Almost 10 years ago, the UK voted to leave the European Union. It was the first of what has now become a long line of geopolitical shocks spanning wars, pandemics, energy price rises and more.
For Irish businesses, it has been a challenging period to navigate, but overall the Irish economy has proved remarkably resilient over the last 10 years.
Rather than recession or low growth, the key challenge has instead proved to be the development of housing and infrastructure. These are problems with roots that pre-date the Brexit referendum, and are subjects for another column.
Recent geopolitical events are causing challenge and uncertainty for the Irish economy, and another round of energy price rises for business. It’s too early to say what the medium-term impact will be for Ireland, but clearly the risk of a global downturn has increased substantially.
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Despite the strength of the past decade, the Irish economy will, at some point, face another recession. This inevitability is why the “rainy day fund” was established in 2019, and it’s important to consider other ways to insulate ourselves against future shocks.
In July, Ireland will assume the presidency of the European Union, and this is another key moment that provides both Ireland and the EU with an opportunity to become more resilient for the future.
One of the ways in which we can do this is to seek a closer relationship with the UK, which remains a vitally important trading partner, with €50 billion of two-way trade on an annual basis between the UK and Ireland. In general, the logistics surrounding trade and economic co-operation are functioning in line with the principles that have been agreed under the Windsor Framework.
Now that these arrangements are bedded in there are opportunities to reduce some frictions, while also respecting the Brexit arrangements.
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One such opportunity is in the area of joint procurement. Prior to Brexit, it was possible under the European procurement directives for UK and Irish public bodies to jointly procure.
There are many areas where joint procurement adds value, whether through the increased leverage introduced by increased scale, or the greater collective expertise of a larger procurement team.
This presidency offers the opportunity to take Irish-UK energy co-operation to the next level and agree a proper compact that can accelerate the buildout of renewable energy in the Irish Sea
Joint procurement is of obvious relevance between Ireland and the UK because of our physical proximity, but also because of the similarities in our legal structure. For public bodies across a range of sectors, joint procurement would be of considerable benefit.
However, it is not possible to carry out joint procurement without firstly putting in place an intergovernmental agreement. This possibility should be explored.
News that British chancellor of the exchequer Rachel Reeves will attend a meeting of EU finance ministers in Dublin during the presidency is highly positive.
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Others should be invited too, including British energy security and net zero minister Ed Miliband. Making energy a priority area for closer co-operation is a no-brainer, as has been demonstrated very clearly over the last number of weeks.
More energy independence is vital for the long-term economic security of Ireland, Britain and Europe. The good news is that the building blocks are already in place for more progress in this area, which can make the Irish Sea a fulcrum of renewable power.
Two interconnectors (the latest opened in 2025) already ensure two-way power flow between the islands, while a memorandum of understanding designed to facilitate closer co-operation is already in place.
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Exciting projects to realise the Irish Sea opportunity have begun, including the Rosslare Europort Offshore Renewable Energy Hub, which is being led by Irish Rail at land it owns at Rosslare.
The project aims to develop a suite of service facilities supporting infrastructure that will be required to make offshore wind farms work. It is a fantastic start, but many more such projects will be required to fulfil the potential that exists on both sides of the Irish Sea.
This presidency offers the opportunity to take Irish-UK energy co-operation to the next level and agree a proper compact that can accelerate the buildout of renewable energy in the Irish Sea, to the benefit of all parties, in a way that avoids unnecessary duplication of resources and co-ordinates the grid and planning logistics needed to deliver as quickly as possible.
Inviting UK ministers to selected informal presidency events is a good start on the journey to bring Ireland and the UK closer together, but the real test is whether the presidency ultimately leads to the delivery of demonstrably successful outcomes.
The benefits of the UK being invited to the EU presidency programme shouldn’t be underestimated. With the UK’s long-standing capabilities in a wide range of infrastructural areas, a closer partnership is in the best interests of Ireland and the EU and can help us address the infrastructure challenges we face today.
Aidan Scollard is a partner at Baker Tilly Ireland
