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The Government has announced a five-pronged approach in order to mitigate the risks presented by Brexit for the Irish economy and trade.
A Brexit response plan is to be developed by each Government department as one part of this five-pronged approach.
It comes as a result of ongoing cross-Government research, analysis and consultations with stakeholders. Further details on what exactly is involved in the Department’s Brexit response plan have not been revealed yet.
As part of the approach, the Government has announced four other approaches it will be taking to mitigate against Brexit;
1. To continue to prudently manage the economy and the public finances.
This approach is to enable the Government to prepare against the future challenges arising out of the UK’s exit from the EU.
As part of the “Getting Brexit Ready” focus, Budget 2017 signalled a lower debt target of 45% of GDP for the mid-to-late 2020s. This will help to provide an additional fiscal shock-absorber capacity to the public finances to help withstand any shock, including the impact of Brexit.
This will complement the contingency or rainy-day fund to be established following the achievement of a balanced budget in 2018.
2. Position within the EU27 negotiation team
Ireland is to leverage its position within the EU27 negotiation team to shape the EU27 approach to negotiations, which includes aiming for the closest possible future relationship between the EU and the UK.
The withdrawal agreement should recognise the unique geographic situation of Ireland, including in terms of the volume of goods travelling to and from Ireland, and should ensure access to the single market for goods which transit through the UK, while respecting the integrity of the Union legal order.
3. Explore existing EU measures
Under this approach, the Government is to explore existing EU measures that could potentially assist Ireland in mitigating the effects of Brexit on Irish businesses and economic sectors.
This is all the while making a strong case at EU level that Ireland may require further support that responds to the fact that the UK’s withdrawal represents a serious disturbance to the Irish economy.
4. Exploit fully any opportunities as a result of Brexit
The Government is to exploit fully any opportunities arising from the UK’s decision to leave the EU. Ireland will continue, through the IDA, to promote the attractiveness of Ireland as a location of choice for companies and talented people who are looking to establish or expand operations in what will be the only native English-speaking country within the EU and the Eurozone.
The Government has also decided to bid for the relocation to Ireland of the two EU agencies currently based in the UK. The European Medicines Agency, with nearly 1,000 staff, and the European Banking Authority, with 156 staff, will need to leave the UK once it departs from the EU.
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