Michael Noonan says Brexit won't bring Budget woes

Finance Minister stresses that main effects will be felt by the UK...

Minister for Finance Michael Noonan has moved to reassure people that Brexit will not affect Ireland's Budget 2017.

According to the Irish Independent, he has insisted that there will be no immediate tax hikes or spending cuts to face later this year, and that the fiscal space available to the State will remain unchanged for the next year at least.

Noonan said:

"The referendum was in the UK. The main effects are in the UK, it voted to leave."

While dangers potentially lie in the medium term, the Finance Minister felt that they can be contained if Britain strikes a deal to retain access to the single market and a new common travel area agreement between the UK and Ireland comes into effect.

This morning, British Chancellor of the Exchequer George Osborne had warned the UK that higher taxes and lower public spending was on the way.

Noonan's comments were designed to defuse such worries on this side of the Irish Sea.

The Limerick TD has also taken the time to offer a critical opinion on both the European Commission and statistical agency Eurostat.

He called on the bodies to "straighten out" how strict budgetary rules on member state spending is applied, arguing that the current situation favours the larger nations.

Noonan said that the likes of France and Italy enjoyed greater leniency because they had previously broken rules, while the former "gives two fingers to the rules anyway."