The days immediately following Brexit saw great economic fallout and in an article by Frank Greene, we see that Britain’s economic growth will continue to be adversely affected, especially in the short term. He also indicates that Brexit might create an EU domino effect as the UK has considerable negotiating power with the 2nd largest economy in the EU, Germany.
On the other hand, Brexit’s impact on Ireland means that it is looking more attractive to MNCs wanting to relocate headquarters out of the UK but remain in the EU. Particularly because of the low corporation tax, ever increasing FDI and being ‘the fastest growing economy in the EU’. Ireland will want to take advantage on this, and still keep the high volume of trade with the UK.
But could Brexit mean lower economic growth in Ireland as well? While Britain and Ireland have many similar interests, the damage done to the pound means Irish exports will be more costly to the UK. Furthermore, there are numerous tax considerations; Ireland and the UK aren’t always simpatico when it comes to tax legislation. Greene’s article suggests, as many do in this time of uncertainty, that whilst there are many potential outcomes affecting Britain and Ireland, it is still too current and unfamiliar to define any wider impact. You can read the full article here.