Ryanair says UK should remain in European Union

Ryanair has called on the UK to vote to stay in the European Union in the Brexit referendum to be held on June 23rd.

The airline said the EU needs to reform, to reduce bureaucracy and become more efficient for the benefit of Europe’s consumers.

However, it said the best way to achieve this reform is for the UK to lead from within the European Union and not from outside where like Norway, the UK will still pay, will still obey the rules, but will have no influence over decision making.

Ryanair employs more than 3,000 people across its 13 airport bases in the UK, and carries more than 35 million customers between the UK and Europe each year.

Ryanair chief executive Michael O’Leary yesterday said the airline was “absolutely clear that the UK economy and its future growth prospects are stronger as a member of the European Union than they are outside of the EU.”

“Leaving Europe won’t save the UK money or red tape because like Norway the UK will still have to contribute to Europe, and obey its rules if it wants to continue to trade freely with Europe.”

He said UK voters should vote yes to Europe and yes to the reformed Europe that UK prime minister David Cameron has delivered.

The call came as broker Investec identified Ryanair as one of the Irish stocks that would suffer as a result of Brexit uncertainty weighing on sterling. Other companies that could be negatively affected include C&C and Origin Enterprises, according to the analysis.

The broker also pointed out that sterling weakness could benefit a number of Irish stocks , notably newly-merged Paddy Power Betfair, DCC and Grafton, which have large UK operations.

Investec’s “core scenario” is that UK voters will choose to stay within the EU. Its report suggests that stocks suffering due to an export headwind created by sterling weakness in the run-up to the vote would feel a “tailwind” in the event of the UK electorate rejecting Brexit.

Sterling sank to a seven-year low against the dollar yesterday as companies and investors rushed to insure themselves against the chances of a Brexit, which HSBC said could knock a fifth off the value of pound. Against the euro, it depreciated 0.8 per cent to 79.21 pence and touched its weakest level since December 2014.

Irish bond yields rose meanwhile, with the gap to French peers hitting its widest in eight months, both on Brexit fears and in anticipation of tomorrow’s election.

With yields across the euro zone broadly stable, the Irish move stood out, with 10-year yields rising as much as 7 basis points to a one-week high of 1.07 per cent.

(Additional reporting: Reuters/Bloomberg)