Brexit poses a threat to Ireland’s aircraft-leasing business

The Irish economy has been a source of concern for the EU since 2008 banking crisis. Though they are still struggling, they did manage to bring in significant revenue in with the enactment of low corporate tax rates (12.5%) which led lots of foreign corporations to place their headquarters in Dublin, some major ones being Facebook, Apple, etc.

This article takes a look at how Brexit might affect the Irish economy by explaining the potential impact it could have on Ireland's largest industry: aircraft finance. Ireland is a prominent hub for aircraft leasing and financing, and this industry accounted for majority (approx. 76%) of the 26% growth that Ireland saw in 2015. They are currently leasing 40% of their fleet. Ireland had always been attractive to corporations due to their low corporate tax rates (12.5%) and their proximity to London.  If the world corporate centers start moving away from London to Hong Kong or Singapore this may have an adverse effect on the aircraft finance industry. The EU has been trying to push for more leveled taxes for a while now but Britain had always been a negotiating voice in regards to Ireland and their taxing policies, and without Britain they may not be able to continue to keep such low corporate tax rates.

When Dan O'Brien, the Irish Chief Economist from the Institute of International and European Affairs came to visit last year he spoke expansively about Brexit and touched on how the Irish economy was dependent on Britain being a part of the EU. He talked about how without Britain in the EU, it will become very German dominated and given how Britain was the closest US ally, this will weaken transatlantic ties as well. The majority of Irish exports go to the US (as presented by the The Irish Times graph) and any weakening of those ties may be fatal to their economy.

Ireland will have to deal with a lot of uncertainty over the next two years and their performance will affect the EU as a whole, they will have to adapt to the changing geopolitical situations to maintain stability.