EC implements action plan for no-deal Brexit

The European Commission announced on Wednesday that it was implementing its contingency plan for a no-deal Brexit, to cover areas including financial services, air transport, customs and climate policy.

The EC, which added that the UK will not have a say in the measures, said the temporary measures would be adopted unilaterally by the European Union.

"Today’s package includes 14 measures in a limited number of areas where a 'no-deal' scenario would create major disruption for citizens and businesses in the EU27."

The commission said it considers it "essential and urgent to adopt these measures today" to ensure that the contingency measures can be up and running on the 30 March Brexit date "in order to limit the most significant damage caused by a 'no-deal' scenario in these areas".

In the financial sector the EC said the measures included 12-month "equivalence" for central clearing of derivatives, a 24-month period of equivalence to ensure no disruption in central depositories services for EU operators currently using UK operators, plus a 12-month clause to facilitate novation of certain over-the-counter derivatives contracts where a contract is transferred from a UK to an EU27 counterparty.

In transport, a proposal was made for regulation to ensure 12-month provision of certain air services between the UK and the EU, with another to cover nine months extension of the validity of certain aviation safety licences.

To cover customs, all relevant EU legislation on the importation and exportation of goods will continue to apply to goods moving between the EU and the UK, with the EC on Wednesday adopting two technical measures, including a proposal for a rule to add the UK to the list of countries for which a general authorisation to export dual use items is valid throughout the EU.

"These measures will not – and cannot – mitigate the overall impact of a 'no-deal' scenario, nor do they in any way compensate for the lack of stakeholder preparedness or replicate the full benefits of EU membership or the terms of any transition period, as provided for in the withdrawal agreement," the commission said.

In its communication, the EC also invited member states to "take a generous approach to the rights of UK citizens in the EU, provided that this approach is reciprocated by the UK", in particular to ensure that UK citizens legally residing in the EU on the date of withdrawal will continue to be considered legal residents.