State report: Our economic stability at risk from Brexit

Ireland’s economic recovery is at risk from the potential departure of Britain from the EU and the likely relocation of a number of key multi-national firms due to the US presidential election, a Government report has claimed.

A strategic national risks document released yesterday has included the issues alongside impaired loans and the ongoing housing crisis among a series of financial hurdles the State may struggle to overcome unless they are adequately addressed.

The 44-page report, which is now being sent out for public consultation over the coming weeks, is focussed on a variety of issues including those relating to the economy, environment, social issues, technological developments and international political developments.

However, despite the wide range of issues examined, a number of key moves in the coming months could leave Ireland’s economy “potentially vulnerable” to difficulties.

The Government report in particular focuses attention the imminent Brexit vote, which is due to take place in Britain on June 23, saying it could have damaging knock-on effects for this country if it is not handled carefully.

The report also notes at risk of issues should a number of multi-national firms key to jobs growth in this country choose to re-locate to other parts of the world for financial reasons of political changes in nations like the US.

The “challenge” of impaired loans in Ireland is also likely to impact on the burgeoning recovery if it is not properly addressed, the report says, while it also notes that the Central Bank mortgage limits are exacerbating the housing, rent and homelessness crises.

On non-economic matters, the report points to the differing ways EU states reacted to the migrant crisis as an issue which could hamper cohesiveness in the common market.

It also said that while a terrorist attack by Islamic State or a similar group is unlikely in Ireland, it is still possible and that the country must be prepared for such an eventuality.

The report, which can be read at taoiseach.gov.ie, is currently at draft format stage and will undergo public consultation over the coming weeks.

Views can be sent to nra@taoiseach.gov.ie by Friday July 8.

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