The ultimate outcome of Brexit is still uncertain as a hard Brexit remains “sufficiently plausible”, the Central Bank of Ireland deputy governor has warned.
Ed Sibley said that, while the UK leaving the EU without a deal had been averted “for now”, the current proposed Brexit deal will have economic impacts across the EU and Ireland.
He said that Boris Johnson’s proposed Brexit deal will allow divergence between the UK and the EU and result in increasing complexity in cross-border trade across a range of sectors.
Mr Sibley said it is important that Ireland continues to invest in and enhance its approach to influencing future direction of EU policy.
Speaking at the inaugural Brexit conference in Dublin City University, Mr Sibley welcomed that the risk of the UK departing without a deal had been averted for now and recognised that intensive work has delivered a strong level of preparedness.
He also outlined how the Central Bank’s work on Brexit has been delivering on the Central Bank’s mission to serve the Irish public.
“While we may be reaching the end of the beginning, a hard Brexit is still sufficiently plausible to require planning,” he added.
He said that financial services firms still have a “duty of care” to their customers to take advantage of the extra time available to continue to prepare for the UK’s departure from the EU.
Mr Sibley highlighted that the proposed departure agreement allows increased divergence between UK and EU rules and will result in increasing complexity in cross-border trade across range of sectors.
“In other words, even if ratified, the current proposed deal will have economic impacts and affect the provision of financial services across the EU,” he added.
Mr Sibley urged the hard work needs to continue, adding that Ireland needs to remain sufficiently focused on wider implications of Brexit, and changing European dynamics.
He added: “As the UK leaves, it is increasingly important that Ireland continues to invest in and enhance its approach to influencing the future direction of EU policy.”