Ireland to run budget deficit of up to 1.5% in no deal Brexit

Ireland presented two budget strategies for 2020 on Tuesday, a preferred option that would see it's budget surplus grow if its neighbour Britain leaves the EU in an orderly way, and a no-deal Brexit scenario forecasting a deficit to absorb the shock.

Ireland's budget is due to be presented on Oct. 8, three weeks before Britain is due to leave the bloc. Finance Minister Paschal Donohoe handed the cabinet two options to choose from in September. No announcement was made of a scenario if Britain delays Brexit or calls it off altogether.

The finance ministry has previously forecast that a disorderly Brexit would curb Ireland's economy by up to 4.25 percentage points of gross domestic product by 2023 compared to an orderly British exit. Donohoe said he would allow the public finances to run a deficit of between 0.5 and 1.5% of GDP next year in the no-deal scenario.