Michael McGrath (Cork South Central, Fianna Fail)
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My Government colleagues and I have remained alert to the challenges and the potential economic impacts arising from Brexit, including paying particular attention to the effective implementation of the Trade and Cooperation Agreement (TCA) and to the Withdrawal Agreement, which includes the Protocol on Ireland and Northern Ireland.

Building on its early and extensive contingency planning and analysis, the Government dedicated substantial resources to preparing for Brexit. We invested significantly in new infrastructure, systems and staff; engaged extensively with stakeholders; and provided a range of financial, upskilling and advisory supports for impacted sectors and businesses.

My Department, the Central Bank and the NTMA have worked closely in recent years to ensure the financial system was well prepared for Brexit. The nature, scale and complexity of Ireland’s international financial services sector is changing in a number of ways as a result of firms relocating within the single market, and the sector is broader and more diverse with more firms carrying out a greater range of regulated activities than at any time. The full impact of Brexit for Ireland’s international financial services sector may not materialise for some years. The Joint EU-UK Financial Regulatory Forum met for the first time in October 2023 and a second meeting will take place on 22 May. This is intended to facilitate information-sharing and manage inevitable divergence over time. It is a positive step towards maintaining financial stability and market integrity, and reduced further the potential impact of Brexit on Ireland’s financial services.

Brexit will have a negative impact on the Irish economy compared to when both Ireland and the UK were members of the European Union. That said, the disruption to the domestic economy from Brexit is playing out more slowly than the fast-moving shocks we have also experienced in terms of Covid-19 and the impact of the situation in Ukraine. While the Trade and Cooperation Agreement provides for tariff-free trade between the EU and the UK, non-tariff barriers – such as regulatory checks – will weigh on cross-border trade. The phasing in of UK import controls began in January 2024, with further phases due in April and October. The pragmatic approach of the UK government is welcome, however readiness of UK authorities is of concern to Irish agri-food exporters and this is being monitored across government.

The Government is committed and remains focused on protecting our economic and financial interests, and will continue to work to minimise the disruption that Brexit will have on the economy and peoples’ livelihoods to the greatest extent possible. A number of government departments and agencies continue to provide advice, support and schemes to support sectors in managing the impact of Brexit.