A infamous day.
Once the dust settled on the result of the Brexit referendum, attention turned towards the ramifications for everyone involved.
While the answer is pressing for those in the UK, mass ambiguity remains for how the vote will affect other countries, which is where Ireland comes into the equation.
With the implementation of the decision set to be deferred for some time yet, there is room to prepare and build for the future, with the Taoiseach Enda Kenny calling an early halt on the Dáil recess to plan the country’s future.
Here are just some of the ways that Ireland could be impacted by the result.
Cheaper imports, more expensive exports
This will be one of the most significant and immediate changes from the referendum.
The Sterling has fallen to its lowest value since the mid 1980s, with the Euro strengthening against it, meaning buying goods from the UK will now be cheaper, and Irish exports more expensive.
That may sound good in theory, but, in reality, once the UK officially exits the EU, taxes on those imports and exports are likely to be very significant indeed, with job losses a probability.
The uncertainty about border controls between the Republic and North
It’s not yet known to what extent, if any, that this will be an issue, but the conversations have definitely started.
There may be passport and security controls in the north, and that could very well affect Irish businesses time and money, not to mention the possibility of political tensions re-arising.
There is no question that this is an immediate concern for the nation.
A possible plus point; Ireland may attract more inward investment
Ireland’s renowned low corporation tax has always been a massive temptation for foreign investment, with the likes of Facebook and Google making themselves at home in Dublin.
While that has proven to be controversial in many quarters, a lot of the investment from abroad that had originally been planned for the UK, may now be diverted to Ireland.
It is a seriously feasible prospect that could prove to be a silver lining throughout the whole affair.
However, with Britain’s economy sneezing, Ireland may now very well catch the cold too
With their currency taking a seismic and sudden plummet, the UK’s economy has endured an equally dramatic nosedive which could take Ireland with it.
According to RTÉ, Ireland’s GDP could take a knock in the region of €3 billion in the aftermath of this result. Not to mention the fact that Ireland’s agriculture market is massively reliant on doing business with the UK (Britain purchases 84% of our poultry).
Furthermore, it will be difficult for Irish companies to engage in long-term relationships with their British counterparts with the actual implementation of Brexit looming over the next two years.
There is no doubt, even in these early stages, that Brexit will massively impact Ireland, both here and in England. Only time will tell, just how much.
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