The UK should remain within the Single Market and the Customers Union for the full duration of any post-Brexit transition regime, according to Irish business lobby Ibec. And it called for a €1 billion special fund to help businesses affected by Brexit.
Speaking at the publication of a new Brexit policy paper in Brussels, chief executive Danny McCoy warned that the UK government was leading Britain towards an economically calamitous Brexit divorce.
Mr McCoy said the UK approach continued to put short-term political concerns ahead of jobs and the needs of business, without any regard for established trading relationships.
Ibec’s call was supported by the umbrella business organisation Business Europe and strongly backed calls this week from the Confederation of British Industry.
Mr McCoy urged the EU and the Irish Government to set aside €1 billion for special measures to assist companies that would need to restructure or diversify because of Brexit.
“A temporary EU state aid framework will be needed to help European companies trade through any adjustment period,” he told an audience of business leaders, MEPs and EU officials. “In the case of a fraught exit, funds amounting to up to €1 billion over three years may be needed from domestic and EU sources to help Irish companies innovate, diversify into new markets, train staff and invest for the future.”
EU fund
The Ibec report, Brexit: Challenges with Solutions, also calls for a recalibration of the way in which a substantial EU fund to deal with the consequences of globalisation works.
The European Globalisation Adjustment Fund funds education, retraining and enterprise supports aimed at workers made redundant by globalisation, and Ibec suggests its mandate should be extended to those affected by sudden economic shocks like Brexit.
It argues that member states must also be given more fiscal flexibility to invest in infrastructure.
“Any new deal must recognise the unique economic and political challenges that Brexit presents to Ireland, and put in place a range of specific measures to address these. This will need to include provisions on travel and labour market rights, while also addressing Ireland’s unique trade exposure and the challenges presented by a potential customs border on the island of Ireland.”
