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.
EU steps up economic partnership with Kenya to boost job creation
Today, the European Commission announced two new programmes totalling €31 million to boost investment and create jobs in Kenya.
In Nairobi, European Commissioner for International Partnerships Jutta Urpilainen said: “We have a close and valued partnership with Kenya, driven by common objectives and aligned with the Africa-Europe Alliance for Sustainable Investment and Jobs and Kenya’s Big Four Agenda. I’m delighted to announce these new programmes today, which will deepen our economic partnership, boost Kenya’s economic potential, improve the investment climate, and create jobs. They are further evidence of our mutually beneficial cooperation to promote sustainable development to eradicate poverty.”
The two programmes will support strategic dialogue and strengthen the EU-Kenya economic partnership:
- €26 million will be directed at reforms of Kenya’s public finances to promote economic stability, improve service delivery and tackle poverty.
- €5 million will target economic cooperation and national policy reforms. It will also provide technical support for implementing Kenya’s Vision 2030 and ‘Big 4′ agenda.
During her visit to Kenya, Commissioner Urpilainen held talks with, amongst others, President Uhuru Kenyatta and acting Treasury Minister Ukur Yatani to discuss future bilateral cooperation between Kenya and the EU. She also gave a keynote speech at the 9th Summit of the Heads of State and Government of Africa, the Caribbean and the Pacific (ACP) and met young leaders to exchange with them on political, economic and social issues and learn about their priorities for Kenya’s development. On Sunday, she visited the Kalobeyei refugee settlement, where the EU Emergency Trust Fund for Africa works with UN partners to ensure that refugees and the host community live together peacefully, have access to social services and develop economic ties to build sustainable livelihoods.
The EU’s cooperation with Kenya amounts to €435 million for the period 2014-2020. The country also benefits from the EU Emergency Trust Fund for Africa – with over €58.3 million for 2015-2019.
In 2018, the European Union and its Member States present in Kenya signed the second phase of their Joint Programming strategy, supporting the priorities of the Kenyan government’s ‘Big 4′ Agenda, which seeks to boost manufacturing, food and nutrition, security, affordable housing and universal health coverage.
The first European Joint Cooperation Strategy (2014 – 2017) was aligned with Kenya’s National Development Plan (Vision 2030).
Agreement on linking the emissions trading systems of the EU and Switzerland
As ministers gather at the COP25 in Madrid to discuss the rules for international carbon markets, the EU and Switzerland finalised the process that allows for the link of their emissions trading systems to enter into force. As of 2020 allowances from both systems can be used for compliance to compensate for emissions occurring in either system. The Linking Agreement between the EU and Switzerland is the first of its kind, and demonstrates that emissions trading systems can pave the way to broader international carbon markets.
Executive Vice-President Frans Timmermans said: “The Linking Agreement between the EU and Switzerland, which also covers the aviation sector, sends a strong signal that we can create broader and more comprehensive carbon markets with benefits to our climate and environment.”
There are significant benefits to linking carbon markets. By expanding the market and increasing the availability of emission reduction opportunities, the cost-effectiveness of the linked systems can be increased and their liquidity enhanced, thus resulting in better burden sharing, more efficient emissions reductions, and decreased overall compliance costs. The European Green Deal will strongly support these principles, underlining that with linked carbon markets we can bring carbon prices in different countries closer together, which in turn may reduce carbon leakage risks. Linking also strengthens cooperation between parties with binding targets and encourages others to take action, as well as to support global cooperation on climate change and the development of a global carbon market.
The EU ETS Directive allows for linking, provided both systems are compatible, mandatory and have an absolute emission caps. These conditions for linking have been laid down in the Annexes to the Linking Agreement and will ensure that both parties meet these requirements.
Negotiations on the Linking Agreement between the EU and Switzerland started in 2011. The linking agreement was signed at the end of 2017 and will enter into force on 1 January 2020.
Aviation Safety: EU Commission adopts new EU Air Safety List
The European Commission today updated the EU Air Safety List, the list of airlines that do not meet international safety standards, and are therefore subject to an operating ban or operational restrictions within the European Union. The EU Air Safety List seeks to ensure the highest level of air safety for Europeans and all other passengers travelling in the European Union.
There is positive news for Gabon as all airlines certified in Gabon have been released from the list following improvements to the aviation safety situation in that country. However, the Armenian Civil Aviation Committee has been put under heightened scrutiny because of signs of a decrease in safety oversight.
Commissioner for Transport Adina Vălean said: “Today’s decision illustrates our continuous efforts to offer the highest level of safety. Not only to European travellers, but to travellers worldwide, because aviation safety knows no border or nationalities. I am pleased to announce that the European Commission was able today to clear all Gabonese air carriers from the EU Air Safety List. Gabon was on the List already since 2008, so it is very good that we can recognise the efforts the aviation safety authorities in Gabon have made.”
The EU Air Safety List not only helps to maintain high levels of safety in the EU, but also helps affected airlines and countries to improve their levels of safety, in order for them to eventually be taken off the list. In addition, the EU Air Safety List has become a major preventive tool, as it motivates countries with safety problems to act upon them before a ban under the EU Air Safety List would become necessary.
Following today’s update, a total of 115 airlines are banned from EU skies:
- 109 airlines certified in 15 states, due to a lack of safety oversight by the aviation authorities from these states;
- Six individual airlines, based on safety concerns with regard to these airlines themselves: Avior Airlines (Venezuela), Iran Aseman Airlines (Iran), Iraqi Airways (Iraq), Blue Wing Airlines (Suriname), Med-View Airlines (Nigeria) and Air Zimbabwe (Zimbabwe).
An additional three airlines are subject to operational restrictions and can only fly to the EU with specific aircraft types: Air Koryo (Democratic People’s Republic of Korea), Air Service Comores (the Comoros) and Iran Air (Iran).
Today’s update of the Air Safety List is based on the unanimous opinion of the aviation safety experts from the Member States who met from 20 to 21 November 2019 under the auspices of the EU Air Safety Committee (ASC). This Committee is chaired by the European Commission with the support of the European Union Aviation Safety Agency (EASA). The update equally got the support from the European Parliament’s Transport Committee. Assessment is made against international safety standards, and notably the standards promulgated by the International Civil Aviation Organization (ICAO).
The Commission is constantly looking at ways to improve aviation safety, notably through collaborative efforts with aviation authorities worldwide to raise global safety standards. With this in mind, the Commission, through EASA, will implement two cooperation projects in the course of 2020 to assist Angola and Mozambique to further improve their safety oversight systems.
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