BREAKING NEWS

BREAKING NEWS

Border deal welcome but major Brexit risk remains - Irish Central Bank

Now Reading:

Border deal welcome but major Brexit risk remains - Irish Central Bank

Border deal welcome but major Brexit risk remains - Irish Central Bank
Text size Aa Aa

DUBLIN (Reuters) - Britain's departure from the EU still poses a major risk to the Irish economy even though last week's Brexit agreement to ensure customs regulations stay the same on both sides of the Irish border is welcome, the Irish central bank said on Tuesday.

"The agreement last week is to be welcomed, but Brexit continues to pose a major risk to the Irish economy given that any final deal is still subject to continued negotiations which will be both significant and complex," Deputy Governor Sharon Donnery said in a statement as the central bank published in its twice-yearly macro-financial review of the economy.

"Without the detail of any final deal, it is prudent that we continue to call out the risks. Sectors such as agri-food and manufactured goods, which are highly dependent on the UK for trade, remain vulnerable."

The central bank added that in the absence of a final trade deal, disruption to supply chains is also a possibility while high levels of indebtedness in many Irish firms may deter investment and leave them unable to raise the finance required to alter business models post-Brexit.

(Reporting by Padraic Halpin; Editing by Peter Graff)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.