Sunday 22 October 2017

Brexit is likely to boost funding for Ireland's serious infrastructure shortage

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Gretchen Friemann

Brexit is likely to boost funding for Ireland's serious infrastructure shortage as the European Central Bank reins back on investments in the UK in favour of its smaller neighbour.

Andrew McDonnell, the vice president of the European Investment Bank, the EUs development bank, delivered the upbeat news in an address to the Oireachtas Finance and Public Expenditure and Reform Committee this morning.

Mr McDonnell, a former adviser to Taoiseach Enda Kenny, said the EIB would "do less in the UK" as a result of Brexit and also raised the question of whether its exit would trigger a return of its deposit in the bank.

The UK holds a 16 pc stake in the EIB but Mr McDowell said there were no provision for the "share capital paid in" to be returned as the bank had not envisaged the departure of a member state.

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