Stephen Donnelly (Wicklow, Social Democrats) | Oireachtas source

When we spoke on Brexit in the Chamber last week, I stated that the decision by the people of the UK to leave the EU is bad for the UK, Ireland and the EU. We see that the UK economy is already showing signs of some damage. We have also seen warnings from the UK Government that it will look to reduce spending on public services so it is already beginning to see some economic turbulence. Obviously, if it disinvests in public services, it will see social damage as well.

We have already started to see some economic damage in Ireland. Billions were wiped off companies listed on the ISEQ. The figure on the first day after Brexit was approximately €10 billion. A total of 40% of trade between indigenous Irish companies and the world is between Ireland and the UK so €2 in €5 that Irish companies trade globally is traded with the UK.

We also know that UK tourists account for about one quarter of all spend by foreign visitors to Ireland. Last year, UK citizens made 3.5 million trips to Ireland so the fall in sterling and its volatility, both of which are likely to continue, and the general rise in uncertainty relating to the UK globally, within the UK and in Ireland are not just likely to start affecting Irish businesses very quickly, they are likely to hit tourism in Ireland almost straightaway this summer.

While there has been a lot of talk about the damage to the UK and the potential damage to Ireland, there has not been very much talk about the damage to the EU itself. It is as if the EU and the European project are somehow divorced from the UK's decision to leave. The European project is important. I consider myself to be a proud European. The European project has helped secure decades of peace in Europe. We lead the way globally in areas like human rights, international development and climate change.

The European project must succeed but it is losing its way. During the banking crisis the institutions of Europe hung Ireland out to dry. Threats were made to our economy by the ECB and Jean-Claude Trichet talked about a bomb going off in Dublin. At every stage of the troika programme Ireland had either the worst or joint worst deal when it came to borrowing terms, interest rates and so forth. When Ireland needed solidarity, we were treated very badly. There is also a growing democratic deficit in the European Union. In 2004 we saw the fiasco of the so-called European constitution. The people of France and the Netherlands said no to it so they changed its name, said it was no longer a constitution but a treaty and the people's vote did not matter anymore. We were asked to vote on it twice.

During the economic crisis, we saw Germany move further into the centre in terms of calling the shots in the eurozone when it came to Ireland, Greece, Portugal, Spain, Italy and so forth. More recently, we have seen a small number of the large countries, including France and Germany, become more and more central to European policy. The day after Brexit, we saw the six founding members come together, have a press release and photo call and essentially speak with the voice of the European Union about what was happening with the UK.

The European Union is undoubtedly poorer without the people of the United Kingdom in it. If lessons are not learned, the European Union is likely to find itself not just without the UK but potentially without other members as well. We are now seeing calls in France, the Netherlands, Denmark, Greece, Sweden and other EU countries to hold referendums similar to that in the UK. Brexit was partly about immigration but really it was about a disconnect between the European project and the people of the UK, who are European citizens. This disconnect and sense of disempowerment can be seen all over the place. We see it in the rise of ultranationalism - in Golden Dawn in Greece, the Alternative für Deutschland party in Germany, the National Front in France, the True Finns party in Finland and the Freedom Party of Austria. These are all on the rise because the European project is not bringing all its citizens along. It is becoming more and more a project for special interests - a project for the haves rather than the have-nots. That disconnect and democratic deficit is what led people in the UK who feel disempowered to vote to leave the European Union.

The Taoiseach referred to regret. He said when he was at the Council meeting there was a sense of regret among the Heads of State of the European Union members. Regret is irrelevant. What is needed is reflection followed by action. I have here the six-page statement from the European Council which covers immigration, border controls and a lot of different things. The final item on it, No. 9, is "Outcome of the UK referendum". In a six-page document, the only thing the European Council has to say about the outcome of the UK referendum is, "The UK Prime Minister informed the European Council about the outcome of the referendum in the UK." There is nothing in there about lessons that have been learned or that need to be learned. There is nothing about a period of reflection or the rise of ultranationalism in the European Union. What is needed is a clear understanding of how the European Union needs to learn the lessons and follow a model that is inclusive both socially and economically.

The Taoiseach stated that Brexit highlighted a crisis of confidence in the EU and in politics and institutions around the world, and I agree with him. He is absolutely right. I say to the Minister, Taoiseach, Government and Dáil Éireann, let us act accordingly. If we recognise that Brexit is the result of a crisis of confidence in the EU and political institutions globally, let us build confidence in the EU and political institutions globally. Let us commit to no more regressive budgets, no more tax cuts and commit to investing instead in indigenous business and in giving every child the opportunity to achieve their potential. Let us commit to calling out the lack of transparency and special interest that appear to be involved in the Transatlantic Trade and Investment Partnership, TTIP. Ireland has limited influence when it comes to the European Union. We are one of 28 members and we are a small member. We can act in a manner that demonstrates how to rebuild confidence. Why do we not change our economic policy? Why do we not change our social policy to demonstrate that the choice is not between economic strength or a decent society, or economic strength and a decent society, but that economic strength and a decent society make each other stronger? Why do we not change our approach and build a republic that demonstrates the advantages of economic strength and a decent society to show how a more globalised world can benefit all citizens and not just the few?

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