A potential extension to the Brexit negotiation process is an important development which Ireland would not block, according to the Minister for Finance.

Paschal Donohoe was speaking at Leinster House alongside his French counterpart, Bruno Le Maire, this afternoon.

In a joint press conference, Mr Le Maire said that if there are calls for an extension to Article 50 we have to understand what for.

Mr Donohoe said ratifying the Withdrawal Agreement already struck was "the best and only way forward", but added that Ireland would not block a potential extension.

The British Prime Minister, Theresa May, has promised to give MPs a vote on extending Brexit negotiations or withdrawing from the EU without a deal if her plan is rejected next month.

A spokesperson for the Taoiseach has said that the Government's goal is to see a Brexit deal agreed.

They said that short of the UK deciding to stay in the European Union, it's the best outcome for Ireland.

"In the absence of that, we are open to an extension of the Article 50 deadline in order to avoid a crash out on 29 March. But we will still need to reach an agreement, whether or not an extension is in place," the spokesperson said.

Mr Le Maire said there is no link between French support for Ireland over Brexit, and the issue of taxing giant digital corporations.

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Mr Le Maire told RTÉ News: "There is no linkage. Mixing different issues with Brexit would be a huge political mistake. The Irish people should know that they can rely on the full support of France."

He said Brexit could have "important consequences" for the Irish economy. But it will also have consequences for other EU states. "We are all in the same boat, and we need to work together," he said.

Mr Donohoe said Ireland and France will work together in the OECD to bring forward a reform of corporation tax to deal with the rise of digital companies.

He said change in the area of digital taxation was coming. He also praised French leadership on the issue of digital tax.

The two ministers also discussed a Franco-German proposal for a "budget instrument for the 19 countries of the Euro area".

Mr Le Maire spoke of a budget instrument that would invest in infrastructure and national economic reform programmes.

Mr Donohoe said Ireland was in favour of an instrument that could help countries hit by extreme economic difficulties, but said he would study the Franco-German document that was agreed last week.

Euro area states are due to make decisions on the budget instrument in June.

Meanwhile, a spokesperson for the Taoiseach has said that the Government's goal is to see a Brexit deal agreed.

They said that short of the UK deciding to stay in the European Union, a deal is the best outcome for Ireland.

"In the absence of that, we are open to an extension of the Article 50 deadline in order to avoid a crash out on 29 March. But we will still need to reach an agreement, whether or not an extension is in place," the spokesperson said.

Earlier, the Tanáiste told the Dáil that in a no-deal Brexit scenario it would be impossible to maintain "the current seamless arrangements between the EU and UK across the range of sectors" currently facilitated by our common EU membership.

Separately, Labour Party Leader Brendan Howlin has welcomed the move by the British Labour Party to support a people's vote on Brexit.

He said that it would most likely take the form of people being asked to vote for either the UK and EU Withdrawal Agreement or to remain in the EU.

Mr Howlin said he did not now believe that there would be a no-deal Brexit on 29 March, but he warned that "we're not out of the woods yet".

He said given the political chaos in the UK over the last two years, Ireland cannot afford to be complacent.

Mr Howlin said in the event of a hard Brexit, the Omnibus Bill legislation would mark just the beginning of extensive parliamentary work, and he predicted the Dáil would be in "legislative mode" for years on this subject.