Query: Why are the EU and Republic of Ireland flags at the Lough Erne G8 resort?

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Just out of curiosity I noted both the EU and Republic of Ireland flags flying at the Lough Erne resort in County Fermanagh on the local news earlier today. Now the G8 leaders countries are the USA, Canada, UK, Germany, Japan, France, Russia & Italy. Apparently the Presidents of the EU Commission and European Council also attend which explains the EU flag but sort of defies the logic of the `Group of eight`. Ireland currently holds the Presidency of the Council of European Union.  The flag of the country holding the Council of the European Union has not been flown on previous occassions. At the 2004 G8 Sea Island Summit in USA with Ireland`s Bertie Ahern present as EU Council president the EU flag was flown twice to represent the European Commission & EU Council .

http://www.youtube.com/watch?v=lqovTGjYjM4

Why is the EU flag flying anyhow since it is not a nation? And why are unelected José Manuel Barroso and Herman Van Rompuy the ninth and tenth members?

G8 in Gleneagles, Scotland, UK in 2005

Youtube video

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