EU Must Work Together to Limit Uncertainty following UK Vote to Leave
UK will continue to be a key partner, but Ireland’s future remains with the EU
Speaking this morning (24 June 2016) after yesterday’s vote on UK membership of the European Union, North Kildare Chamber CEO Allan Shine said “While this is not the result that we believe is in the long term interests of the Irish economy, the UK will continue to be a key partner for Ireland into the future. We are now entering entirely uncharted waters and there will be a period of uncertainty with numerous regulatory and financial risks for business.
The UK must now work with the other 27 countries to agree how and how quickly the UK will leave the EU and what the future relationship between the UK and EU will look like. A clear framework for a UK exit must be agreed and put in place that minimises disruption and enables businesses to plan for the new reality.
Notwithstanding the UK decision to leave, we firmly believe that Ireland’s economic future is best safeguarded as part of the EU.
Small and medium enterprises will be more severely impacted than larger companies. There is currently €1.2bn worth of trade between Ireland and the UK every week.
The ESRI has estimated that this could fall by as much as 20pc in the medium term. In terms of Irish exports, a lot will depend on the deals the UK does with the EU after the Brexit. A fall in the value of sterling will harm Irish exports.
We are advising businesses to continue on their growth plans while developing strategies to help them manage the range of uncertainties and challenges that are expected.”
Allan Shine went on to say that following the last recession Irish businesses can withstand the effects of the vote. “Many Irish businesses have come through the worst recession in decades and have shown great resilience. With the right strategy and advice, Irish businesses will emerge stronger than before”.