'Brexit' Would 'Seriously Destabilise' Ireland's Recovery

The Labour party has warned that a 'Brexit' – a British exit from the European Union – would "seriously destabilise" Ireland's economic recovery.

Labour TD and Chair of Labour's European Affairs Committee, Dominic Hannigan, said: "I am glad to see positive developments are emerging in Europe this morning and that negotiations on a Brexit deal do appear to be going well.

"Irish people should be in no doubt – a UK exit from the EU would have major consequences for our economic recovery. The British and Irish economies are largely inter-twined. Some €1bn worth of trade flows between our two countries every week.

"Any disruption to either economy would have major consequences for local jobs. Already we are operating within the confines of an uncertain international economic situation. Markets have been in some turmoil, while China's economy is slowing down and meanwhile, the EU is still recovering from the Euro crisis.  

"A Brexit would create even more instability for a small, open economy like ours. This Government believes we should do all in our power to ensure that the UK remains within the EU.

"I know that our members of the European parliament will be pushing the interests of Ireland and inform their fellow parliamentarians of the impact that a Brexit could have on our economy, on Northern Ireland and on the future of the Union itself.

"If the UK votes to leave the union, trade barriers could be erected, affecting how Irish-based manufacturers can export their goods to the UK.

"The EU has also given over €260m of funding towards cross-border institutions and organisations in Ireland through the PEACE and Interreg programmes.  

"A Brexit would end this source of funding from Europe and could seriously impact these bodies, which are promoting peace and reconciliation between our communities."

(MH/JP)