Brexit deal an important breakthrough, Ibec Brexit Tracker sets out progress
Dear Member
Today European leaders sign off on a phase one Brexit deal. It’s an important and welcome breakthrough.
The fact that talks now move to a transition deal and then onto the future relationship has reduced the risk of a “no deal”. This is very good news for business, even if major uncertainty remains. Ibec has worked very closely with government over the last year, setting out key Irish concerns to the EU institutions, other member states and our partners in European business. This work has paid off.
The deal has a range of positive and far-reaching elements relating to Ireland. What does it mean for business?
- The agreement of all sides to the continuation of the Irish-UK Common Travel Area is a major achievement, that will benefit businesses and workers. It will make it easy for companies to transfer staff to UK operations, and for workers in both jurisdictions to move back and forth. It is an important recognition of unique Irish-UK economic and social ties. The issues could have become a political football in talks.
- On avoiding a hard border and protecting the all island economy, the commitments are substantial and very positive, if not quite so straightforward. It is difficult, if not impossible, to square the UK commitment to avoiding a hard border on the island of Ireland, with leaving the Customs Union and Single Market, while also ensuring Northern Ireland does not diverge from Britain. Yet that is the clear commitment that the UK has given, explicitly accepting a default to “regulatory alignment” if no solution is agreed. If the UK delivers on this, and they must be held to it, it points towards a Brexit at the softer end of the spectrum, even if the journey to that end point is difficult to map at this time.
Ibec’s Brexit Tracker, which goes through a broader range of key issues for business and updates you on progress, can be found here: http://www.ibec.ie/0/BrexitTracker. If you have queries please get in touch directly.
While Irish concerns are now firmly embedded in phase two of the Brexit process, the fraught nature of recent negotiations risks limiting the ambition of future talks. It is vital this does not happen. Ireland must play a central and constructive role as talks move on. Ibec will work to support these efforts. As we know, Irish and UK economic fortunes are utterly intertwined, and will remain so after Brexit.
Earlier this week I did an extended interview with Matt Cooper, which addressed many of these issues, and broader economic challenges. To listen visit: http://www.ibec.ie/0/DannyMcCoyInterview
If you have any comments or queries get in touch. It’s always great to hear from you.
Best wishes
Danny
Friday, 15 December 2017