Ireland needs to plan for a no deal Brixit, says Central Bank Governor

DUBLIN: Central Bank of Ireland Governor Gabriel Makhlouf has called for a no – deal Brexit plan.

The transition period ends on December 31. Recent legislation by the UK government has raised concerns, but we have to deal with Brexit with better plans. He was speaking at an event hosted by the Institute for International and European Affairs in Dublin.

Earlier, the central bank had estimated that a breakdown of the Brexit would reduce the Irish economy’s GDP by 1-2%. He said those figures need to be reviewed in the current context.

The central bank believes the no-deal Brexit will hurt the Irish, but we must move on, he added. Regulators believe that the economy as a whole is ready to deal with Brexit at any rate.

Meanwhile, Deputy Prime Minister Leo Varadkar said the British government’s strategy for the Brexit talks had failed.

Even countries, including the United States, have questioned the manner in which the Brexit withdrawal was handled. They will not ignore the breach of promise made to the European Union. This could adversely affect future trade deals with the UK.

It is not clear what the UK government intends to do with the new bill. However, their strategy must be considered to have failed. They hope to negotiate with other countries as an independent sovereign state after Brexit.

But there will have to be a response to the breach of trust shown to the European Union. He said Britain’s future would be better off withdrawing from the new plan, which violates the Brexit withdrawal agreement and international law.

Countries including the United States have criticised it. Varadkar pointed out that former British Prime Ministers Tony Blair, David Cameron and John Major were among those who criticised the UK’s new bill.

“The most important thing for Irish farmers and exporters is that we secure a free trade agreement so there are no tariffs and no quotas on the trade of goods between Britain and Ireland,” the Tanaiste said.