FILE PHOTO - Ireland's Minister for Finance and Public Expenditure Paschal Donohoe arrives at a European Financial Forum event in Dublin, Ireland February 13, 2019. REUTERS/Clodagh Kilcoyne

DUBLIN (Reuters) - British Prime Minister Theresa May’s decision to open Brexit talks with the opposition Labour Party has reduced the chances of the UK crashing out of the European Union without a deal, Irish Finance Minister Paschal Donohoe said on Wednesday.

“The statement last night from Prime Minister May was a very significant moment” that reduces the chances of a no-deal Brexit, Donohoe told Ireland’s RTE radio. But he said the risk of a no-deal Brexit remained significant.