Enda must secure us the best deal possible

AS the reality of Brexit kicks in, we have seen the full financial effects of the planned withdrawal by the UK from the EU, and how they affect real people.

Yesterday, stock markets around the world saw as much as €2trillion wiped off stock values, while the pound continues falling – after its first catastrophic slide as the results from various constituencies were being announced in the small hours of last Friday morning.

Shares in Irish companies with significant export exposure to Britain were hammered, with worrying consequences for the final values of pensions when we come to retirement age.

Exporters selling to Britain face a stark choice: leave prices as they are, making the goods more expensive for British buyers, or simply take the hit themselves in order to maintain sales volumes.

As a small economy, we do not have the ability, as Britain does, to print more money, leaving us in what seems to be a very precarious position. However, this is not the time to panic. The pound may have fallen against the euro, but it still is above the exchange rate at the time of the great financial crisis of 2007 and 2008. Stocks, we should remember, are a longterm bet, and we have seen many times before just how quickly jittery investors find renewed confidence and help the market bounce back.

Most importantly, we are hearing soothing political noises. The rash invective of many Eurocrats has already been matched and exceeded by conciliatory noises coming from Europe’s leaders – democratically elected leaders, let us remember, not unaccountable bureaucrats. Despite calls from within the European Commission for a speedy divorce, Angela Merkel seems more disposed to relationship counselling, and has indicated she sees no reason why any decisions about the future must be rushed.

Also, the penny finally seems to have dropped across Europe, as she and others recognise that austerity and the didactic application of it has not worked; Ms Merkel has committed herself to addressing the real issues facing the fractured continent – fixing borders, attempting to end youth unemployment, and aggressively pursuing economic growth. Punishing Britain, no matter how tempting it might be to some, is in no-one’s interests. When the European Council – the body comprised of all the leaders of EU member states – meets this week, it must endorse these sentiments.

For its own part, Ireland must insist on being treated as a special case in all negotiations about the future of the UK in the EU. There must be no internal border on this island, the Common Travel Area must be respected, and our reciprocal right to vote when resident in each other’s countries must be preserved.

Despite its often fractious nature, the relationship between our two islands is a special one, and Enda Kenny must ferociously resist any attempt to impose tariffs on trade between our two nations.

Brexit may seem a disaster right now, but it also might present opportunities we have not considered before. We are not great at securing good deals from the EU – but this time, Mr Kenny must play hardball to ensure that we do.