Ireland’s economy will face ‘significant disruption’ from January

Ireland’s relationship with the United Kingdom will be “difficult” and will involve “disruption” from January, regardless of whether a Brexit deal is reached or not, the foreign minister warned.

Simon Coveney has said the Brexit date has “sneaked up on the people” as the focus for much of the year has been on the pandemic.

But he said that people must be prepared because “there will be no more extensions, there will be no overtime.”

“This is legally a requirement now, on January 1, the trade relationship will fundamentally change, the UK will be outside the single market and the EU customs union and that has significant consequences. In the absence of a trade agreement in addition to many Sectors of the Irish economy will face very significant disruptions and costs in addition to all the disruptions that Covid has caused, “said Coveney.

As tense negotiations between UK and EU negotiators continued late into the night last night, Coveney said two important issues, fisheries and a governance model to address disputes around fair competition, they remain obstacles.

He said the final stage of the talks would never be easy and he expected tension and confrontations between the two sides.

Coveney, who is traveling to Paris today to meet other European ministers, warned that regardless of whether Britain leaves the EU with a deal or an accident, there will be more controls at ports and airports and the basis of trade will change. .

“We are in the space of days, not weeks,” he said about the possibility of reaching an agreement, adding: “We are running out of time.”

Mr. Coveney said: “There is a ratification process that takes several weeks. I think we all owe it to so many businesses, households and stakeholders who have a great deal of planning to do with very little time to do it in the context of the kind of Brexit they have to prepare for on January 1st. “

He said it is a “very dangerous assumption” to think that a deal could still be reached sometime next year after Britain leaves.

The implications of a no-deal with the hope that we will find a way to reach an agreement sometime in 2021, means that we are entering a period of significant disruptions, costs, stress, tension and political blame games between London and Brussels. .

“From an Irish perspective, we are caught in the crossfire there, and there is no guarantee that, in the absence of a future relationship agreement now, and the political tension that will follow, we will be able to get a future relationship agreement somewhere. moment of the first half of next year, “he said Newstalk breakfast.