Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
THE UK’S DECISION to leave the European Union has become a complex and unpredictable beast, which has raised many questions about the responsibilities of a political and social movement weighed against the value of an economic and trade partnership.
It has started debates about the future of the European Union, the next step for the United Kingdom, and stoked the possibility of a trade war.
It’s also put the relationship between Ireland and our closest neighbour – in business, political partnerships and family ties – in jeopardy.
Over the next few weeks, before a crucial summit in October, we’re hoping to get a final plan on what Brexit will look like. But before then, let’s have a quick catch up on how we got here, what all those terms and deals mean, and what it is to be a member of the European Union.
How did Brexit happen?
After winning the general election, Tory Prime Minister David Cameron announced a referendum on EU membership. Having narrowly won the Scottish independence referendum months before (which saw Cameron travelling to Scotland at the last minute in a panic in order to rally support), the vote on EU membership was seen as an easy battle to win.
As well as being part of Cameron’s manifesto, the EU referendum was also partly prompted by the rise of Nigel Farage and Ukip, who had started to gain traction in local elections on an anti-EU, anti-immigration platform.
Boris Johnson also took a prominent part in the debate to leave the EU, which was seen as a political move to challenge Cameron as the UK and Tory leader (Johnson and Cameron went to Oxford University together, and the two have an interesting relationship – more on that in this piece from the British Independent).
On 23 June 2016, the EU referendum was held, and even at that late stage, the expectation was that the Remain vote would win (Farage gave what was considered a concession speech late in the day).
The final result saw 51.9% voting to leave the European Union (that’s 17 million people), with 48.1% voting to remain. The populations of Northern Ireland and Scotland voted to remain in the EU, while England and Wales voted to leave.
Having been left with no other option, Cameron resigned as Prime Minister.
Why did the UK vote to leave the EU?
There was much analysis about why the UK voted to leave the European Union, but the best answer comes from looking at was being said and done directly before and directly after the Leave vote: that is, before the difficulties of Brexit came to light.
One of the main reasons to leave – encompassed by the Leave slogan ‘Take Back Control’ - was to regain autonomy over UK affairs. Instead of paying into the EU which then redistributes the money in the form of grants, the UK would spend their money as they saw fit, went the argument.
This is best represented by the controversial and hotly contested “£350 million a week” which would be made in savings from leaving the EU and then given to the NHS. The day of the Brexit vote, Nigel Farage rowed back on that promise, saying it was a mistake to make such a claim. Others have also said that it isn’t possible, resulting in the big red bus, upon which the slogan appeared, to be mocked by the Remain side.
‘Take Back Our Borders’ was the slogan against immigration, which some in the UK feared in the wake of the growing migrant crisis in Europe and Germany’s pro-migration stance; and ‘Take Back Our Waters’ focused around fishing regulations and tensions around the number of EU boats that fish around the UK coast.
It’s also been said that the UK has always been a reluctant EU member state, not agreeing to join the euro being just one example. But officials in Europe also said that its politicians and representatives played a very active part in the EU, and that smaller countries could hide behind the UK when they objected strongly to certain issues.
What does it mean to be an EU member state?
The European Union started off as a coal and steel trade deal in the post-war era. Ireland and the UK joined that arrangement much later in the 1973, which was known as the European Communities by then.
In 1979, the first direct elections to the European Parliament were held and now, the European Union is both an economic and a social policy agreement between European nations. The idea is that by grouping European states together under a single market, it makes Europe more attractive as a whole for workers, and for corporate investment.
Member states pay an amount into the European Union pot, which is then redistributed as the EU elected officials see fit.
Up until now, the UK was the third biggest contributor, paying around 12.5% into the total budget. In 2016, the UK paid £13.1 billion into the EU budget, with the EU giving around £4.5 billion back to the UK in grants.
The Department of Finance said in a report earlier this year that Ireland will pay €2.7 billion into the EU budget this year, but has been asked to pay more to make up the deficit caused by Brexit (more on Ireland and the EU budget here).
A large chunk of the EU budget goes towards the agriculture sector, such as CAP payments for farmers – an industry that isn’t that pronounced in the UK, but from which Ireland and Northern Ireland benefit massively.
As part of the UK’s departure from the European Union, they will have to pay “a divorce bill” of between €39 and €44 billion, a price that’s been sharply criticised by Brexiteers, and which Dominic Raab said the UK would refuse to pay if they don’t get a trade deal.
The bones of Brexit
So now that we’re through all that – what is Brexit, and why has something like leaving the European Union become so complex?
Part of the reason is that the UK has been a part of the EU for so long, that many of its laws are EU laws, so they will have to make new UK versions when they leave (a lot of that work has already been done).
Another reason is that being an EU member state creates close ties to other countries in the form of business links, trade deals and economic activity, particularly as the UK hasn’t been explicit about what kind of trade deal it wants instead.
The UK has indicated that it wants to remain part of the single market, but wants to limit regulation on goods and restrict immigration. But the EU has said that it won’t split the four freedoms of the EU (that’s the free movement of goods, services, people and capital) just because the UK has decided to leave the EU.
The UK’s decision to leave the single market and customs union wouldn’t be as much of a problem if it wasn’t for the border between Northern Ireland and Ireland; if a hard infrastructure were to go up because of different trade rules and regulations, it could threaten the hard-fought for peace in the North, which the UK, Ireland and the EU have promised to uphold as part of the Good Friday Agreement.
There are three elements that the EU’s chief negotiator Michel Barnier put an emphasis on from the start – that’s the EU divorce bill budget (agreed), the guarantee of EU citizens’ rights in the UK and vice versa (mostly agreed, pending the jurisdiction of the European Courts of Justice); and securing peace in Northern Ireland and Ireland through avoiding a hard border (which hasn’t been agreed).
Barnier is angling for an ambitious free trade agreement, and an Irish backstop that would effectively mean a non-political custom-checks border along the Irish Sea, which he hopes would solve that problem.
But there is a lot of daylight between the two side’s stance on this issue – and even on what a ‘Plan B’ would look like.
The backstop
This is one of the most important parts of Brexit for Ireland. The backstop is an agreement between the EU and UK that if they can’t solve the Irish border issue, but can agree on all other Brexit problems, that the backstop will come into effect.
The backstop ensures that Northern Ireland would stay as part of the single market and the customs union if there is still no other solution that would avoid a hard border.
The wording of the backstop agreement was decided on 19 March after a bit of to-ing and fro-ing with the DUP, who are averse to the North being treated differently than Great Britain in the context of Brexit.
Although there are already differences in social policies between Northern Ireland and Great Britain, unionists fear that if the EU were to treat the North as an exception for peace-keeping reasons, that it could eventually lead to a united Ireland.
The DUP is supporting the Tories in government, and because of this hold a great deal of sway on the backstop issue. In a speech given in Belfast, Theresa May said that she could not agree to a border along the Irish Sea, casting doubt over how watertight the backstop agreement is.
If there’s no agreement on the backstop – as in if they can’t agree on “regulatory alignment” on the island of Ireland, meaning one set of rules in Ireland – then there is no Brexit deal and the UK will go crashing out of the EU.
What happens if there is no deal?
Good question.
No one is really sure what happens if there is no deal at the end of negotiations and the UK go crashing out of the EU. “Nothing is agreed until everything is agreed,” as Theresa May has repeatedly said, meaning that the years of preparation for Brexit could count for nothing and the UK could leave without any relationship with the EU member states, Ireland included.
In this eventuality, a border would automatically go up on the island of Ireland – the EU has already said that it’s looked at the cost of setting up and manning a border in Ireland.
Experts say that this would lead to Troubles-era violence and an end to the peaceful era the North has enjoyed under the helm of a joint DUP-Sinn Féin government (until recently).
A final plan is scheduled in for a summit in October, where European politicians are expected to vote on the final Brexit deal. But without any progress on the Irish border issue they’re behind schedule already – prompting rumours that that vote could be pushed back to December, even January.
The UK is to leave the European Union on 29 March 2019 – two years to the day since Article 50 was triggered. All bets are off as to what happens between then and now.
To embed this post, copy the code below on your site
Theres a lot of people out there keeping up appearances..they may be working,they may appear to have good jobs..but they work long hours with no job security and bring very little money home….many employers including the state took advantage of the bust to force wages and conditions down.
Spot on
I’m kind of surprised that over 600,000 people were living in poverty before the recession during the supposedly good times. Goes to show that this country never was very good at looking after the vulnerable.
We are all vulnerable.
Relative poverty Callum. The dole here is twice that of the UK.
The relative poverty line is assumed to be a household or individual bringing in less than 60% of the median income. It’s a figure applied across a number of countries, and doesn’t necessarily mean people below it are living deprived lives.
A family on 80K in Dublin could be struggling really badly with high rent and a child with a disability, whereas someone down the country in an inherited house on 20 hours a week might be quite comfortable. But some cases will sway it one way, others another way, the 60% figure is just established best practice internationally.
So it’s more correct to say that before the boom 600,000 people were ‘at risk of poverty’, and the number of people ‘at risk of poverty’ is now higher.
The country wasn’t good at booting them out to work you mean.
what do you expect from a state who’s go to plan for poverty was let thousands emigrate per year
the UK is an awful example, but generally people get a bunch of other supports via welfare in the UK
And look at what’s happening in the UK!
Keep the recovery going…………and other such nonsense.
Not to worry Tommy aka Dane will along soon to tell us what a wonderful caring government we have.
Tell me something I don’t know after paying for rent,travel costs, car insurance, etc,I’m left with about €90 a week to live on!
Yet still, still, the tone of some comments on here is that it’s not ‘real poverty.’
When the cost of living (rent, energy bills, healthy food, clothing, childcare) is so high, then it is poverty.
Sure, we are not a third world country; the days of tenements are long gone; but there are still thousands sleeping on our streets, or families with young children being housed in hotels because they can’t afford a rise in their rent.
Still the unemployed are described as spongers and ‘having it good.’ I won’t deny that there are people who screw the benefits system in this country. Also, those at the top of the financial ladder over the years have also been shown to be screwing the system and the people of this state yet there is no ‘sponger’ or ‘scam-artist’ stereotype attached to them.
Jay …to be fair nobody,or at least very few…see politicians,CEO’s,Charity executives,Councillors as anything other than scam artists to some degree or other…..
Fraud of the social welfare system is reckoned to cost the state €20 million a year.
The cost of white collar crime is reckoned to cost the state €2.5 billion a year.
Considering the above….where would you invest resources to give the best return for the taxpayer?
Keep the recovery going Enda well done hold your head up high.
Throw on a water charge there, maybe a broadcasting charge after that.
Dont forget the hike in electricity on the way.
The true cost of the bailout.
I am a single income earner, I work 39 hours a week and come out with €308. Not by my choice I’ve to stay at home as there is nowhere affordable to live. My money basically goes on my car and food. I’m trying to save but can’t afford to put much away each week
You would make more on the dole, you need to be taxed less.
I was on the dole before and was only getting €40, I did a jobbridge internship which meant I got €90 a week for 35 hours
Anita, seems like a good deal for a young person living at home. And why do you think you should move out until you earn enough to do so? I imagine you’re still very young cos for 39 hours at €9.15 you would come out with more than €310 after tax. When I was your age, earning some cash, going out and enjoying myself were given – rent a flat? Why?
Fiona…surely someone working 39 hours a week should be able to……..not live with their parents.
People who accept that this situation as being fine or OK are helping to create a world where people are exploited and will find it difficult to live life as independent adults. A country with large poverty traps is being created before you very eyes….and you think it’s OK.
I’m just about to turn 24 and I don’t want feel dependant on my parents which I feel at the moment. I think they’ve done enough for me and now I’m just a burden as I don’t see anytime soon I can move out.
Exactly Anita…in the 1970′s most got married and started a family, usually only one worked and they had their own house by their mid 20′s.
Now, we have people not starting a family until their 30′s, both must work and most likely will be renting as they cannot afford to get a house of their own.
I feel really bad for young people trying to get a life of their own…our system is broken and yet we have people on here who think this is normal and berate anyone who disagrees with government policy and labeling many as layabouts or wasters or telling them the key to their problems is to upskill…no matter what their qualifications are….the system is FUBAR and it’s cheerleaders are braindead.
Lifechoices play a very large part in someone’s relative wealth and potential for wealth creation. This is too often overlooked and never considered. Bad advice, lack of advice or guidance and ignorance also plays a vital role. It would be great to ‘give’ everyone what is assumed needed, but the aforementioned traits will bring many back to square one unfortunately. Needs comes a distant second to Wants in this age.
Anyone remember Fianna Fáil and their flippant response ‘well, we all partied’. Some might forgive and forget, but not all of us. We’ll remember what Fianna Fáil did to this country and to the hundreds of thousands still suffering
I remember when FF lowered the minimum wage by a euro an hour. I’ll never forget that extra kick in the teeth while I was down.
Does that figure include the self employed people who would rather scratch a living somehow than go on benefits? That’s if they could actually get any. I know a good few of them and they live on much less than that figure but have their dignity.
Too true.
yes it does, and what’s undignified about being unemployed?
I’m sorry. Yes, that’s not a lot of money. But people in Ireland just don’t understand what actual poverty is.
Absulutely. It’s all relative. The poorest 50 years ago were still in tenaments with communal toilets.
Rosie it’s also twice the dole in the UK. Yet there are people here who think they “deserve” more.
No its not at all..
Yeah according to this, I live in poverty. BS I do. I can pay my rent and feed and clothe myself. It’s not great, I’m looking for better work, but it’s not poverty ffs.
Dont get me wrong here i was on the dole myself but for a single person with no children 218 a week is not bad at all. Obviously with children it is a different story. If you have shelter and can eat everyday you are not in poverty , relative poverty yes.
@ Johnnathan – the report is saying that the poverty line is €215
dole for a single person is €30 below that @ €188 PW
*poverty line is €218
That is wrong the dole is not 218 a week at all for anybody…
And if your under 25 it’s only €100 and if your 25, it’s €144 a week. You only get €188 26 and over.
Who gets 218 a week? Definitely not those you just described… Single, no children. I only get 188 a week of which I have to pay 450 rent a month plus other utility bills and food….just about leaves me enough money to get bus in and out of town twice a week.
I don’t think pensions paid by the govt are sustainable at current taxation rates. Education about the tax benefits of saving for your own pension (through employer or independently) needs to be taught.
Pensions are losing money rapidly got my statement the other day 1k down since last year be better off just setting up a rainy day retirement fund at this stage
If you earn 10% return every year and your pension fund manager loses 10% every year, he will still make more money than you (assuming you have equal amounts) such are the tax benefits. Perhaps the system should be changed to allow people to save for their own pensions and claim back taxes but can you trust most people not to touch it? Unlike in a fund where they have no choice?
57% of the people in poverty are unemployed. Self inflicted really. What’s upsetting is the other 43% who are working but still stuck in the poverty trap. something needs to be done for them.
Peter the other 43% are probably elderly retired living solely off the state pension.
You’re confusing the statistics or ignoring the reason why these 57% do not have jobs. The 57% you mention are not connected to the labour market as: “they are people who are retired, students, people in caring roles or people who are ill or people with a disability.”
Is that all self-inflicted?
18% of those living under the poverty line are employed, leaving 25% who are unemployed (for reasons we do not know).
Apologies. I misread the article.
Keep the recovery going… For the upper tier of society..
‘If the government wants to close the divide, future policy “must prioritise those at the bottom of the income distribution”, said Michelle Murphy.’ The problem is that the government doesn’t seem to want to close the divide.
How many of these poor people drink and smoke?
If we want to nit pick Fred how many shop at tesco instead of lidle? How many working poor drive to and from work instead of spending 2 hours getting two buses plus a half hour walking to and from work? How many bought Christmas and birthday presents for their kids?
Darren…well said.
Well said Darren. The arrogance of some commentators here is unbelievable. Anyone e reading so e of the comments would think there was a workforce shortage, young people in rural Ireland are just sitting around on their butts with loads of posts unfilled…..
Spot on Darren
A shameful indictment of of Capitalist policies endorsed by Government. But the fools – they’re incubating massive Social unrest for the future with eyes wide open…
Peter Higgins are you forgetting taht Capatilism is the only reason so few people exist in poverty, The free market is the gretest lift out of poverty.
Thats jsut reality.
So essentialy what your saying is if you get a job and actually work hard teh chances of being poverty stricken are quite low.
Dont work and you have a 1 in 5 chance of being poor.
i’m WORKING my way out of poverty with my day job and another more profitable evening business
what about the people on 100 euro a week
Single person living at home with parents, on €188 a week. Why?
So just 100,000 more since start of recession, thats rathwr low dispite all the cuts.
This is RELATIVE poverty not actual poverty. Ireland is a rich country with lots of high earners. We can’t expect everyone, including people who refuse to work to get over 60% of the average wage. Why did the EU pick 60% anyway? Why not 40%? Elsewhere in the world poverty is understood as living on less than $2 a day. If you take that understanding then no one in Ireland is living in poverty, not by a long way.
poverty is based on the balance between income and cost of living, in a country like Ireland with a high cost of living 218 would mean you have little or no disposable income, in a third world country with a low cost of living $2 a day is a ok amount of money. It’s basic economics
A Kilo of rice or sugar or maize costs the same in a third world country as it does in Ireland if you know where to shop.
Getting your car NCTed costs more. Paying for services costs more.
750000 and rising we are all doomed the FG plan is working
And what’s the government going to do about it? Nothing.
188 a week living at home with parents is all disposable income. Happy days.working 5 1/2 day week,60 hrs or so and don’t have anything near that in a fortnight
assuming your parents aren’t poor that is
Unemployment is higher than in 2007, but it’s falling fast
There are also probably more retired people as the population lives longer.
There is certainly not a “crisis” as these agencies looking for funding are quick to claim.
Then we have Ted O Sullivan who is more interested in the seagull than the tax payer who pays his wages.
Strange one that with 96 billion in savings in the country great to live in an equal society thanks to FG and their cronies
We need to have a top tax rate of 80% for income over €100k, that won’t bring in enough so we need a rate of 60% for income over €80k that won’t bring in enough either, so we then have to get to Vincent Browne territory with a 50% rate on income over €50k.
Alternatively, or in tandem we can chase down the corporation tax or even increase it. That might be difficult with our neighbours in Brexland thinking of cutting theirs.
We already pay close to 50% on anything over 34k. The state should not take more than half in direct taxes at any income point.
Sure why not take a pint of blood each week while you are at. As if we don’t pay enough tax in this country as it is like. Your suggestion would not only drive Foreign companies out of the country and deter future investment, put 100′s of thousands out of work, bring the economy to its knees it would also increase our overall public spend and put us back in recession. Fancy another bailout do we, so we are forever under the control of the IMF vultures. We need to focus on creating higher paid jobs, not creating endless welfare state schemes that go nowhere to eradicate poverty and just hurt the working people. The constant wealth distribution in this country just seems to take more money out of the hard working people who earn it and give it to Bankers, spongers and quangos and the genuinely poor actually don’t ever seem to benefit. All the extra taxes, USC this and that since the recession and 100,000 more in poverty proves it.The only way to fully eradicate poverty is through full employment and incentive working over benefits with lower taxes, allow people spend the money within the real economy as opposed to being state managed money pits.
Theres already a 51% tax & it starts well below €50k.
You really should know what taxes you’re paying if you are employed. It sounds like you aren’t or never have been.
I don’t see any of the ‘Unions’ fighting for our cause. They only fight for the people earning from €30,000-€100,000 per annum,i.e. €600.00 – €2,000.00 per week. That’s what’s wrong with this country – GRABBERS’ , and the ‘Unions’ head the list. For instance, the Gardai got €100 per week rise, the OAP’s got €5.00 per week rise. That’s 20 times more that the OAP’s. Is that justice?
have your say