Britain's vote on EU membership creates uncertainty for Ireland and the possibility of a British exit – Brexit – is a cause for concern, with many of the key risks already set out. That said, the view of Ibec chief executive Danny McCoy, who argued last week that Ireland might have to consider its own position in the EU if the UK were to leave, makes little sense.
Britain is still our largest single trading partner and Brexit would invalidate the EU rules on which this trade is based. A host of other issues would also emerge, relating to the movement of people, the border with the North and many other areas of our relationship. These would be difficult and complex to deal with and would cause problems for many Irish companies trading with Britain. But to suggest that the answer might lie in Ireland considering its own EU membership is wrong. At a stroke, this would remove this State from a trading bloc, membership of which is at the heart of our attraction for inward investment. It would also mean that Ireland would have to leave the euro, with all the upheaval that would entail.
Mr McCoy warns that Brexit could see the UK deregulate and cut costs and thus be able to lure investment away from here. This is, indeed, a possibility. However the deregulated, low cost model is not one which Ireland would wish to pursue to the same extent in any case. Costs are an important attraction for foreign direct investment here, as is our low corporation tax rate, but so is the base of skilled employees and the infrastructure resulting from the presence of large numbers of big multinationals.
With a referendum on British membership now certain. it is in the Irish interest that it takes place sooner rather than later. A vote for Britain to stay in Europe would be in Ireland's interest and the Government will do what it can to support UK negotiations with the EU, at least insofar as doing so does not conflict with other Irish interests. Brexit also carries huge economic risks for Britain, and Ireland should not flirt with the idea of following the same dangerous path.