ENLARGEMENT of the EU will present more opportunities than threats for Ireland, according to a report from IBEC. However, some sectors such as textiles, clothing and food will face threats.

The report assesses the consequences of nine new entrants to the EU from central and eastern Europe. The arrival of 110 million new consumers will generate export and investment opportunities, it says, while a more stable political and economic environment will help growth, employment and business prospects.

The report says that some sectors of industry - such as textiles, clothing and some branches of engineering - "will be very sensitive to the opening up of the EU's markets from these low cost countries". Improving competitiveness in these sectors should thus be a priority for the Government, it says.

The report also predicts that, although these new EU members will compete with Ireland for mobile investment, "the effect will not be as great as had been feared". However, inward investment in clothing and textiles is already under threat. While the implications for the food sector are difficult to assess, extending the CAP to new entrants "will undoubtedly result in further competitive pressures arising".

The report says that the Government should seek guarantees about the level of EU transfers to Ireland post enlargement.