Ibec warns against Brexit ‘cliff edge’ scenario
22 June 2017
Ibec has outlined the need for stability and comprehensive transitional arrangements to manage the challenge of Brexit for Irish businesses in a new document, Brexit: Challenges with Solution.
It suggests five guiding principles that will need to be allied with ‘political will, pragmatism and a spirit of cooperation’:
- A smooth exit – an orderly withdrawal that protects citizens’ rights and the Good Friday Agreement
- Comprehensive transitional arrangements – it is vital to promote stability and avoid a ‘cliff edge’ scenario.
- The closest possible relationship – there must be a tariff-free economic and trading relationship between the EU and the UK into the future
- Unique Irish challenges addressed – any deal must recognise the unique economic and political challenges that Brexit presents to Ireland
- A prosperous and competitive future EU – greater flexibility is needed on the application of EU fiscal rules to facilitate investment in vital infrastructure projects
The eight priorities outlined are:
- Trade and customs
- The EU single market and regulation
- The Ireland-UK common travel area
- Ireland’s all-island economy
- Higher education and research
- Climate change and environmental protection
- Alleviation measures – the case for state aid supports and other measures
Three key actions are proposed. Firstly, a temporary state aid framework must be agreed that supports viable businesses affected by Brexit to diversify and restructure. Current state aid rules are designed to rescue large strategic industries.
Secondly, the scope of the European Globalisation Adjustment Fund (EGF) should be expanded to include European workers affected by Brexit, as it was in 2009 to include workers made redundant as a direct result of the global financial and economic crisis.
Thirdly, we need to spend much more on connective infrastructure (i.e. road, ports and air) in regions that have now been left more remote from other EU nations. In addition, member state governments must be provided to member state governments while at the same time making sure fiscal rules continue to provide a strong framework for day to day expenditure.http://www.engineersjournal.ie/2017/06/22/ibec-warns-against-brexit-cliff-edge-scenario/http://www.engineersjournal.ie/wp-content/uploads/2017/06/brexit.jpghttp://www.engineersjournal.ie/wp-content/uploads/2017/06/brexit-300x300.jpgNewsBrexit,Ibec