Varadkar: Irish economy could "contract" in no-deal Brexit

Republic of Ireland Taoiseach, Leo Varadkar has warned the Irish economy could potentially face a recession in the event of a no-deal Brexit.

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Speaking at the National Economic Dialogue in Dublin Castle today, Varadkar said: “In a no-deal hard Brexit – in which case we won’t have to worry about the economy over-heating – it will slow down rapidly, even contract.”

 

He added that the government would publish updated no-deal contingency plans next month.

Varadkar has remained bullish over the necessity of the controversial Irish backstop, something that many Eurosceptics fundamentally oppose. With neither side expected to back down over the backstop, the default is for Britain to leave the European Union without a Withdrawal Agreement on October 31.