PREPARATIONS for a possible no-deal Brexit are included in the programme for a new Irish government agreed by Fianna Fáil, Fine Gael and the Greens.
The British government has ruled out seeking an extension to the transition period which allows continued access to the EU single market while trade talks take place.
But with just six months left to negotiate the complex deal, failure to secure agreement on future arrangements could have a massive economic impact on Ireland north and south.
A draft programme for government agreed by the leaders of Fianna Fáil, Fine Gael and the Green Party has now been put to party members.
If approved, Micheál Martin would become taoiseach at the end of June and serve until December 2022, when the post would be rotated to Leo Varadkar.
Sinn Féin, which won the popular vote in February's general election but finished one seat short of Fianna Fáil, described the prospect of an unprecedented coalition between the two civil war parties as an "attempt to deny change".
The draft programme for government includes a recovery plan to repair the economic damage of the coronavirus crisis, with proposals to increase the state pension age to 67 deferred and no increases in income tax or the Universal Social Charge.
The Greens have been brought on board with a series of environmental concessions.
The document also pledges to "work towards a consensus on a shared island" in which all traditions are mutually respected, including establishing a dedicated unit within the Department of the Taoiseach.
And it says the coalition will work to protect the island from the worst effects of Brexit, including ensuring all sectors are "prepared for all possible outcomes".
This would include prioritising support for vulnerable sectors and "work to ensure the essential UK landbridge remains a viable and efficient route to market for Irish goods".
"In the absence of a trade deal, Brexit may be a significant further strain on businesses already struggling with the challenges brought by Covid-19."
British prime minister Boris Johnston said yesterday he believed a deal could be concluded by the end of the year, as both sides agreed "new momentum" was needed to get negotiations back on track.
However, European Council chief Charles Michel warned that the EU would not be pressured into buying a "pig in a poke".
