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Irish Government Regrets UK Decision to Leave EU
| Wall Street Journal | - |
Ireland's
government Friday said it regretted the U.K.'s decision to leave the
European Union, saying it had agreed a set of measures designed to
cushion its economy against potential disruption to the close economic
and financial ties between the two ...
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ENLARGE
Ireland's Prime Minister Enda Kenny addresses journalists during a news conference in Dublin on Friday.
Photo:
Agence France-Presse/Getty Images
But it was also seeking to profit from the historic move by targeting international companies that may want to relocate from the U.K. to what will become the only English-speaking member of the bloc.
In a somber statement after a meeting of the cabinet, Prime Minister Enda Kenny also said the U.K.’s decision had implications for Northern Ireland and its relationship with the Republic of Ireland that “will require careful consideration.”
The government had warned ahead of the U.K.’s referendum that a vote to leave the EU would have damaging consequences for the country’s economy. In the short term, the pound’s depreciation against the euro could weaken Ireland’s exports to its main trading partner, while the government worries that could become a longer-term problem if the U.K. economy suffers or new trade barriers are erected.
“I’m very sorry that the result of the referendum is for the U.K. to leave the EU,” he said. “I want to reassure the Irish public that we have prepared for this eventuality.”
If the government’s fears prove well founded, it would be a blow to Ireland’s economy as it recovers from a crisis that followed the bursting of a property bubble from 2007, and left the country dependent on financial assistance from the EU and the International Monetary Fund. In a sign of how close the ties between Ireland and the U.K. are, the British government contributed heavily to that bailout.
Prime Minister David Cameron said
he would resign after the U.K. voted to leave the European Union. He
said a new leader will be in place by October. Photo: Getty Images
Mr. Kenny stressed Ireland’s ability to weather economic storms.
“Ireland is a strong, open and competitive economy and our ongoing economic recovery is testament to our resilience,” he said.
He added that officials at the central bank, the agency responsible for government borrowing, and the government’s treasury department were working to ensure that heightened volatility in financial markets “is carefully managed.”
He also unveiled a series of “key measures” agreed on by the cabinet in response to the U.K.’s decision. They include a drive to recruit international companies looking to secure their access to EU markets, and particularly those operating in financial services.
“Marketing will be intensified in key sectors where newly-mobile FDI flows may be available, including Financial Services, arising from companies who wish to be based in an EU Member State,” said a document released by the government Friday. “An assessment will be prepared for Government identifying the potential for new FDI arising from the UK leaving the EU.”
Along with Scotland, Northern Ireland voted to remain a part of the EU. That prompted fresh calls from Sinn Féin for a separate referendum on whether the region should leave the U.K. and join with the Republic of Ireland to form an all-Ireland state. Sinn Féin has long campaigned for a united Ireland and is the second-largest political party in Northern Ireland, helping to govern the region in partnership with the Democratic Unionist Party, which favors continued membership of the U.K. and campaigned to leave the EU.
Stocks in Japan suffered their
worst day in five years and the British pound plummeted to its lowest
level in around 30 years after the U.K. voted to leave the European
Union. Photo: Reuters
“We’re certainly not getting into that space now,” said Dara Murphy, Ireland’s Minister for European Affairs, in response to a question on prospects for a united Ireland during a meeting in Brussels.
The Irish leader said a key priority in negotiations between the U.K. and remaining members of the EU would be to maintain the common travel area established as Ireland gained independence from the U.K. in 1922, and which has allowed Irish people to live and work in Britain, and Britons to enjoy the same rights in Ireland.
Write to Paul Hannon at paul.hannon@wsj.com