![\"\"](\"http:\/\/irishexaminerusa.com\/wp\/wp-content\/uploads\/2019\/02\/DzrxVMRX0AAi6NS-1024x687.jpg\")
A no-deal Brexit threatens to push Ireland into a budgetary deficit, the T\u00e1naiste has warned.<\/p>\nA no-deal Brexit threatens to push Ireland into a budgetary deficit, the T\u00e1naiste has warned.<\/p>\n
Simon Coveney said the economy would be impacted if the UK crashes out of the EU on March 29 because the Irish government would have to borrow money to fund and protect vulnerable sectors.<\/p>\n
Mr Coveney made the comments during a parliamentary committee meeting on Thursday on the implementation of the Good Friday Agreement.<\/p>\n
\u201cNobody should pretend that we can have such a comprehensive contingency plan in place that a no-deal Brexit can be managed easily,\u201d Mr Coveney said.<\/p>\n
\u201cIt\u2019s nonsense. It will have an impact on our economic growth.<\/p>\n
\u201cIt will have an impact on jobs that otherwise would have be created.\u201d<\/p>\n
He added: \u201cIt will mean that we will probably have to operate on the basis of a deficit again for another year or two rather than surplus because undoubtedly we may have to borrow money to fund and protect vulnerable sectors.\u201d<\/p>\n
The Irish Exchequer recorded a budget surplus last year for the first time since the financial crisis.<\/p>\n
A budget surplus of \u20ac106 million was posted in 2018.<\/p>\n
In January the government said it expected to run another surplus this year.<\/p>\n
Mr Coveney described the possibility of Britain imposing tariffs on Irish products post-Brexit as \u201ccrazy\u201d.<\/p>\n
He said the possibility of milk that\u2019s produced in Northern Ireland but is processed in the Republic being subject to a potential tariff of about 40% would be a bad situation for everyone involved.<\/p>\n
About 40% of milk produced in Northern Ireland is processed south of the border.<\/p>\n
\u201cIt would be crazy and we can\u2019t allow it to happen,\u201d he said.<\/p>\n
\u201cI don\u2019t believe it will happen but we don\u2019t control all the levers.”<\/p>\n
Mr Coveney added that this was one of the reasons they were planning for a worst case scenario.<\/p>\n
The Irish Government will publish its no-deal Brexit legislation on Friday.<\/p>\n
The committee heard the Tanaiste reiterate that the best and only way to ensure an orderly withdrawal of the UK from the EU is to ratify the Withdrawal Agreement.<\/p>\n
He said the Irish government remained convinced the backstop is absolutely necessary, adding that at present there was \u201cno credible\u201d alternative arrangement being put forward by the UK Government.<\/p>\n
\u201cWe have to try and find a way to provide the reassurance that many in the British parliament in Westminster are seeking before they can ratify this deal.<\/p>\n
\u201cWe\u2019re trying to do that in a way that doesn\u2019t undermine the effectiveness of a guarantee insurance mechanism\u2026to reassure people that they will never face the re-introduction of physical border infrastructure between the two jurisdictions on this island.\u201d<\/p>\n
He added: \u201cAlternative arrangements may well emerge, we have to have an open mind on that.\u201d<\/p>\n