Ireland budgeting for a disorderly Brexit

Oct 21, 2020

An expectation of a no-deal Brexit was the backdrop against which Ireland’s Budget 2021 was set last week, with a range of supports announced to help the most vulnerable sectors of the economy to prepare for a “hard” Brexit. Measures covered include: 

  1. Supporting the most vulnerable sectors
    New funding of approximately €340 million has been set aside to get Ireland ready for the new trading environment that January 2021 will bring. These funds will be used to support Ireland’s economy over the coming year and will be allocated as the need arises to ensure Ireland remains competitive and resilient to the changes ahead. €100 million is already earmarked for the Revenue Commissioners, Department of Enterprise, Trade and Employment and Department of Agriculture to help prepare for Brexit.  

  2. European Funding

    In July, the European Council agreed to establish a €5 billion Brexit Adjustment Reserve, a fund which will offer funds to countries and sectors that will be worst hit from Brexit. More details on this fund will be released in due course.  

    Shared Island Fund

    A new multiannual capital funding for the Shared Island Initiative (part of the Programme for Government) of €500 million is to be provided over five years to create new investment and development opportunities on a North/South basis and support delivery of key cross border initiatives. €50 million is to be made available in 2021.