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26 September 2018

Financial Times: EU makes contingency plans for no-deal Brexit


Brussels is making plans to pass emergency rule changes to cope with a no-deal Brexit in as little as five days, a fast-track process that allows the EU to leave big decisions on contingency measures until a late stage. 

The European Commission’s accelerated method for passing the legal acts, which was explained to member states on Wednesday, will permit the EU to prepare for a worst-case scenario without undermining negotiations with the UK on a withdrawal deal. 

The measures are considered a last resort by Brussels, which still hopes to strike a deal with the UK. Transport, customs and financial services are seen as priority areas where temporary failsafes are likely to be needed to prevent chaos in the event that Britain leaves without an agreement. The plans would buy time while businesses and regulators adjust to the new legal reality.

Should it be used, the compressed 5-day process would avoid a public tussle between EU institutions and member states over the way in which preparations are made, or the details of the measures to mitigate the worst effects of Brexit. 

Such an approach is potentially controversial, however, because it would concentrate power in the hands of the Commission, while limiting the input of member states or the European Parliament. Some EU diplomats are also doubtful that all necessary rule changes could be achieved through such a fast-track approach. [...]

Full article on Financial Times (subscription required)



© Financial Times


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