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World

Ireland ups spending in "Brexit-proof" budget

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Opening sequence

World

Ireland ups spending in "Brexit-proof" budget

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COMING UP:Ireland ups spending in "Brexit-proof" budget

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Transcript

00:00:00
>> Island determined to Brexit proof its economy with its latest budget. The republic's Finance Minister announcing a cut to taxes and increased spending on Tuesday all to further boost a strong economic recovery, the Irish economy set to grow faster than any other in the EU for the third year running.
00:00:18
But it's also the most vulnerable to Britain's decision to leave the EU. Reuters correspondent Padraic Halpin explains why.>> Britain is such a close trading partner. For indigenous Irish firms, 44% of their exports go to Britain. And for many firms, Britain is the biggest and most important export market.
00:00:37
And already we're seeing a huge dive in the value of Stirling, it's already squeezing profit margins for a lot of exporters.>> June's referendum results already led to a cut in Irish growth forecasts this year and next. Finance Minister Michael Noonan announcing a lower VAT rate for the tourism sector to help cushion a slow down in British visitors.
00:00:55
It was struggling with the weaker pound, and tax relief to farmers dependent on the UK export market, but the message didn't please everyone.>> The main Irish opposition party called the Package and the main lobby group for businesses, the Irish Business and Employment Confederation And said that there just wasn't enough here to make any real difference to those exporting firms, who are really suffering because of the depreciation in Sterling.
00:01:21
>> The budgets will now have to be passed through Parliament. The new minority government, which includes independents as ministers, needs the cooperation of the main opposition party to pass it. The opposition's Finance Minister told Reuters last week he was confident it would go through.