive vs Regulation โš ๏ธ
Directive: States choose HOW โ€” within time limit. Flexible.
Regulation: IMMEDIATELY and IDENTICALLY in all states. No flexibility.
โš ๏ธ Most commonly tested distinction in short Qs.
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๐Ÿ›๏ธ EU Institutions & Decision-Making
European Commission
Executive body โ€” proposes/drafts legislation, proposes EU budget, implements legislation once passed. The "civil service" of the EU.
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European Parliament
Directly elected by EU citizens. Debates proposed legislation; makes amendments; co-legislator with Council. Approves EU budget jointly.
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Council of the EU
Main decision-making body. Negotiates and adopts EU laws; adopts budget; concludes international agreements. Attended by relevant ministers.
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European Council
Sets overall political direction. Discusses complex issues but does NOT decide new laws. Heads of state/government.
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Court of Justice
Interprets EU law to ensure uniform application. Settles legal disputes between governments and EU institutions.
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Court of Auditors
External auditor of EU accounts โ€” financial watchdog. Audits EU spending, warns policy-makers.
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Decision-Making Process
The 3-Step Process
1. Commission proposes/drafts legislation.
2. Parliament discusses, debates, proposes amendments.
3. Council of the EU โ€” main decision-maker โ€” adopts (co-decision with Parliament).
Commission then implements via Directives, Regulations, Decisions.
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๐Ÿ‡ช๐Ÿ‡บ EU Membership โ€” Benefits & Challenges
Benefits
No Trade Barriers
Free movement of goods, services, labour and capital โ€” Single Market (1993). Irish businesses sell to 500+ million people without restrictions.
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Larger Market / EoS
Access to 500+ million consumers โ€” economies of scale through mass production for EU market.
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Structural Funds
โ‚ฌ17bn+ invested in Irish infrastructure โ€” roads, broadband, transport.
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CAP โ€” Farmers
Irish farmers received โ‚ฌ44bn in direct CAP payments (1973โ€“2008).
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FDI Spin-off
EU membership attracts MNCs โ€” creating jobs and spin-off business for Irish suppliers.
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Challenges
Adapted Marketing Mix
Must adapt products, pricing, promotion for different languages, cultures, preferences.
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Brexit
Customs checks, import duties, delays for UK trade โ€” especially agri-food sector.
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Extra Regulations
EU regulations increase compliance costs โ€” GDPR, environmental law, employment law.
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Distribution Costs
Ireland's island geography increases shipping/logistics costs vs central Europe.
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๐Ÿ’ถ Eurozone Benefits
No Transaction Costs
No currency exchange fees when trading with Eurozone partners.
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Reduced Currency Risk
No exchange rate fluctuation risk on Eurozone trade โ€” profits are protected.
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Easier Price Comparisons
All prices in euros โ€” easier to compare supplier prices across countries.
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Price Stability
ECB targets price stability โ€” reduces inflation risks, improves long-term planning.
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๐Ÿ“œ Key EU Policies
CAP
Direct payments to farmers; stabilises prices; Ireland receives structural funds. Protects EU agriculture.
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CFP
Prevents overfishing (mesh size rules); aid to fishermen; rules on access to EU waters.
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Competition Policy
Ensures fair competition โ€” restricts cartels/monopolies; controls mergers; prevents distortive state aid.
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European Social Charter
Free movement of labour; right to fair wage; improved health and safety across EU.
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Special Interest Groups
Role in EU consultation stage. Lobby, protest, campaign. E.g. IFA (Irish Farmers' Association).
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2025 Q3(A)Directive vs Regulation + impact of a Directive on Irish business. (20)โ–ผ
(i) Describe, with examples, the difference between a directive and a regulation. (14 marks โ€” 2@7(4+3))
(ii) Explain the impact of an EU directive on Irish businesses. (6 marks โ€” 1@6(3+3))
โœ๏ธ Part (i)
Directive: Obliges states to change national laws to achieve a required outcome โ€” states choose the method, within a time limit. E.g. WEEE Directive requires businesses selling electrical equipment to accept old appliances.
Regulation: Becomes law immediately and identically in all states. Takes precedence over national law. No implementing measures needed. E.g. GDPR applied automatically from May 2018.
โœ๏ธ Part (ii)
WEEE Directive impact: Irish businesses selling electrical goods must accept consumers' old appliances โ€” adding operational costs and logistics. Good for environment but increases workload and compliance costs.
๐Ÿ“Œ Key distinction: Directive = states choose HOW (time limit). Regulation = IMMEDIATELY and IDENTICALLY. This appears every few years.
2023 Q3(A)Importance of EU membership for Ireland. (20)โ–ผ
Outline the importance of European Union membership for Ireland. (20 marks โ€” 4ร—5)
โœ๏ธ Suggested Answer
No trade barriers: The Single Market eliminated tariffs โ€” free movement of goods, services, labour and capital to 500+ million consumers.
Structural funds: Over โ‚ฌ17bn invested in Irish infrastructure โ€” roads, broadband, transport โ€” benefiting all businesses.
CAP: Irish farmers received โ‚ฌ44bn in direct payments (1973โ€“2008) โ€” stabilising incomes and keeping farming viable.
FDI attraction: EU membership makes Ireland attractive for MNCs seeking an EU base โ€” creating jobs and spin-off business for Irish suppliers.
๐Ÿ“Œ Four well-developed points earn full marks. Include at least one specific figure (โ‚ฌ17bn structural funds or โ‚ฌ44bn CAP) for stronger answers.
2022 Q3(C)Role of EU Commission & Parliament in decision-making. (20)โ–ผ
Discuss the role of the European Commission and the European Parliament in the EU decision-making process. (20 marks)
โœ๏ธ European Commission
Commission is the executive body โ€” responsible for proposing and drafting legislation. It proposes the EU budget and funding programmes. Once legislation is passed, the Commission implements it through Regulations, Directives and Decisions.
โœ๏ธ European Parliament
Parliament is directly elected by EU citizens. It discusses and debates proposed legislation and proposes amendments. It acts as a co-legislator โ€” sharing power with the Council on equal footing. It also approves the EU budget jointly with the Council.
๐Ÿ“Œ Commission PROPOSES; Parliament DEBATES and AMENDS. The Council (not asked here) DECIDES. Don't confuse the European Council (political direction, no laws) with the Council of the EU (adopts laws).
2019 Q3(A)Evaluate role of EU institutions in decision-making. (25)โ–ผ
Evaluate the role of the EU institutions in the decision-making process. (25 marks โ€” Commission 3+3+3, Parliament 3+3, Council 3+3, Eval 0/2/4)
โœ๏ธ Commission โ†’ Parliament โ†’ Council
Commission: Executive body โ€” proposes/drafts legislation; proposes budget; implements once passed.
Parliament: Directly elected โ€” debates, proposes amendments; co-legislator with Council; approves budget.
Council of the EU: Main decision-making body โ€” adopts legislation through co-decision with Parliament.
Evaluation: The process is well-balanced โ€” Commission drafts, Parliament represents citizens and debates, Council decides. No single institution controls everything โ€” checks and balances at every stage.
๐Ÿ“Œ Evaluation marks (0, 2, 4) are separate. Your evaluation must be an opinion + justification, not just restating what each institution does.
2021 Q3(C)Evaluate impact of two EU policies on Ireland. (20)โ–ผ
Evaluate the impact on Ireland of any two: CAP | Competition Policy | European Social Charter (20 marks โ€” 2ร—8 + 2ร—2 eval)
โœ๏ธ CAP
CAP: Provides direct payments to Irish farmers โ€” โ‚ฌ44bn between 1973โ€“2008. Stabilises prices, keeps small farms viable, supports rural communities. Eval: Enormously beneficial โ€” without CAP, many small Irish farms would not be commercially viable.
โœ๏ธ Competition Policy
Competition Policy: Ensures fair competition โ€” restricts cartels/monopolies, controls mergers, prevents distortive state aid. Benefits Irish consumers with competitive prices. Eval: Double-edged โ€” protects consumers but can restrict Irish firms from growing through mergers or receiving government support.
๐Ÿ“Œ Evaluate = description + opinion. Each policy needs both. The eval marks are separate (0, 2, 4).
2020 Short Q5 / 2018 Short Q9Regulation/Directive/Institution short Qs. (10)โ–ผ
2020: (i) Explain term Regulation. (ii) Name one other method of EU legislation. (iii) Name institution that proposes EU legislation.

2018 T/F: 1. Commission directly elected? 2. Eurozone essential for free movement? 3. Directive = immediate effect? 4. Council = main decision-maker? 5. Co-decision = Parliament + Council?
โœ๏ธ 2020 SQ5
(i) A Regulation is a binding legislative act โ€” must be applied in its entirety across all EU states. Takes precedence over national laws, implemented immediately. E.g. GDPR.
(ii) An EU Directive. (iii) EU Commission.
โœ๏ธ 2018 SQ9 โ€” Answers
1. FALSE (Commission is appointed, not elected). 2. FALSE (free movement is Single Market, not Eurozone). 3. FALSE (Directive gives states time; Regulation is immediate). 4. TRUE. 5. TRUE.
๐Ÿ“Œ The 2018 T/F answers reveal common traps. Statement 2 is key โ€” Eurozone (single currency) is NOT the same as the Single Market (free movement). Statement 3 is the classic Directive vs Regulation trap.
๐Ÿ”ฅ HOT Benefits of Eurozone for Irish Business
The 2026 workpack lists this as a #1 must-know. Eurozone benefits were asked in 2019 Q3(B) (reasons to trade in eurozone) and 2018 Q3(B) (has EMU been good?). With the 2025 paper focusing on Directive vs Regulation, a Eurozone benefits question is very likely for 2026. Know all four: no transaction costs, reduced currency risk, easier price comparisons, price stability (ECB).
Last Eurozone Q: 2019 (7 years ago). Strong candidate for 2026.
๐Ÿ”ฅ HOT Role of Decision-Makers / Decision Process
The second must-know. Decision-making was asked in 2022 Q3(C) (Commission + Parliament), 2019 Q3(A) (all three + evaluation), and 2025 SQ1 (match decision-makers). Know the 3-step process: Commission PROPOSES โ†’ Parliament DEBATES โ†’ Council DECIDES. Don't confuse European Council (political direction) with Council of the EU (adopts laws).
Decision-making: 2025 SQ, 2022 LQ, 2019 LQ. Appears every 2โ€“3 years.
โšก WARM Benefits & Challenges of EU Membership
EU membership benefits/challenges were asked in 2023 Q3(A) (importance) and 2020 Q3(B) (benefits + challenges). This alternates with Eurozone questions. If the examiner asks about EU membership rather than Eurozone specifically, know: no trade barriers, 500m consumers, structural funds (โ‚ฌ17bn), CAP (โ‚ฌ44bn), FDI attraction โ€” plus challenges: adapted marketing mix, Brexit, extra regulations, distribution costs.
Last: 2023 (importance), 2020 (benefits + challenges). Could return in 2026.
๐Ÿ“… DUE EU Policies โ€” CAP, CFP, Competition, Social Charter
EU policies were asked in 2024 Q3(C) and 2021 Q3(C). The evaluate format requires description + opinion for each policy. Know all five policies: CAP (farmers), CFP (fishing), Competition (fair markets), Social Charter (labour rights), EMU (single currency). Special Interest Groups were asked in 2023 Q3(B).
Last policies Q: 2024. Could appear as combined or short Q in 2026.
โš ๏ธ No ABQ in Chapter 25
Ch25 is in Unit 7. The ABQ technique does NOT apply.
๐Ÿชค European Council vs Council of the EU
Students constantly confuse these two bodies:
European Council: Sets overall POLITICAL DIRECTION. Does NOT make laws. Made up of heads of state/government.

Council of the EU: The MAIN DECISION-MAKING body. ADOPTS laws (co-decision with Parliament). Attended by relevant ministers.
If asked about the decision-making process, you want the Council of the EU, not the European Council.
๐ŸŽฏ Directive vs Regulation โ€” The Classic Trap
The 2018 T/F SQ9 showed "A Directive is a law applicable to all EU member states with immediate effect" = FALSE. That describes a Regulation, not a Directive.
Directive: States choose HOW to implement โ†’ within a TIME LIMIT โ†’ flexible method
Regulation: Applies IMMEDIATELY โ†’ IDENTICALLY in all states โ†’ no flexibility
๐Ÿ’ถ Eurozone โ‰  Single Market
Another common trap (2018 SQ9 Statement 2):
Single Market (1993): Free movement of goods, services, labour and capital. ALL EU members.
Eurozone/EMU: Single currency (Euro). Only 20 EU states (not all). Benefits: no transaction costs, reduced currency risk, price stability.
Membership of the Eurozone is NOT required for free movement โ€” that comes from the Single Market.
๐Ÿ“Š The Decision-Making Formula
Step 1: Commission PROPOSES (drafts legislation)
Step 2: Parliament DEBATES (amends, discusses)
Step 3: Council of the EU DECIDES (adopts โ€” co-decision with Parliament)
Then: Commission IMPLEMENTS (via Regulations, Directives, Decisions)
If the Q asks to "evaluate", add an opinion: "The process is balanced โ€” no single institution controls everything."
๐Ÿ”‘ Keywords That Earn the Marks
directiveregulationdecisionimmediately and identicallytime limitexecutive bodydirectly electedco-legislatormain decision-making bodypolitical directionSingle Marketfree movement500+ million consumersstructural funds โ‚ฌ17bnCAP โ‚ฌ44bnno transaction costscurrency riskprice stabilityECBCAPCFPCompetition PolicySocial Charterspecial interest groupsGDPRWEEE