Ireland may suffer the most from Brexit
Making it one of the few European countries that wants to be kind to Britain
ON OCTOBER 25th John Bruton and Bertie Ahern, two former Irish prime ministers, appeared before a committee in Britain’s House of Lords to discuss the impact of Britain’s decision to leave the European Union on its western neighbour. Both men were sombre. Brexit, said Mr Bruton, might deal Ireland’s economy an even heavier blow than Britain’s—even though, as he added wryly, “we had no say in that decision.” Since 1973, when both countries joined the EU’s precursor, the European Economic Community, Irish businesses have become intertwined with British ones, said Mr Ahern. Unpicking those ties would be “devastating”.
The first blow has already fallen, says Fergal O’Brien of IBEC, a business lobby group. As sterling has weakened, exports to Britain have become less competitive, and imports from Britain cheaper. Britain takes two-fifths of Irish-owned firms’ exports, and a similar share of all agricultural exports. Beef and dairy farmers are struggling, and several of Ireland’s mushroom farms, which export four-fifths of their produce to Britain, have already closed. The pain will worsen as sterling’s fall and Brexit-induced business uncertainty hit demand in Britain, says Mr O’Brien. “When your partner shoots itself in the foot, you’re bound to suffer too.”
This article appeared in the Europe section of the print edition under the headline "Britain shoots Ireland, too"
Europe October 29th 2016
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- Ireland may suffer the most from Brexit
- If the EU cannot do trade, what can it do?
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