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Michael McDowell proposes designating the north an EU 'special economic zone'

Former tánaiste Michael McDowell has argued for designating the north as a special economic zone. Picture by Mal McCann
Former tánaiste Michael McDowell has argued for designating the north as a special economic zone. Picture by Mal McCann Former tánaiste Michael McDowell has argued for designating the north as a special economic zone. Picture by Mal McCann

FORMER tánaiste Michael McDowell has urged the Dublin government to explore the potential for designating the north as a 'special economic zone'.

He also raised the prospect of an Irish confederation, where both parts of the island share EU membership.

The Progressive Democrats founder claimed such a move would reduce damage from Brexit by maintaining north-south trade and helping preserve Northern Ireland's agricultural economy.

Mr McDowell's remarks in his Sunday Business Post column came as EU leaders adopted guidelines for Brexit negotiations with the UK government.

The former tánaiste said the post-Brexit economic outlook north of the border was bleak because the region's traditional industrial base had been eroded and the Tories would seek to cut generous levels of farm subsidies.

Mr McDowell said he believed in Irish unity but that it was not a realistic goal in the short to medium term.

"The notion that a border poll will produce a united Ireland – in the sense of a unitary republic – in the short or medium term is illusory," he said.

"Irish unity, I think, is far more likely to happen by stages than by a once-off movement of the north from being part of Britain into a unitary Irish state."

He claims a German-style unification scenario is unlikely but an "intermediate" possibility is the creation of an Irish confederation in which the two parts of Ireland would agree to share a single membership of the EU.

"The Republic and a Northern Irish state would be partners in an EU state membership," he said.

"The northern partner might even retain a linkage with the crown of some type – perhaps along the Canadian model."

Mr McDowell argued that Britain's subsidy to the north dulls the appetite for unity but warned that severe Tory cuts may transform traditional loyalties.

"That is why the real possibility of seeking special economic zone status for Northern Ireland should be explored by Dublin in the context of the Brexit process," he said.

"If the north-south trading relationship and the north's agricultural economy were preserved in a post-Brexit arrangement, the putlook for the northern economy may look a lot less bleak."