The overall economic fallout for Ireland of the UK decision to leave the European Union (EU) will take time to become clear and will require careful economic and political management, according to Fianna Fáil Spokesperson on Finance Michael McGrath. Deputy McGrath has said a calm and careful analysis of the impact of Brexit on the Irish economy is now needed.
Deputy McGrath commented, “The result of yesterday’s referendum is deeply disappointing from our perspective. While the reaction on the financial markets has been swift and severe, a fuller assessment of the impact on our economy will take some time to emerge. It has to be recognised that the drop in the value of sterling has caused an immediate problem for Irish firms exporting to the UK and in the wider conduct of cross border commerce.
“Much will now depend on the negotiations around the UK’s exit from the EU. Until the shape of the UK exit and its post Brexit relationship with Ireland and the remainder of the EU becomes clear, there will be an inevitable period of uncertainty. The Irish Government will need to ensure that our deep economic ties with the UK are to the fore in these negotiations at EU level. While we must remain positive, we would be naïve to think that the impact of yesterday’s decision won’t influence the shape of budgetary policy in Ireland over the period ahead.
“When the Summer Economic Statement was published by the Government earlier this week, a Brexit was a possibility. It is now a reality and the Department of Finance should start the process of preparing an updated assessment of our economic prospects to take account of that. Fianna Fáil recognises it is imperative that all those in the Oireachtas work together in the national interest to manage the fallout from this UK decision and we are committed to playing a positive role in that regard.”