With 8 weeks to go until the United Kingdom’s withdrawal from the European Union on 31 October 2019, the Commission has today – in its 6th Brexit preparedness Communication – reiterated its call on all stakeholders in the EU27 to prepare for a ‘no-deal’ scenario. 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, remains a possible, although undesirable, outcome.
It is in this spirit that the European Commission has today published a detailed checklist to help those businesses that trade with the UK to make final preparations. In order to minimise disruption to trade, all parties involved in supply chains with the UK – regardless of where they are based – should be aware of their responsibilities and the necessary formalities in cross-border trade. This builds on previous Communications and 100 stakeholder notices, which cover a broad range of sectors.
In addition to this, the Commission has proposed to the European Parliament and the Council to make targeted technical adjustments to the duration of the EU’s ‘no-deal’ contingency measures in the area of transport. The Commission has also proposed to mirror, for the year 2020, the existing 2019 contingency arrangements for the fisheries sector and for the UK’s potential participation in the EU budget for 2020. These measures are necessary given the decision to extend the Article 50 period to 31 October 2019.
Finally, the Commission has proposed that the European Solidarity Fund and the European Globalisation Adjustment Fund are available to support businesses, workers and Member States most affected by a ‘no-deal’ scenario. These proposals need to be agreed by the European Parliament and the Council.
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 use the extra time provided by the extension of the Article 50 period to ensure that they have taken all necessary measures to prepare for the UK’s withdrawal from the EU.
Technical adjustment of specific contingency measures to take account of the UK’s withdrawal date of 31 October 2019
On 11 April 2019, the European Council (Article 50) extended the Article 50 period to 31 October 2019. This was done at the request of, and in agreement with, the United Kingdom.
In light of this extension, the Commission has screened all the EU’s preparedness and contingency measures to ensure that they are still fit for purpose. The Commission has concluded that these measures continue to meet their objectives and therefore there was no need to amend any of them on substance. However, the Commission has today proposed to make some technical adjustments to specific contingency measures in order to take account of the new Article 50 timeline.
These adjustments are in three main areas:
- A Regulation ensuring basic road freight and road passenger connectivity (Regulation (EU) 2019/501): The Commission has today proposed to extend this Regulation until 31 July 2020, reflecting the logic and the duration of the original Regulation.
- Basic air connectivity (Regulation (EU) 2019/502): the Commission has today proposed to extend this Regulation until 24 October 2020, reflecting the logic and duration of the original Regulation.
2. Fishing activities
- Regulation on fishing authorisations: the Commission has today proposed to extend the approach in the adopted contingency Regulation (Regulation (EU) 2019/498) with a similar measure for 2020, providing a framework for EU and UK fishermen to maintain access to each other’s waters for 2020.
3. The EU Budget
- The Commission has today proposed to extend the approach of the contingency Budget Regulation for 2019 (Council Regulation (EU, Euratom) 2019/1197) with a similar measure for 2020. This means that the UK and UK beneficiaries would remain eligible to participate in programmes under the EU budget and to receive financing until the end of 2020 if the UK accepts and fulfils the conditions already set out in the 2019 contingency regulation, pays its budget contributions for 2020 and allows the required audits and controls to take place.
Providing EU financial support to those most affected by a ‘no-deal’ Brexit
The Commission announced in its fourth Brexit Preparedness Communication of 10 April 2019 that technical and financial assistance from the EU can be made available in certain areas to support those most affect by a ‘no-deal’ scenario.
In addition to existing programmes and instruments, the Commission has today:
- Proposed to extend the scope of the European Solidarity Fund to cover the serious financial burden that may be inflicted on Member States by a ‘no-deal’ scenario, subject to certain conditions.
- Proposed to ensure that the European Globalisation Adjustment Fund is available to support workers and self-employed persons who are made redundant as a result of a ‘no-deal’ scenario, subject to certain conditions.
In the agriculture sector, the full spectrum of existing instruments for market support and direct financial support to farmers will be made available to mitigate the worst impact on agri-food markets. For more immediate support, for example for smaller companies with large exposure to the United Kingdom, the EU’s State aid rules offer flexible solutions for national support measures.
The Commission and Ireland continue working together, in the context of the unique situation on the island of Ireland and their twin objectives of protecting the integrity of the internal market while avoiding a hard border, to identify arrangements both for contingency solutions for the immediate aftermath of a withdrawal without an agreement and for a more stable solution for the period thereafter. The backstop provided for by the Withdrawal Agreement is the only solution identified that safeguards the Good Friday Agreement, ensures compliance with international law obligations and preserves the integrity of the internal market.
Preparing for 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.
Since December 2017, the European Commission has been preparing for a ‘no-deal’ scenario. To date, the Commission has tabled 19 legislative proposals, all of which have now been adopted by the European Parliament and Council. The Commission has also adopted 63 non-legislative acts and published 100 preparedness notices. The Commission does not plan any new measures ahead of the new withdrawal date.
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.
Every single business that trades with the UK, both in goods and services, will be affected by a ‘no-deal’ scenario. The Commission has today published a “Brexit preparedness checklist”, which all relevant businesses should examine carefully. Businesses should now be ready to fulfil all the required formalities.
Today’s Communication provides an overview of preparedness work in those areas where continued and particular vigilance is needed. They include citizens’ rights, border formalities and trade, medicinal products, medical devices and chemical substances, financial services and fisheries.
For more information: what should I do in a ‘no-deal’ scenario?
For the period immediately after a withdrawal without an agreement, the Commission has set up a call centre for Member State administrations, giving them rapid access to the expertise of the Commission services by establishing a direct channel of communication, also for the purposes of facilitating the necessary coordination between national authorities. To know more about how to prepare for a ‘no-deal’ scenario, EU citizens can contact Europe Direct for any questions. Call Freephone 00 800 6 7 8 9 10 11 from anywhere in the EU, in any official EU language.
Relocation of unaccompanied children from Greece to Portugal and Finland
On 7 and 8 July, 49 unaccompanied children were relocated from Greece to Portugal and Finland as part of a scheme organised by the Commission and the Greek Special Secretary for Unaccompanied Minors, in partnership with UN agencies and the European Asylum Support Office.
These two operations mark the beginning of the main phase of the scheme. With preparatory work coordinated by the Commission now completed and coronavirus-related travel restrictions easing, relocations will proceed progressively over the next months. The next transfers will take place later in the month, with 18 children finding new homes in Belgium, 50 in France, 106 (including siblings and parents) in Germany, 4 in Slovenia and 2 in Lithuania.
While the scheme started with an aim to relocate at least 1,600 children and young people, Member States have now pledged up to 2,000 places. The scheme is focused primarily on unaccompanied children, but will also include children with severe medical conditions and their core family members. At the same time, durable solutions for the protection and care of those unaccompanied children that will stay in Greece must also be found. The Commission stands ready to provide increased support for Greece and Member States in this respect.
Vice-President for Promoting our European Way of Life, Margaritis Schinas, said: “In a tangible expression of support to Greece, Portugal and Finland will soon open their doors to 49 children as part of our programme to relocate unaccompanied minors. This is the embodiment of the European spirit of solidarity and I truly commend the Member States taking part. We cannot, however, rely on ad hoc solutions forever. No Member State should be left alone to shoulder a disproportionate responsibility. The aim of the New Pact on Migration and Asylum will be to ensure that solidarity is provided on a permanent basis.”
Commissioner for Home Affairs, Ylva Johansson, said: “We have worked tirelessly to make sure that relocations can take place despite complications caused by the outbreak of the coronavirus. Seeing that these 49 children will start a new life in Portugal and Finland shows our efforts are bearing fruit. Our services are working well with Greek authorities and international organisations on this scheme, turning pledges into action.”
Greek Alternate Minister of Migration Policy Giorgos Koumoutsakos said:“49 unaccompanied minors have departed yesterday and today to start a new life in another EU Member State, in Portugal and Finland. I want to thank Portugal and Finland for the support and for this tangible gesture of solidarity. I also want to express my gratitude to the European Commission for the continuous help and encouragement so as to make possible the relocation of 1,600 unaccompanied minors to other Member States.”
As of mid-June, there were over 4,800 unaccompanied children in Greece. As part of the Action Plan for immediate measures to support Greece, the Commission proposed to relocate up to 1,600 children as part of a scheme supported by the European Asylum Support Office (EASO), the International Organization for Migration (IOM), the United Nations High Commissioner for Refugees (UNHCR) and the United Nations International Children’s Emergency Fund (UNICEF).
To date, 11 Member States and Norway (Belgium, Bulgaria, France, Croatia, Finland, Germany, Ireland, Portugal, Luxembourg, Lithuania and Slovenia) are participating in the scheme. The first relocation operations took place in April, when 12 children were relocated from Greece to Luxembourg and 47 to Germany. On 17 June, 8 unaccompanied children were relocated to Ireland, following a bilateral agreement that predates the scheme. Finally, 6 unaccompanied children who could not be relocated to Germany in April as they were not fit for travel at the time were transferred to Germany on 26 June.
Relocations under the scheme will be carried out progressively in groups of various sizes to ensure adequate reception capacity in the receiving Member States. In addition to its coordinating role, the European Commission is financially supporting most preparatory and pre-departure steps in Greece, as well as the transfer costs, while Member States can also request funding for participating in the scheme (€6,000 per person transferred).
Commission invests €1 billion in innovative clean technology projects
The Commission is launching the first call for proposals under the Innovation Fund , one of the world’s largest programmes for the demonstration of innovative low-carbon technologies, financed by revenues from the auction of emission allowances from the EU’s Emissions Trading System. The Innovation Fund will finance breakthrough technologies for renewable energy, energy-intensive industries, energy storage, and carbon capture, use and storage. It will provide a boost to the green recovery by creating local future-proof jobs, paving the way to climate neutrality and reinforcing European technological leadership on a global scale.
Executive Vice-President Frans Timmermans said: “This call for proposals comes at just the right time. The EU will invest €1 billion in promising, market-ready projects such as clean hydrogen or other low-carbon solutions for energy-intensive industries like steel, cement and chemicals. We will also support energy storage, grid solutions, and carbon capture and storage. These large-scale investments will help restart the EU economy and create a green recovery that leads us to climate neutrality in 2050.”
For the period 2020-2030, the Innovation Fund will allocate around €10 billion from the auctioning of allowances under the EU Emissions Trading System, in addition to undisbursed revenues from the Innovation Fund’s predecessor, the NER 300 programme.
The first call will provide grant funding of €1 billion to large-scale projects for clean technologies to help them overcome the risks linked to commercialisation and large-scale demonstration. This support will help new technologies to reach the market. For promising projects which are not yet ready for market, a separate budget of €8 million is set aside for project development assistance.
The call is open for projects in eligible sectors from all EU Member States, Iceland and Norway. The funds can be used in cooperation with other public funding initiatives, such as State aid or other EU funding programmes. Projects will be evaluated according to their potential to avoid greenhouse gas emission, innovation potential, financial and technical maturity, and potential for scaling up and cost efficiency. The deadline for submission of applications is 29 October 2020. Projects can apply via the EU Funding and Tenders portal where more details on the overall procedure are available.
The Innovation Fund aims to create the right financial incentives for companies and public authorities to invest now in the next generation of low-carbon technologies and give EU companies a first-mover advantage to become global technology leaders.
The Innovation Fund will be implemented by the Executive Agency for Networks and Innovation (INEA), while the European Investment Bank will provide project development assistance to promising projects that are not ready for full application.
Member States need to do more to ensure the good functioning of the EU Single Market
Commission is publishing the Single Market Scoreboard 2020, which shows that despite improvements in certain areas, Member States need to do more to ensure the proper functioning of the Single Market. As experienced during the coronavirus crisis, a well-functioning single market is crucial for ensuring the free movement of supplies across the EU and vital for the swift recovery of the EU economy. The results of this year’s Scoreboard, which is available as an online tool, highlight the importance of the renewed focus on implementation and enforcement outlined by the Commission’s Enforcement Action Plan adopted in March 2020. Above all, a fully functioning single market needs a partnership between the Commission and the Member States. The newly created Single Market Enforcement Task Force will be one of the key tools to foster such a collaborative approach between Commission and Member States.
The Single Market Scoreboard provides a detailed overview of how EU single market rules were applied in the European Economic Area (EEA) in 2019. It evaluates how Member States have performed as regards market openness, governance tools as well as in specific policy areas, based on a number of selected indicators. The findings are presented in the form of a “traffic light” chart, by attributing red (below average), yellow (average) and green (above average) cards.
In comparison to the previous year, this year’s Scoreboard notes a steady situation in most Member States, but observes a small decline in overall performance. In total, the Scoreboard awarded 158 green cards (153 in 2018), 107 yellow cards (137 in 2018) and 59 red cards (59 in 2018). The best performing countries in 2019 were Latvia, Cyprus, Denmark, Estonia, Finland, and Slovakia, while least improvements were observed in Spain, Italy, France and Austria.
Other key findings of the 2020 Single Market Scoreboard include:
- Uneven enforcement of single market rules: while Member States significantly improved the transposition of EU legislation, the number of infringement procedures has grown, partly due to incompletely or incorrectly transposed EU legislation. The Scoreboard notes a particular improvement in the enforcement of consumer-related legislation, thanks to the strong coordinating role of the European Commission and the European Consumer Centres Network.
- Expanded administrative cooperation among Member States: the use of the Internal Market Information system (IMI), which supports Member States’ administrative cooperation in 16 policy and legal areas, has increased by 52% and now covers 59 cross-border administrative procedures.
- Steady increase in use of tools helping citizens and businesses benefit from the single market: the number of citizens using Your Europe information portal and the Your Europe Advice services has drastically increased (+48% for Your Europe with 35 million visits and +52% for Your Europe Advice with 35 thousand enquires). The caseload of SOLVIT, an informal problem-solving tool, increased by 4% overall.
- More work needed in specific policy areas: further improvements are needed to ensure the free movement of professionals, especially to ensure more decisions recognising professional qualifications. The public procurement performance of Member States continues to be uneven, in particular as regards contracts awarded to single bidders.
The Single Market Scoreboard is an online tool, which aims to monitor the performance of the Member States by using clear indicators, with the objective to improve the functioning of the Single Market.
In particular, the annual Single Market Scoreboard evaluates how Member States:
- implement EU rules;
- create open and integrated markets (e.g. public procurement, trade in goods and services);
- handle administrative issues concerning foreign workers (e.g. professional qualifications);
- cooperate and contribute to a number of EU-wide governance tools (e.g. Your Europe portal, SOLVIT, and EURES )
The Single Market Scoreboard evaluates performance in three policy areas, two areas regarding market openness and integration, and 12 governance tools.
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