Businesses will ‘bite back’ if UK drops out without a deal
Irish and British businesses, banks and airlines will “bite back” and make Brexit decisions for themselves that could have dire consequences for both economies if a deal is not struck by Christmas, Taoiseach Leo Varadkar has warned.
Mr Varadkar made the claim as he admitted that a realistic Brexit deal deadline date is “anyone’s guess” and could be as late as January. He refused to rule out an extension to the March 29, 2019 cutoff point for the UK to formally leave the EU.
After a European Council summit undermined by fresh Brexit delays and fears that a no-deal scenario is now inevitable, Mr Varadkar said decisions must be made soon.
And, noting businesses work on a quarterly basis and cannot wait for politicians to make a last-minute March breakthrough, he said if no progress is made within weeks firms may take action themselves regardless of the wider economic consequences.
Politicians may be able to make late, late-night decisions in rooms in the new year or in December, but businesses are going to make plans long before that because the business sector operates on a quarter by quarter basis.
“Business ... banks, employers, airlines ... will start making decisions and they will start making decisions that bite back particularly in the UK but also in Ireland and other places. I think it’s in the interests of all of our citizens that the politicians and officials get on with this and get it done as soon as possible,” he said.
Mr Varadkar was speaking as he admitted a realistic Brexit agreement deadline date could be in January, despite repeated warnings in recent months about June, September and now October as cutoff points.
Asked when he believes a deal can now be agreed days after European Council president Donald Tusk said an agreement is “further away than ever”, Mr Varadkar said the date is now “anyone’s guess”.
The Taoiseach said a now seemingly off-the-cards special November summit will only take place if there is a deal to sign off on or if “talks break down”, and said while a scheduled December EU summit could see a deal struck he can not rule out the crisis dragging on into January.
I don’t know. I’ve always said October was the deadline, I know there are suggestions it could have been done earlier, but October is the deadline and it looks like we are going to miss that deadline now. There is another summit in December, I really hope we can have it done in November, and if we don’t then we will do it in December. But to be honest, I just don’t know,” he said.
While emphasising that he is “not calling for” an extension to the March 29, 2019, date for the UK to formally leave the EU amid fresh speculation over the potential move, Mr Varadkar also twice noted that it is “legally possible” if London requests a delay.
The Taoiseach said while some may view Brexit as a short-term storm, the reality is it is the political equivalent of climate change that could ravage Ireland and the UK if not tackled properly, warning: “It’s a permanent change.”
