EU prepares for no-deal Brexit
The future of EU and UK relations is still unclear; but, the EU has now announced its plans should the UK leave next year with no deal in place. These include temporary measures, which it hopes will reduce some of the impact of the problems that could arise. Of course, if the UK leaves without a deal in place, there would be disruption to certain services. This means that both sides are now preparing for the worst-case scenario.
The EU has warned that if the UK leaves without a deal, there could be:
- Financial service providers would no longer being able to provide services or products in EU member states.
- Delays on transporting goods between the EU and UK due to more checks, as well as the introduction of taxes and customs duties.
- No guarantee of getting the same terms for existing transport links.
The Commission has set out measures that would be put in place should no deal be agreed by March next year. This would be to limit the damage caused to other European countries. These would affect a number of sectors, including visas and travel, transport, financial services, data protection laws, and other.
Some of the measures announced by the Commission are:
- Financial services regulations would be recognised across the EU for between one and two years.
- Those carrying freight between the UK and the EU would be able to continue doing so without a permit.
- Flights between the EU and UK would be allowed to continue for a year. This would “ensure basic connectivity”.
- It would be urged that remaining member states to take a “generous approach” to the residency rights of UK citizens, “provided that this approach is reciprocated by the UK”.
However, the Commission noted that, although these measures would allow for a smoother transition in a no-deal Brexit scenario, it’s less than the UK would get under the proposed offer in the recent Withdrawal Agreement. This has yet to be voted on by the UK Parliament. Furthermore, these measures would be under a strict time limit, and could end without consulting the UK.