Bernard Durkan (Kildare North, Fine Gael)
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81. To ask the Minister for Finance the degree to which he continues to monitor the potential economic fall-out in the event of a partial or total exit from the European Union by the United Kingdom; if the full implications continue to be examined; and if he will make a statement on the matter. [40900/15]

Michael Noonan (Limerick City, Fine Gael)
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The Government's position on developments in relation to British membership of the EU has been clearly articulated, in particular by the Taoiseach and the Minister of Foreign Affairs and Trade: we very much want the UK to remain an integral member of the Union. This is important for both our economy and the ongoing development of the excellent bilateral relations Ireland and the UK now enjoy; Ireland is perhaps the Member State which would be most affected by any change in the EU/UK relationship. We also believe that the EU itself is stronger and more effective with the UK as a member.

The UK's continued membership of the Union is therefore a matter of strategic importance for the Government. In this regard, Government Departments, including my own, have been working on this matter for some time. Under the Department of Finance/Economic and Social Research Institute (ESRI) research programme agreement, my Department commissioned research to be undertaken on scoping the potential economic implications on Ireland of a change in the EU/UK relationship. The research was published on 5 November and is an important contribution in deepening our understanding of the potential issues arising. Although the research was commissioned under the Department of Finance/ESRI research programme agreement, it is important to underline that the ESRI is an independent institution.

My Department, and other Government Departments, are continuing our assessment of all the issues involved in protecting Ireland's economic interests. However, I want to emphasise that the main focus of our work is now on examining how to support UK membership of the Union, rather than planning for its withdrawal. In this context, the Deputy will be aware of the publication of Prime Minister Cameron's letter to the President of the European Council on 10 November 2015 in which he sets out in broad terms the changes that the UK intends seeking in the renegotiation of its membership of the EU. We are now entering a phase of discussions at EU level, leading up to the December European Council. Ireland will be very engaged both at political and official level.

Given the very preliminary stage of the discussions, and with details of the UK's proposals still to be clarified, it is too early to be definitive on specific Irish positions or to comment on what changes in the EU/UK relationship might materialise. Our focus, for now, must be on contributing constructively to negotiations, working with EU partners to reach pragmatic solutions, while also of course protecting the economic interests of Ireland.