Hollande agrees on special status for Border

In a significant boost to Ireland’s efforts to deal with the fallout from the British vote to leave the EU, French president François Hollande yesterday agreed that the peace process and the Common Travel Area should have a special status in future negotiations between the EU and the UK.

The Irish Times understands Taoiseach Enda Kenny will travel to London next week to meet the new British prime minister, Theresa May. He will again stress the need to protect the peace process through preserving the open border between North and South.

In talks with Mr Kenny at Government Buildings yesterday, Mr Hollande repeatedly expressed impatience with the British delay in leaving the EU, but struck a note regarded as helpful by senior Irish officials, in recognising the special position of Ireland.

Found a place

“I do recognise that there is a special situation in Ireland,” Mr Hollande said. “It’s a special situation that has to be found a place in the negotiations.”

He added: “The relations that exist between Ireland, Northern Ireland the UK, that has to be negotiated under the discussions that will be undertaken once the notification for withdrawal has been made.”

The official communique issued by the two leaders noted that the British should trigger the article 50 process to leave the EU “as soon as possible”.

This is a noticeable change of emphasis from the Taoiseach, who warned as recently as Monday about attempts to isolate the British and push them into a “harsh exit deal”.

Officials denied that there was any contradiction between the two statements, but accepted there was a difference in emphasis.

Privately, Government sources point out Ireland is seeking to maintain a delicate balance between the UK and EU positions.

“When we say ‘as soon as possible’, it doesn’t necessarily mean the same as when the French say it,” said one senior official.

Emphasising the Government’s priority to protect the gains of the peace process, Mr Kenny said he would not accept the imposition of a “hard” EU border on the island.

“We do not favour a hard border, obviously,” he said. “We do not wish to see a European border from Dundalk to Derry. That would not be acceptable.”

The Common Travel Area, he said, existed long before the EU was formed. “We believe we can and we will be able to preserve the Common Travel Area,” the Taoiseach said.

Both leaders expressed the view that the UK should activate article 50, with Mr Hollande stressing in his remarks to journalists at a press conference that “this thing shouldn’t drag on”.

“If you want to know France’s position, the sooner these negotiations are open the better. And the shorter they are, even better,” the president said, through an interpreter.

Cutting short his intended visit to Dublin, Mr Hollande returned to Paris, after calling on President Michael D Higgins, for a meeting with Mrs May.

Budget implications

As the fallout from Brexit continues, the focus in Brussels is beginning to turn to the budgetary implications.

As the second-biggest contributor to the EU budget after Germany, Britain’s net contribution last year was about €10 billion. Its departure will leave a financial hole, which may have to be filled by higher national contributions from the remaining 27 member states.

Alternatively, the EU may decide to reduce the size of the EU budget, a development that would have a knock-on impact on high-expenditure EU areas such as the Common Agricultural Policy, from which Ireland benefits greatly.

EU officials confirmed that a final decision on Ireland’s budget contribution will not be made until October, when Ireland’s official figures are confirmed by Eurostat, the EU’s statistical agency.