What does Brexit mean for Ireland?
Following the chaos of Friday morning’s news, there has been a lot of questions about what is going to happen to Ireland, much of it unknown. One thing that can be noted is that we won’t be stopped by border control overnight. The process of leaving the EU is lengthy and although the process is sure to begin soon it will not be completed until two years after Britain formally hand in their resignation. Changes will be seen immediately, with the British pound gone into a serious decline and David Cameron having announced he will stand down from October.
The ESRI published research in November on ‘Scoping the Possible Economic Implications of Brexit on Ireland’. The following was compiled on the idea of Britain leaving the EU:
- Membership of the European Economic Area (EEA) and the European Free Trade Area (EFTA) – similar to Norway’s relationship with the EU;
- Bilateral agreements with the EU and membership of EFTA – similar to Switzerland’s model;
- Membership of a Customs Union with the EU – similar to Turkey’s relationship with the EU;
- Bilateral Free Trade Agreement with the EU;
- No preferential trade agreement with the EU (most favoured nation tariffs will be applied in line with membership of the World Trade Organisation)
- The world won’t end with Britain leaving the EU as their are many policies already in place with other nations that can work for Britain’s relationship with the rest of Europe.
Where does this leave us? There are some positive elements that may come out of Brexit for Ireland. Such as, large multinational companies with bases in the UK, may decide to set their sails for Ireland in order to maintain an EU presence. We are the last remaining native English speaking country in the EU which makes us a unique offering. With so many major companies already having their base here, it makes sense for others to follow suit. This would lead to more jobs and the possibility for more growth in Ireland. There are however, many negative effects that this could have on our economy. As the value of the British pound has dropped, travelling to Britain and online shopping may go crazy, but it poses difficulty for trade as Ireland will have to become a lot more competitive, and drop their prices a lot to stay relevant in the British market.
Bank stocks have gone down 25% and sterling down 12%. We know from experience that when times get tough contractors are normally the first to go. So before you are pushed, now is a great time to jump across the Irish sea and see what Ireland has to offer. Strike while the iron is hot! Give Ireland’s most experienced and connected IT recruitment team a call today on 01 6793182!