Former EU commissioner Charlie McCreevy said it would be "the height of folly" if parts of the 28-member European Union took a "vindictive" approach to talks on the UK's exit.

“The UK is and will remain one of the world’s largest economies and thus it would make no sense for either the EU or the UK not to have a close relationship into the future,” Mr McCreevy told reporters in Naas, Co. Kildare as he was appointed as chairman of financial services firm Murray Spelman.

Mr McCreevy, who was the European commissioner for internal market and services from 2004–2010, said he hopes common sense will prevail on both sides of the talks, when they happen.

While Ireland was in a “difficult position” during the negotiations given its close links to the UK and committed continued membership of the EU, he said Taoiseach Enda Kenny’s Government has taken a pragmatic approach.

“Britain came to the support of its European partners in the two World Wars of the 20th Century. Given that history, it would be more than ironic if countries on mainland Europe did not treat the UK in a very fair manner in the upcoming negotiations,” Mr McCreevy said.

He said it was too early to say whether Ireland will be a big beneficiary of Brexit as multinational companies, particularly banks and financial services groups, look at moving business out of London following the vote. He also declined to comment on Fianna Fail’s recent surge in opinion polls and mounting speculation in recent days on Mr Kenny’s future as Taoiseach.