WEBVTT - EU's Harkin on 'Significant Impact' of Brexit to Ireland(Audio)

0:00:03.440 --> 0:00:06.880
<v Speaker 1>Global business news twenty four hours a day at Bloomberg

0:00:06.880 --> 0:00:09.960
<v Speaker 1>dot com, the radio, plus mobile, LAFT and on your radio.

0:00:10.240 --> 0:00:14.520
<v Speaker 1>This is a Bloomberg Business flag from Bloomberg World Headquarters,

0:00:14.560 --> 0:00:18.560
<v Speaker 1>sim Charlie Pellatt. UK voters vote to leave the European Union.

0:00:18.760 --> 0:00:22.360
<v Speaker 1>Stock selling off around the globe. US stocks bouncing along

0:00:22.360 --> 0:00:25.920
<v Speaker 1>the bottom right now, SMP five hundred index down seventy

0:00:25.920 --> 0:00:28.840
<v Speaker 1>two points to two thousand forty one, a drop there

0:00:28.880 --> 0:00:31.080
<v Speaker 1>of three point four percent. We did see the pound

0:00:31.080 --> 0:00:33.839
<v Speaker 1>trading at a thirty year low. We've got the ten

0:00:33.880 --> 0:00:37.320
<v Speaker 1>uere yield one point five seven percent, Gold surging four

0:00:37.440 --> 0:00:40.080
<v Speaker 1>point six percent, up fifty eight dollars, the ounce to

0:00:40.960 --> 0:00:44.479
<v Speaker 1>one crude oil West Texas Intermediate now down five percent,

0:00:44.560 --> 0:00:47.960
<v Speaker 1>dropping to fifty three apparel to forty seven dollars fifty

0:00:47.960 --> 0:00:51.680
<v Speaker 1>eight cents. US equities lower across the board, SMP down

0:00:51.800 --> 0:00:54.080
<v Speaker 1>seventy two at two thousand forty had dropped there of

0:00:54.160 --> 0:00:57.840
<v Speaker 1>three point four percent. Nastack is down two oh three

0:00:57.920 --> 0:01:00.560
<v Speaker 1>now a drop of four point one percent, and Dow

0:01:00.600 --> 0:01:04.080
<v Speaker 1>Industrials down five ninety three points, a drop of three

0:01:05.440 --> 0:01:11.559
<v Speaker 1>I'm Charlie Pellett, and that's a Bloomberg Business Flash. You're

0:01:11.640 --> 0:01:15.679
<v Speaker 1>listening to Taking Stock with pim Box and Kapolna's on

0:01:15.760 --> 0:01:20.440
<v Speaker 1>Bloomberg Radio. As Britain stuns the world with the vote

0:01:20.480 --> 0:01:24.200
<v Speaker 1>to leave the European Union, what is next for the

0:01:24.240 --> 0:01:27.000
<v Speaker 1>European Union. Well, here to help us understand, this is

0:01:27.120 --> 0:01:32.360
<v Speaker 1>Marion Harken, European Union parliament member representing Ireland. Thank you

0:01:32.440 --> 0:01:35.800
<v Speaker 1>very much for being with us. Joining us from Sligo, Ireland. Marian,

0:01:35.880 --> 0:01:38.080
<v Speaker 1>thank you very much for being here. Tell us a

0:01:38.080 --> 0:01:40.920
<v Speaker 1>little bit about your reaction to the vote and then

0:01:41.000 --> 0:01:46.280
<v Speaker 1>what you perceive as the European Union's next move. Well,

0:01:46.400 --> 0:01:50.280
<v Speaker 1>there was shocked felt in Brussels today. I mean from

0:01:50.360 --> 0:01:53.720
<v Speaker 1>my own perspective, I was shocked that it actually happened.

0:01:53.760 --> 0:01:58.520
<v Speaker 1>But at another level I wasn't entirely surprised because to

0:01:58.600 --> 0:02:01.760
<v Speaker 1>some extent this was a bustin the establishment. To some

0:02:01.880 --> 0:02:05.120
<v Speaker 1>extent it was a vote about immigration, and to some

0:02:05.240 --> 0:02:09.280
<v Speaker 1>extent the English people in particular have been mildly your

0:02:09.280 --> 0:02:12.799
<v Speaker 1>a skeptic, shall we say, for the last twenty thirty years,

0:02:13.280 --> 0:02:17.320
<v Speaker 1>and you know, maybe at one level you could have

0:02:17.400 --> 0:02:20.440
<v Speaker 1>seen it's coming. But having said that, I think even

0:02:20.480 --> 0:02:23.600
<v Speaker 1>in the UK a lot of people are shocked that

0:02:23.680 --> 0:02:28.880
<v Speaker 1>it has come to this, and nobody knows the ramifications,

0:02:28.960 --> 0:02:31.880
<v Speaker 1>nobody knows the what's going to happen next, or where

0:02:31.960 --> 0:02:36.200
<v Speaker 1>we're going to go. And as you know, uncertainty won't

0:02:36.240 --> 0:02:39.360
<v Speaker 1>do do any benefit if you like, to the UK economy,

0:02:39.480 --> 0:02:43.040
<v Speaker 1>to the EU economy, and of course coming from Ireland,

0:02:43.800 --> 0:02:46.600
<v Speaker 1>we share a land border, the really the only land

0:02:46.639 --> 0:02:50.919
<v Speaker 1>border you know with the with the UK, and it's

0:02:50.919 --> 0:02:53.320
<v Speaker 1>going to have a huge impact on our economy as well.

0:02:54.080 --> 0:02:56.880
<v Speaker 1>And reports that Northern Ireland is already calling for a

0:02:56.919 --> 0:03:01.320
<v Speaker 1>border patial, well, there are report it's already that somebody's

0:03:01.440 --> 0:03:04.200
<v Speaker 1>I think shin Fain are talking about a border poll.

0:03:04.600 --> 0:03:07.960
<v Speaker 1>You have heard Nicola Sturgeon in Scotland saying that she's

0:03:08.040 --> 0:03:12.400
<v Speaker 1>looking at the possibility of having another referendum on Scottish

0:03:12.440 --> 0:03:15.920
<v Speaker 1>independence because of course Scotland voted overwhelmingly to stay in.

0:03:16.320 --> 0:03:20.040
<v Speaker 1>Northern Ireland also voted to stay and not overwhelmingly, but

0:03:20.120 --> 0:03:24.000
<v Speaker 1>it did vote to stay in. And the call now is,

0:03:24.320 --> 0:03:28.960
<v Speaker 1>you know, we need a border poll because that will

0:03:29.080 --> 0:03:32.760
<v Speaker 1>give residents in Northern Ireland the opportunity to stay in

0:03:32.800 --> 0:03:35.360
<v Speaker 1>the EU or to stay as part of the UK.

0:03:35.800 --> 0:03:37.920
<v Speaker 1>So you know that there's a whole These are just

0:03:38.000 --> 0:03:41.520
<v Speaker 1>some of the the ramifications within the United Kingdom itself,

0:03:41.520 --> 0:03:44.840
<v Speaker 1>but I mean the shockwaves are being felt around the globe.

0:03:44.920 --> 0:03:48.160
<v Speaker 1>So and also, of course, we we have a sense

0:03:48.200 --> 0:03:51.920
<v Speaker 1>here that you know, some politicians, shall we say, are

0:03:51.960 --> 0:03:55.120
<v Speaker 1>already smelling blood as it were, in the sense that

0:03:55.240 --> 0:03:59.200
<v Speaker 1>they now see this as an opportunity to begin the

0:03:59.400 --> 0:04:03.240
<v Speaker 1>stay stay aalizing the European Union, and they see this

0:04:03.280 --> 0:04:07.400
<v Speaker 1>as an opportunity to promote referenda maybe in other countries.

0:04:07.480 --> 0:04:10.000
<v Speaker 1>I'm not saying that's going to happen, but I'm saying

0:04:10.040 --> 0:04:14.960
<v Speaker 1>the UK has unfortunately opened a Pandora's box and none

0:04:15.000 --> 0:04:16.920
<v Speaker 1>of us know where it's going to go from here.

0:04:17.640 --> 0:04:21.480
<v Speaker 1>Marion Harkin as a member of the European Union Parliament's

0:04:21.520 --> 0:04:26.359
<v Speaker 1>Economic and Monetary Affairs Committee, what will the conversation be

0:04:26.480 --> 0:04:31.400
<v Speaker 1>like when you first gather, Well, I'd say a lot

0:04:31.440 --> 0:04:34.560
<v Speaker 1>of people will be, you know, wondering what is going

0:04:34.600 --> 0:04:37.400
<v Speaker 1>to happen next year, seeing what happened to Stirling today,

0:04:37.480 --> 0:04:41.960
<v Speaker 1>what's happening in the markets. The uncertainty is is our enemy,

0:04:42.080 --> 0:04:45.280
<v Speaker 1>as it were. We don't know, for example, when the

0:04:45.400 --> 0:04:48.880
<v Speaker 1>UK is going to trigger the process that will start

0:04:48.920 --> 0:04:52.080
<v Speaker 1>their exit. It's supposed to be at most a two

0:04:52.160 --> 0:04:55.000
<v Speaker 1>year process. They don't seem to be rushing to do this,

0:04:55.080 --> 0:04:59.560
<v Speaker 1>but already we hear from Brussels Seantage Yunker, who is

0:04:59.600 --> 0:05:03.000
<v Speaker 1>the President of the Commission and others are saying, you know,

0:05:03.160 --> 0:05:05.920
<v Speaker 1>we need to get on with this now. You know,

0:05:06.160 --> 0:05:09.240
<v Speaker 1>the British people have made their decision and we need

0:05:09.279 --> 0:05:13.679
<v Speaker 1>to know where we're going. So there is a real

0:05:13.920 --> 0:05:19.760
<v Speaker 1>sense of unknown territory, nobody expecting to find themselves in

0:05:19.839 --> 0:05:25.400
<v Speaker 1>this place, and instability as far as markets and that

0:05:25.440 --> 0:05:28.200
<v Speaker 1>are concerned. I really don't know how things are going

0:05:28.240 --> 0:05:30.560
<v Speaker 1>to settle down. I don't think anybody does. But I

0:05:30.640 --> 0:05:35.480
<v Speaker 1>think for me, as an Irish politician, we have serious

0:05:35.520 --> 0:05:40.200
<v Speaker 1>concerns about the fact that Britain. We export sixteen percent

0:05:40.520 --> 0:05:44.880
<v Speaker 1>of all our products to Britain and a very significant

0:05:44.880 --> 0:05:48.240
<v Speaker 1>part of that is from small indigenous Irish business, so

0:05:48.360 --> 0:05:51.960
<v Speaker 1>it's going to affect our economy significantly. And also, of

0:05:52.000 --> 0:05:54.479
<v Speaker 1>course we share a landborder with Northern Ireland. We do

0:05:54.560 --> 0:05:57.920
<v Speaker 1>a lot of trades there. So if Britain isn't part

0:05:58.000 --> 0:06:01.039
<v Speaker 1>of the Single Market, if it's nor in Ireland isn't

0:06:01.080 --> 0:06:03.960
<v Speaker 1>part of the single market that's going to have a major,

0:06:04.160 --> 0:06:08.719
<v Speaker 1>major dislocating effect on our economy, which is just crawling

0:06:08.800 --> 0:06:12.080
<v Speaker 1>out of a whole as it were after the two

0:06:12.160 --> 0:06:15.279
<v Speaker 1>thousand and seven two thousand and that crash. Well Marian

0:06:15.440 --> 0:06:18.400
<v Speaker 1>explained to us, then if you could in a little

0:06:18.400 --> 0:06:22.360
<v Speaker 1>more detail with the laws and regulations are on trade

0:06:23.160 --> 0:06:29.800
<v Speaker 1>um among countries. Uh for example, if if if Britain leaves,

0:06:30.040 --> 0:06:32.320
<v Speaker 1>couldn't Ireland just say okay, fine, we'll make our own

0:06:32.360 --> 0:06:35.039
<v Speaker 1>little we'll have you know, a biletal trade agreement will

0:06:35.160 --> 0:06:37.719
<v Speaker 1>have the same kind of rules, the same you know,

0:06:37.760 --> 0:06:41.720
<v Speaker 1>a manner of restrictions or fewer restrictions. Couldn't couldn't Ireland

0:06:41.880 --> 0:06:44.880
<v Speaker 1>and the UK just say, you know, we're gonna We're

0:06:44.920 --> 0:06:48.200
<v Speaker 1>gonna trade as we always did. No, you can't. If

0:06:48.200 --> 0:06:51.000
<v Speaker 1>you're a member of the European Union, you are, you

0:06:51.080 --> 0:06:54.040
<v Speaker 1>have access to the single market, to the five million,

0:06:54.279 --> 0:06:57.680
<v Speaker 1>but you cannot do a bilateral trade agreement as an

0:06:57.720 --> 0:07:02.640
<v Speaker 1>individual country if only is with the European Union. And

0:07:02.640 --> 0:07:06.560
<v Speaker 1>and that's the situation and what we don't know yet

0:07:06.960 --> 0:07:10.000
<v Speaker 1>it's what the UK will look for because with all

0:07:10.040 --> 0:07:12.680
<v Speaker 1>of the discussion and the debate that went on nobody

0:07:12.720 --> 0:07:16.000
<v Speaker 1>ever said what would happen if the UK voted out.

0:07:16.520 --> 0:07:20.040
<v Speaker 1>There is the possibility of the type of agreement Norway has,

0:07:20.080 --> 0:07:22.560
<v Speaker 1>but they won't want that because that will mean number one,

0:07:22.880 --> 0:07:26.720
<v Speaker 1>they will have to pay a contribution to the EU budget.

0:07:27.000 --> 0:07:29.560
<v Speaker 1>Number two, they'll have to accept free movement to people,

0:07:29.800 --> 0:07:31.920
<v Speaker 1>and number three they'll have to comply with the u

0:07:32.080 --> 0:07:34.600
<v Speaker 1>USE on which they have no vote. Those were some

0:07:34.720 --> 0:07:37.280
<v Speaker 1>of the very reasons that they left. So if they

0:07:37.320 --> 0:07:40.280
<v Speaker 1>don't have that kind of agreement, they could have some

0:07:40.400 --> 0:07:45.240
<v Speaker 1>other type of free trade association agreement which wouldn't give

0:07:45.280 --> 0:07:49.920
<v Speaker 1>them full access to services, etcetera. And other than that,

0:07:50.120 --> 0:07:52.800
<v Speaker 1>then you're looking at just some sort of agreement. Und

0:07:53.000 --> 0:07:55.000
<v Speaker 1>w t oh did be in the same position as

0:07:55.320 --> 0:07:58.920
<v Speaker 1>as China or you know, other countries like that. So

0:07:58.960 --> 0:08:01.840
<v Speaker 1>the British have to a what they're looking for, what

0:08:02.000 --> 0:08:06.040
<v Speaker 1>they want, and then the negotiations will begin with the

0:08:06.240 --> 0:08:12.360
<v Speaker 1>twenty seven other member states and that's where the uncertainty is.

0:08:12.720 --> 0:08:16.080
<v Speaker 1>And if you know, I mean David Cameron himself said

0:08:16.600 --> 0:08:19.920
<v Speaker 1>in an interview with Andrew Marr on the thirteenth of

0:08:20.000 --> 0:08:23.559
<v Speaker 1>June of this year that he didn't believe that the

0:08:23.920 --> 0:08:28.000
<v Speaker 1>British would accept the Norway models which allows the access

0:08:28.040 --> 0:08:31.680
<v Speaker 1>to the Single Market, but at a price that he

0:08:31.720 --> 0:08:34.400
<v Speaker 1>didn't believe they would accept that, and that probably they

0:08:34.400 --> 0:08:36.480
<v Speaker 1>would have come out of the Single Market. So what

0:08:36.600 --> 0:08:39.920
<v Speaker 1>that means in simple terms is you could be I'm

0:08:39.920 --> 0:08:42.199
<v Speaker 1>not saying you will be, but you could be looking

0:08:42.240 --> 0:08:49.040
<v Speaker 1>at the UK having to negotiate free new free trade agreements.

0:08:49.080 --> 0:08:53.840
<v Speaker 1>And equally, because the EU has negotiated trade agreements with

0:08:53.920 --> 0:08:57.200
<v Speaker 1>the UK as parts of of the EU, we might

0:08:57.240 --> 0:09:01.960
<v Speaker 1>also be looking at the same situation. So huge uncertainty

0:09:02.280 --> 0:09:05.320
<v Speaker 1>as to what the future is as far as trade

0:09:05.400 --> 0:09:10.640
<v Speaker 1>is concerned. I mean, personally and devastated at what's happened today.

0:09:10.800 --> 0:09:12.880
<v Speaker 1>I don't know why it's happened. I do as there

0:09:12.880 --> 0:09:15.960
<v Speaker 1>are loads of reasons, but you know this is it's

0:09:16.000 --> 0:09:18.800
<v Speaker 1>bad news. It's bad news for the UK, for Europe,

0:09:19.040 --> 0:09:22.280
<v Speaker 1>it's bad news for Ireland, and I actually think globally

0:09:22.360 --> 0:09:26.440
<v Speaker 1>it's not a good situation because it weakens the EU.

0:09:26.520 --> 0:09:29.839
<v Speaker 1>I mean, who's happy about this? Very few people. Marie

0:09:29.880 --> 0:09:33.120
<v Speaker 1>Lepenne is happy because she sees this as perhaps a

0:09:33.200 --> 0:09:38.840
<v Speaker 1>catalyst for her presidential campaign in France and she would

0:09:38.840 --> 0:09:42.280
<v Speaker 1>like to see France out of the EU. You know,

0:09:42.640 --> 0:09:49.000
<v Speaker 1>the greatest peacetime you know, movement if you like. That's

0:09:49.000 --> 0:09:53.400
<v Speaker 1>what the EU is and and we risk the stabilizing it.

0:09:53.640 --> 0:09:56.760
<v Speaker 1>And it's the greatest piece project the world has ever known.

0:09:57.200 --> 0:10:00.480
<v Speaker 1>And and you know we can't risk these stay of aalizing.

0:10:00.480 --> 0:10:03.120
<v Speaker 1>It's because we know what the history of Europe has

0:10:03.160 --> 0:10:05.520
<v Speaker 1>been and we don't want the future to be like

0:10:05.600 --> 0:10:10.920
<v Speaker 1>the past. Marian Harkin, European Union Member of Parliament, just

0:10:11.040 --> 0:10:15.120
<v Speaker 1>quickly for financial companies and institutions. What happens to the

0:10:15.120 --> 0:10:18.079
<v Speaker 1>European Central Bank and the European Union's move to harmonize

0:10:18.080 --> 0:10:24.080
<v Speaker 1>financial regulations, well, I think that will continue. I mean,

0:10:24.200 --> 0:10:28.360
<v Speaker 1>Mario Draggy hasn't spoken yet about the situation. We know

0:10:28.440 --> 0:10:32.120
<v Speaker 1>that Mark Kearney from the the Bank of England has

0:10:32.160 --> 0:10:35.000
<v Speaker 1>said he do whatever is necessary in print as much

0:10:35.040 --> 0:10:37.760
<v Speaker 1>money as is necessary. Draggy has said the same thing

0:10:37.800 --> 0:10:41.240
<v Speaker 1>about saving the Euro. But because this is such a

0:10:41.320 --> 0:10:44.720
<v Speaker 1>new situation, because this is a situation that nobody ever

0:10:44.960 --> 0:10:49.199
<v Speaker 1>envisaged really happening. At the end of the day, we

0:10:49.520 --> 0:10:52.480
<v Speaker 1>are now an unknown territory and we have to wait

0:10:52.520 --> 0:10:54.600
<v Speaker 1>to hear what the likes of Draggy will have to

0:10:54.640 --> 0:10:57.080
<v Speaker 1>say me and Harkin thank you so very much for

0:10:57.200 --> 0:11:00.959
<v Speaker 1>joint is. She sounds a bit heartper been about this movement,

0:11:01.040 --> 0:11:05.280
<v Speaker 1>very concerned about what it means for European commerce, European politics,

0:11:05.760 --> 0:11:08.520
<v Speaker 1>Ireland and the UK in particular. She is a member

0:11:08.520 --> 0:11:12.160
<v Speaker 1>of the Ewes parliament Economic and Monetary Affairs Committee. This

0:11:12.240 --> 0:11:13.120
<v Speaker 1>is Boomberg Radio