Bernard Durkan (Kildare North, Fine Gael)
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105. To ask the Minister for Finance the extent to which he has evaluated the likely future impact on financial and other markets in the event of a United Kingdom exit from the European Union; if events in the debate to date have been reflected in the markets; and if he will make a statement on the matter. [17769/16]

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; independent research indicates that Ireland is the EU Member State which would be most affected by any change in the EU/UK relationship.

In addition to the important bilateral considerations, 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 2015 and is an important contribution to understanding the potential issues arising.

In relation to financial and other markets it is clear that there has been heightened volatility in recent days and weeks and that this could have implications for the economy.  In addition to the economic implications set out in the ESRI research I have outlined an assessment of the risks in the Summer Economic Statement. 

My Department, and other Government Departments, are continuing our assessment of all the issues involved in protecting Ireland's interests and we are continuing to explore the potential risks and to plan accordingly.