Ireland’s unique position in being disproportionately affected by Brexit must be considered when the European Union distributes its Covid-19 recovery fund, a Fine Gael TD has said.
Deputy Neale Richmond TD, said, “After weeks of negotiations, the EU is due to agree a €750 billion recovery fund to help Member States in their recovery from the economic damage the Covid-19 pandemic has caused and will continue to cause in the future.
“These funds are vitally important for Europe’s quick rebound from the economic recession we have found ourselves in due to the pandemic. Brexit is another global issue that is to have a large effect on Ireland’s economy, not through our own faults or our own actions but due to circumstances out of our control.
“Currently, Ireland is expected to receive €3 billion from this fund, €1 billion in loans and €2 billion in grants. The European Commission will allocate these funds based on what position the Member State’s economy was in before the Covid pandemic, and to what extent the pandemic has harmed their economy.
“While these funds are very welcome, the distribution should not be based purely on previous performance, but also should take into account indications of damage and risk in the future. The impact that Brexit is expected to have on Member States’ economies should be factored into the distribution of these funds. Irish businesses have been heavily hit by the Covid-19 pandemic, but will also be disproportionately affected by Brexit, no matter what form it takes, deal or no-deal.
“Compared to a scenario with the UK remaining in the EU, the best-case Brexit scenario would see Ireland’s GDP shrink by 3.2% by 2030, with a trading agreement on WTO terms cause Ireland’s GDP to decrease by 7%. While Ireland has been preparing for Brexit for years, we will require help from our European colleagues to help us weather this storm.
“To deal with a global pandemic and a potential no-deal Brexit in less than a year could be catastrophic for many Irish businesses. Help will be required, and this is an opportunity for reassurance to be given to Irish businesses who have been trading in an atmosphere of uncertainty for the past four years.”
