‘No-deal’ Brexit: European Commission takes stock of preparations ahead of the June European Council (Article 50)

brexit_.jpg

(John Cameron, Unsplash)

This article is brought to you in association with the European Commission.


Ahead of the June European Council (Article 50), the European Commission has today taken stock – in its fifth Brexit Preparedness Communication – of the European Union’s Brexit preparedness and contingency measures, particularly in light of the decision taken on 11 April by the European Council (Article 50), at the request of and in agreement with the United Kingdom, to extend the Article 50 period to 31 October 2019.

In light of the continued uncertainty in the United Kingdom regarding the ratification of the Withdrawal Agreement – as agreed with the UK government in November 2018 – and the overall domestic political situation, a ‘no-deal’ scenario on 1 November 2019 very much remains a possible, although undesirable, outcome.

Since December 2017, the European Commission has been preparing for a ‘no-deal’ scenario. To date, the Commission has tabled 19 legislative proposals, 18 of which have been adopted by the European Parliament and Council. Political agreement has been reached on the remaining proposal – the contingency Regulation on the EU budget for 2019 –, which is expected to be formally adopted later this month. The Commission has also adopted 63 non-legislative acts and published 93 preparedness notices. In light of the extension of the Article 50 period, the Commission has screened all these measures to ensure that they continue to meet their intended objectives. The Commission has concluded that there is no need to amend any measures on substance and that they remain fit for purposeThe Commission does not plan any new measures ahead of the new withdrawal date.

The Commission recalls that it is the responsibility of all stakeholders to prepare for all scenarios. Given that a ‘no-deal’ scenario remains a possible outcome, the Commission strongly encourages all stakeholders to take advantage of the extra time provided by the extension to ensure that they have taken all necessary measures to prepare for the UK’s withdrawal from the EU. Today’s Communication provides details on the extensive preparations in the EU27 in areas such as citizens’ residence and social security entitlements, customs and taxation, transport, fishing, financial services as well as medicinal products, medical devices and chemical substances.

A ‘no-deal’ scenario

In a ‘no-deal’ scenario, the UK will become a third country without any transitional arrangements. All EU primary and secondary law will cease to apply to the UK from that moment onwards. There will be no transition period, as provided for in the Withdrawal Agreement. This will obviously cause significant disruption for citizens and businesses and would have a serious negative economic impact, which would be proportionally much greater in the United Kingdom than in the EU27 Member States.

As outlined by President Juncker in the European Parliament on 3 April 2019, should a ‘no-deal’ scenario occur, the UK would be expected to address three main separation issues as a precondition before the EU would consider embarking on discussions about the future relationship. These are: (1) protecting and upholding the rights of citizens who have used their right to free movement before Brexit, (2) honouring the financial obligations the UK has made as a Member State and (3) preserving the letter and spirit of the Good Friday Agreement and peace on the island of Ireland, as well as the integrity of the internal market.

The EU’s ‘no-deal’ preparedness and contingency work: continued vigilance in selected areas

Preparing for the UK’s withdrawal is a joint effort by public administrations and economic operators. The Commission has held extensive technical discussions with the EU27 Member States both on general issues of preparedness and contingency work and on specific sectorial, legal and administrative preparedness issues. The Commission has also completed a tour of the capitals of the 27 EU Member States. The visits showed a high degree of preparation by Member States for all scenarios.

Today’s Communication focuses on areas in which continued and particular vigilance is needed in the coming months:

Citizens’ residence and social security entitlements

  • Member States had prepared or adopted national contingency measures before 12 April 2019 to ensure that UK nationals and their non-EU family members could remain legally resident in the immediate period after a ‘no-deal’ withdrawal.
  • To provide further clarity, the Commission has provided an overview of residency rights in the EU27 Member States (see here, including direct links to national preparedness websites). This will continue to be updated.

Medicinal products, medical devices and chemical substances

  • Only a small number of centrally authorised medical products (around 1%) had not been brought into regulatory conformity by 12 April 2019 The European Medicines Agency (EMA) is now close to completing the regulatory compliance process for products that are authorised centrally.
  • For products that are authorised at national level, more work remains to be done to bring remaining medicinal products into regulatory compliance by 31 October 2019.
  • The transfer of certificates for medical devices from UK notified bodies to EU27 notified bodies is ongoing.
  • As regards chemical substances, by the end of April 2019, REACH registrations of 463 substances had been transferred to the EU27 Member States, while 718 still remained registered only by registrants established in the United Kingdom. The European Chemicals Agency (ECHA) opened a ‘Brexit window’ in REACH-IT to take the necessary steps to transfer their REACH registrations ahead of the withdrawal date.

Customs, indirect taxation and border inspection posts

  • In the field of customs and indirect taxation, the Commission organised numerous technical meetings, and published guidance notes on customs, value-added tax (VAT) and excise ahead of the previous withdrawal date.
  • National administrations have made significant investments in infrastructure and human resources, primarily in Member States that are the main entry and exit points for the EU’s trade with the United Kingdom. Member States are also working with the Commission in its training and communication efforts to reach out to economic operators and stakeholders in general.
  • In the field of sanitary and phytosanitary controls (SPS), EU27 Member States have set up new Border Inspection Posts (BIPs) or extending existing ones at entry points of imports from the United Kingdom into the EU.

Transport

  • The contingency Regulation on air transport includes a specific mechanism for EU airlines to comply with the EU majority ownership and control requirements. This process is underway and the Commission is in regular contact with national authorities.
  • In the rail transport sector, operators that have not taken the necessary steps to obtain the relevant EU27 documents should do the necessary to obtain them.

Fishing activities

  • In the fisheries sector, the Commission has taken swift action to implement the EU contingency Regulations. The Commission and Member States have worked together to collect information in the appropriate format so that authorisation requests by EU vessels to access UK waters can be handled as soon as the contingency Regulation on fishing authorisations becomes applicable.
  • The Commission has also worked closely with Member States to adapt their Operational Programmes so that resources under the European Maritime and Fisheries Fund can be used for temporary cessation, if needed and appropriate.

Financial services

  • While in the run-up to 12 April 2019, firms had made significant progress with their contingency planning, some residual issues remain. Insurance firms, payment services providers and other financial service operators which remain unprepared regarding certain aspects of their business (for example contract management and access to infrastructures) are strongly encouraged to finalise their preparatory measures by 31 October 2019. The Commission is working with EU level and national supervisors to ensure that firms’ contingency plans are fully implemented, and it expects that UK supervisors will not prevent firms from implementing such plans.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Macron’s Presidency: what the young generation’s expectations are

Health without borders: How we can Improve International Collaboration in Health Care

3 reasons we should all care about biodiversity

ISIL’s ‘legacy of terror’ in Iraq: UN verifies over 200 mass graves

What is hydroponics – and is it the future of farming?

Why are the Balkans’ political leaders meeting in Geneva this week?

Do all you can to resolve climate change ‘sticking points’ UN chief urges South-East Asian leaders, in Bali

Chernobyl nuclear disaster-affected areas spring to life, 33 years on

The Italian crisis may act as a catalyst for less austerity

End ‘political opportunism’ that’s letting hate speech flourish, urges top UN genocide official

Migration crisis update: Greece could probably say goodbye to Schengen really soon

Philippe de Backer of ALDE at European Business Summit 2015 stresses: “Reinvent your business”

UN food relief agency airlifts aid to DR Congo province hit by Ebola outbreak

IQ scores have been falling for decades, new study finds

Capital markets selloff: The financial moguls send messages to monetary authorities

Globalization 4.0 must build a better world for working people

TTIP is not dead as of yet, the 15th round of negotiations in New York shouts

It’s time we took a seat ‘at your table’: Guterres calls on world youth to keep leading climate emergency response

More answers from Facebook ahead of Parliament hearing today

The creative technology and its advancements

Brexit: European Commission intensifies preparedness work and outlines contingency action plan in the event of a no deal scenario with the UK

EU budget for 2021-2027: Commission welcomes provisional agreement on Horizon Europe, the future EU research and innovation programme

A Sting Exclusive: “Consumer expectations for the 2015 UN summit on climate change”, Director General of BEUC Monique Goyens outlines from Brussels

EU budget 2021-2027: Commission calls on leaders to set out a roadmap towards an autumn agreement

Governments and non-state actors need to take urgent action to meet Paris Agreement goals

Travel the world, find yourself

‘No safe way’ into battle-scarred Afghan city of Ghazni to deliver aid as traumatized children search for parents

This project is turning abandoned fishing gear into volleyball nets

5 ways to fast-track the transition to a carbon neutral world

‘Ground-breaking innovation’ needed in cities, where battle for sustainable development will be won or lost, says UN agency chief

Why we need a moderate approach to moderating online content

‘Global sisterhood’ tells perpetrators ‘time is up’ for pandemic of violence

Medical students as the critical link to address climate change

‘Passport to dignity’ that schools represent may expire fast, without emergency funding warns UN Palestine refugee agency

Fostering intergenerational solidarity and cooperation through age-friendly environments: the right answer to Europe’s demographic challenge

Prisoner executions in Belarus ‘simply unacceptable’, says UN rights body

These charts show where the world’s refugees came from in 2017 – and where they’re heading

Why saving our forests should be a global priority

Consumer product quality: Parliament takes aim at dual standards

EU Parliament: No EU-US trade agreement without safe data

China hopes EU Commissioner De Gucht drops super anti-dumping tariff on solar panels

Environmental labelling, information and management schemes are central to the circular economy

‘Safe Eurobonds’: a new trick to betray the south euro area countries

Moves to create a Kosovo army have ‘deteriorated relations’ with Serbia: UN peacekeeping chief

Although Greece is struggling to pay salaries and pensions Varoufakis is “optimistic”; the Sting reports live from EBS 2015

OECD sees global growth slowing, as Europe weakens and risks persist

Israel @ MWC14: Israel The Start App Nation

Backed by UN, Asia-Pacific countries to advance space technology for ‘development transformation’

UN member states express their will to tackle global migration but specific actions are still missing

‘Virtual Biopsy’ device detects skin tumours in 15 minutes

Fleeing Venezuela: MEPs to probe humanitarian conditions in Colombia and Brazil

CDU-SPD agree the terms for EU’s Banking Union

The ECB again takes care of the bankers not the people

European Parliament calls on Russia to end occupation of Georgian territories

A Sting Exclusive: “Change is challenge, change is opportunity”, Commissioner Bienkowska cries out live from European Business Summit 2015

This new way of understanding disease is changing medicine

UN mission welcomes Afghan government’s announcement of Eid holiday ceasefire

The EU responds to US challenges by fining Apple with €13 billion

Climate change will force us to redefine economic growth

European Commissioner for Youth wants young people to be at heart of policy making

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s