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The announcement by the EU that it would put in place a €5bn Brexit fund has been generally well received.
It is a positive development, in that it recognises that there will be a cost because of the UK’s departure from the EU and single market.
While €5bn is a huge amount of money, in the context of the potential economic impact of Brexit on the EU’s main trading partners with the UK it may be relatively small.
Compensation
The reality is that it is an EU-wide fund, not just to support Irish agriculture against the consequences of an unfavourable trading relationship emerging with the UK after the end of this year.
Everything from German cars, Dutch flowers, Belgian chocolate and French/Spanish/Italian wine will all be looking to this fund to compensate them for the negative impact of Brexit on their sectors.
When all these sectors have been supported, it may mean the amount left for Irish agriculture is small.
However, the fact that the EU has put a fund in place creates the precedent of having a Brexit support mechanism and funding can then be increased as the need arises.
UK preparations
Meanwhile, in Britain, evidence of the practical outworking of the UK leaving the EU and single market is starting to appear.
The government has announced a £705m (€785m) for border control points between Britain and mainland Europe, a separate announcement is expected in relation to Northern Ireland.
The UK government is also launching a publicity campaign this week advising of changes people need to make in travelling to the EU.
Negotiations between the EU and UK continue for a third week, but, unlike after the first week, there has been remarkably little information put into the public domain. This is often a sign that serious discussions are taking place.
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