EU frees up disaster funding for possible no-deal Brexit

Its official: EU officials are now treating no-deal Brexit as a potential disaster scenario, with emergency funds authorized to help businesses, workers and regulatory systems in EU27 countries hit hard by a disorderly departure of the U.K.

The European Commission on Wednesday stepped up its no-deal preparations and put forward a plan allowing access to two special funds to help address the possible economic impact of a no-deal Brexit.

Under the new proposal, the EU would “extend the scope of the European Solidarity Fund to cover serious financial burden inflicted on Member States directly imputable to a withdrawal without an agreement and that could not be avoided by preparing in advance.”

Assistance from the European Solidarity Fund would include “support to state aid schemes for businesses, measures to preserve existing employment and ensure the functioning of border, customs and sanitary and phytosanitary controls,” the Commission wrote in its communication, adding that it is also proposing “ensuring that the European Globalisation Adjustment Fund is available to support workers made redundant as a consequence of a withdrawal without an agreement, subject to certain conditions.”

The EU executive also warned that companies and citizens should be prepared for a no-deal scenario, publishing a preparedness checklist for businesses, and proposed technical adjustments in the form of a regulation ensuring basic road freight and road passenger connectivity, a regulation on basic air connectivity, and a regulation on fishing authorizations.

“The short time remaining and the political situation in the United Kingdom have increased the risk that the United Kingdom will withdraw on that date without an agreement,” the Commission wrote.

“In line with the approach that the European Council (Article 50) has emphasised throughout the process, all actors must continue to prepare for all possible outcomes. All actors should therefore now make any necessary final adjustments to their plans in relation to a withdrawal without an agreement on 1 November 2019,” it added.

The Commission also outlined possible extra support for the agricRead More – Source

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