Ireland has demonstrated its determination to battle with other EU nations over any businesses shaken loose as a result of the Brexit vote, by setting out its case to provide a new home for the London-based pan-European banking regulator.
Michael Noonan, the Republic’s finance minister, announced that Dublin wanted to be considered an alternative location for the European Banking Authority (EBA), which oversees banks across the EU.
The Irish government also gave formal approval for a proposal to relocate the European Medicines Agency (EMA) to the country.
Irish politicians fear economic disaster could hit the nation, following the 23 June referendum, due to the close links between the Irish and UK economies.
Noonan said: “While the UK continues to be a full member of the EU until the negotiations for their exit have been completed, preparations must be made for eventualities such as the relocation of certain European agencies like the European Banking Authority.
“Ireland has a significant financial services sector, efficient transport links to other European capitals and the capacity to absorb the European Banking Authority’s re-location to Ireland.”
He said Ireland was an “ideal new home” for the EBA, which employs about 160 banking experts in its headquarters in Canary Wharf, London. The regulator moved into its new building in 2014 and its lease runs until 2020.
There is stiff competition to house the EBA, which officials in Brussels had said in the immediate days after the referendum result would need to leave London. Amsterdam, Frankfurt, Milan and Paris are all regarded as possible new homes for the regulator.
Dublin has also being trying to woo businesses which might be looking for a new home when the UK leaves the EU. Within hours of the EU referendum result, Martin Shanahan, the head of Ireland’s Industrial Development Authority, wrote letters to 1,200 companies outlining Ireland’s role as a gateway to Europe.
Ireland was also quick to make clear it was interested in housing the EMA, which with a a staff of 890 oversees pan-European drug approvals since 1995 from its headquarters in Canary Wharf in London. Health minister Simon Harris will set out a detailed proposal for the medicines regulator next year.
Ireland is closely linked to the UK. It is Britain’s fifth biggest trading partner while Britain is Ireland’s largest export partner. Irish companies sell £15bn of product to the UK each year and could be hampered by the weak level of sterling.
It is not clear how many banks will leave London as a result of Brexit but Anthony Browne, chief executive of the British Bankers Association. told the Observer that they could begin moving early next year.
