🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

In no-deal Brexit, EU seeks to avoid short-term crash

Published 19/12/2018, 13:05
© Reuters. EU and Union flags overlap during an anti-Brexit protest opposite the Houses of Parliament in London

By Philip Blenkinsop and Robin Emmott

BRUSSELS (Reuters) - The European Union set out short-term measures on Wednesday to limit disruption to air traffic, financial services and trade if Britain left the bloc without a deal next March.

However, in a sign that a no-deal Brexit would not be business as usual, there would be new checks to currently frictionless trade, which could lead to tail-backs near ports and delays to deliveries.

Every shipment of live animals or animal products from Britain would face controls at EU borders and Britons would lose the right to travel with their pets using EU pet passports.

The European Union would only allow British trucks to carry goods into the bloc, assuming also Britain allowed EU trucks in, until the end of next year.

The European Commission, which presented the plans, also warned of higher charges for using credit or debit cards because EU rules limiting such fees would no longer apply.

Asked if the European Union was offering Britain a relatively attractive no-deal option, Commission Vice President Valdis Dombrovskis told a news conference the measures were simply designed to limit disruption.

Dombrovskis said that the best way to avoid harming the British economy would be for Britain to stay in the European Union. In the case of Brexit, the withdrawal agreement agreed with the British government was better than no deal.

"In the case of no deal, doing some preparation to limit damage is better than not doing any preparation at all," he said.

The Commission's measures cover transport, financial services, customs and border checks, taxation and climate change and will need to be backed by the European Parliament and the 27 countries remaining in the EU.

The EU executive proposed allowing British airlines to fly to and from EU airports for 12 months, assuming Britain offered equivalent rights to EU airlines.

The bloc would also recognise UK clearing houses for financial derivatives for a year.

The Commission, which is coordinating the European Union's response to Brexit, also called on the 27 other EU governments to allow British nationals living in their countries to stay and work from March 29, the day Britain is due to leave.

© Reuters. EU and Union flags overlap during an anti-Brexit protest opposite the Houses of Parliament in London

The Commission was keen to stress that the measures were limited in time. It also said that the contingency measures would not apply to British territory Gibraltar, which has an active financial services sector.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.