“More work required to continue to reduce risks of Brexit” - Deputy Governor, Ed Sibley

• Recognises the work of many that has delivered a strong level of preparedness for the significant potential shock of Brexit – building on work of last decade of improving the resilience of the financial system.
• Highlights continued uncertainty as to how the UK will leave and emphasises that further work is still required to continue to reduce risks.
• Notes that the proposed departure agreement will allow divergence between the UK and the EU and result in increasing complexity in cross-border trade across a range of sectors.

Speaking at the DCU Brexit Institute, Deputy Governor, Ed Sibley, outlined how the Central Bank’s work on Brexit has been delivering on the Central Bank’s mission to serve the Irish public good.

He 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 for the significant potential shock of the UK leaving the EU without a deal. He highlighted the importance of the work of the last decade of improving the resilience of the financial system.

Mr Sibley noted that the ultimate outcome was still uncertain: “While we may be reaching the end of the beginning, a ‘hard Brexit’ is still sufficiently plausible to require planning.” 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 also welcomed the work of the DCU Brexit Institute and the launch of the BRIDGE Network, praising the focus on finding solutions to range of interconnected issues facing the EU. He 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”.

Mr Sibley noted that the hard work needs to continue, ensuring that we remain sufficiently focused on wider implications of Brexit, and changing European dynamics: “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.”

Notes:

This is a link to the presentation (PDF 668.94KB) given by Deputy Governor Sibley to the DCU Brexit Institute.

Mr Sibley was speaking at the inaugural Brexit Research and Interchange on Differentiated Governance in Europe (BRIDGE) Network Conference in Dublin City University.

BRIDGE (Brexit Research and Interchange on Differentiated Governance in Europe) is a three-year (2019-2022) Jean Monnet Network funded by the European Union’s Erasmus+ programme. It brings together scholars from across Europe to share knowledge and ideas on how to address some of the toughest challenges facing the continent. It is coordinated by the Brexit Institute at Dublin City University (Ireland) and the consortium also includes the University of Copenhagen (Denmark), Central European University (Hungary) and the Free University of Bozen-Bolzano (Italy).