Since I am not on the ground year round much if this is my opinion.
Much comes from discussion with my family and friends that are there year round as well as some small business owners.
We are getting off topic, but since you did ask..
How were they taken advantage of? I'm not disagreeing with you, just curious.
For a year before the changeover everything was priced in Euros and Pounds.
After the changeover thing were only priced and Euros and seemed to go up unexplainably.
Some of this could be related to higher wages coinciding with the economy taking off, but the wages had already started to climb before the changeover.
Prices in supermarket got crazy IMO.
Most people feel that the shop owners took advantage of them.
One recent example that comes to mind is that some of the clothing shops have price tags in Euros and Sterling because they sold the items in the north as well as the Republic. It came to light that that the items where much cheaper in sterling (30-40%) so they started cutting off the part of the tag that had the price in sterling.
I understood the "Celtic Tiger" economy took off and was the rock star in Europe - has it turned back for earth?
Crashed back to earth is more like it. Just one example, about 400 showed up for 40 jobs at the new McDonalds in Ennis. Many had college degrees and had previously been making a nice living.
Many people are taking pay cuts just to keep their jobs, but still have large mortgages on houses that have dropped over 30% in value. (same as the US I Know)
Many of the good jobs have gone to other countries. Many of the factory jobs have gone to Poland for example.
Or is it still OK but the euro switch has the country at a disadvantage?
I don't think that it has it at a disadvantage and in the end Ireland made out well thanks to the EU. Lots of road works and the such.
All that being said as a country it is much harder to react.
A country can no longer put in programs in place that attract business.
For example one of the things that helped create the Celtic tiger were the tax deals for business coming to Ireland. This attracted Microsoft as well as Dell. That got some sweet deals for about 10 years and then left or downsized.
With the EU I do not think they have as much, if any, flexibility.
You also can't do things to improve you exchange rate to attract foreign visitors for example. It's tough to go back to Ireland to visit with the current Exchange rate on top of how expensive things are.
I'd think that one of the adverse side effects of a common currency is an amplification of differences in the economies. So for instance, in the old days Germany might offer better travel deals driven by their local supply/demand and the currency fluctuations. A visitor won't know the difference, they'll just think that their british pound must be strong vs. the deutschmark, and thus the rooms seem cheap.
Today, euros are euros. And there's no currency translation to get lost in - so a hotel costs $200 in Dublin and $100 in Berlin - and the natural conclusion is that Dublin hoteliers are ripping people off.
The reality is that local supply and demand are driving the prices and the Dubliners are charging what they can while the Berliners are doing the same.
This is a tough one to quantify for some of the reasons you mention.
I think overall that people in Ireland do feel like they were being ripped off.
Obviously wages are (were) higher in Ireland so things will cost more.
The issue is how much more a simple item can cost.
They are now trying to lower the minimum wage because it had gotten to high in some peoples opinion.
In Berlin a nice meal can be under 15 Euros per person. (Several types of pork with sides and a beer with a 1 Euro Tip)
In Ireland a Chinese Takeaway can cost 15 Euro. A pizza 18 Euro.
Berlin is not the best example since things are much cheaper there then other parts of Europe.
Still a weekend in Germany\France\Italy or Austria at a nice hotel is less expensive than a weekend in a below average hotel in Ireland in my experience. I am not even talking about Dublin. Dublin is one of the most expense (top 25) cities in the world.
I am always surprised at how much better the values are on the continent.
The cheap airfare also helps. Three round trip tickets to Venice from Shannon cost me about $100 Euro.
When I was there over the summer things were getting better.
Supermarkets are now competing with better prices.
Here is an article in the Irish Times on how this is changing now that the Irish are becoming cost conscious:
http://www.irishtimes.com/newspaper/weekend/2009/0815/1224252580974.html
Some points from that article.
*In 2005, the Consumer Strategy Report (CSR) commissioned by the government found that Ireland was the dearest country in the euro zone for food, soft drinks, tobacco and rent, and the second most expensive for alcohol, restaurants and pubs.
*A CSO report said Ireland had the second-highest prices in Europe, at over 25 per cent more than the EU average (for 2007 and 2008).
*The booming economy taught us all the price of everything and the value of nothing.