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Final call to all EU citizens and businesses to prepare for the UK’s withdrawal on 31/10

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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:

1. Transport

  • 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.

Ireland

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. 

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Croatia on the way to join the Schengen Area

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The Commission is today reporting on Croatia’s progress in meeting the necessary conditions to join the Schengen area. The European Commission considers that, based on the results of the Schengen evaluation process initiated in 2016, Croatia has taken the measures needed to ensure that the necessary conditions for the full application of the Schengen rules and standards are met. Croatia will need to continue working on the implementation of all ongoing actions, in particular its management of the external borders, to ensure that these conditions continue to be met. The Commission also today confirms that Croatia continues to fulfil the commitments, linked to the Schengen rules, that it undertook in the accession negotiations.

President Jean-Claude Juncker said: “I commend Croatia for its efforts and perseverance to meet all the necessary conditions to join Schengen. It is only through being united and standing together that we can ensure a stronger Schengen area. Sharing the achievement of Schengen must be our common objective. This is why I trust that Member States will take the right steps for Croatia to become a full Schengen member soon.”

Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos said: “Schengen is one of the greatest and most tangible achievements of European integration. But its strength very much depends on its inclusiveness – now that Croatia has taken the measures to ensure that the necessary conditions are met, we must recognise this. Once it becomes a full Schengen member, it will contribute to further strengthening the Schengen area and ensure that the EU’s external borders are better protected.”

In his 2017 State of the Union Address, President Juncker expressed his unequivocal support for Croatia becoming a full Schengen member once all the necessary conditions were met. Today, the Commission is reporting on the positive result of a long process of evaluation and cooperation, which has seen Croatia steadily improve to meet those conditions.

Assessment of all Schengen criteria

Today’s Communication takes stock of the evaluations conducted between June 2016 and May 2019, which examined the application of Schengen rules and standards by Croatia in a number of areas. Whilst the Commission had already successfully evaluated and confirmed the full implementation of the Schengen rules in the areas of data protection, police cooperation, common visa policy, return, the Schengen Information System (SIS), firearms and judicial cooperation in criminal matters, today’s communication also confirms that Croatia has taken the necessary measures to ensure that the conditions for the application of Schengen rules in the field of external border management are met. Croatia will need to continue working to ensure the consistent implementation of all ongoing actions in this field.

Finally, the Commission is also reporting on the fulfilment of commitments undertaken by Croatia in its accession negotiations that are relevant for the Schengen rules. The commitments in particular concern the area of the judiciary and respect of fundamental rights. The Commission today confirms that Croatia continues to fulfil all of them.

Next steps

The Commission invites the Council to discuss this communication with the aim of integrating Croatia into the Schengen area in line with the 2011 Act of Accession.

Background

The Schengen area is the largest free-travel area in the world, currently including 22 EU countries (Austria, Belgium, Denmark, France, Finland, Germany, Greece, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia) as well as 4 associated non-EU countries (Norway, Iceland, Switzerland and Liechtenstein). It allows citizens to move freely between those countries without having to go through border checks, making it easier to travel, work and live across borders.

Countries wishing to join the Schengen area must undergo a series of Schengen evaluations to confirm whether they fulfil the conditions necessary for the application of the Schengen rules. These evaluations assess whether a country is able to take responsibility for controlling the external borders on behalf of the other Schengen States, efficiently cooperate with other law enforcement agencies in other Schengen states in order to maintain a high level of security once border controls are abolished, apply the Schengen rules such as control of external land, sea and air borders (airports), issuing of Schengen visas, return procedures, police cooperation and protection of personal data, and finally the need to connect to and the use of the Schengen Information System.

Once it is considered that all the necessary conditions for the application of all the relevant parts of the Schengen rules are met, it is for the Council, following consultation of the European Parliament, to take a final decision by unanimity.

Croatia declared its readiness to start the Schengen evaluation process in all relevant policy areas in March 2015. Today’s report takes stock of the progress made during this evaluation process in all relevant areas and confirms the continued fulfilment of commitments undertaken by Croatia during its accession negotiations to the EU.

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Libya: €2 million in humanitarian assistance to cover basic needs

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As many continue to suffer from the ongoing conflict in Libya, the European Commission has announced today €2 million in additional humanitarian aid to help those most in need. The assistance will cover emergency health care services, food, livelihood support and protection services.

“The EU is committed to supporting the most vulnerable in Libya who have now suffered years of conflict. This additional funding will help our humanitarian partners to continue to deliver aid in hard-to-reach areas. It is crucial that parties to the conflict respect International Humanitarian Law, and allow humanitarian workers full access to help those in need and save lives,” said Commissioner for Humanitarian Aid and Crisis Management, Christos Stylianides.

EU humanitarian aid supports access to essential healthcare for victims of the conflict, including emergency war surgery, physical rehabilitation, provision of essential medicines as well as prosthesis and psychosocial support. This assistance helps to restore primary healthcare services in conflict-affected areas, as well as providing education for children.

The EU funding will be closely monitored and channelled through international non-governmental organizations and the International Committee of the Red Cross.

Background

Since 2014, the European Union has allocated more than €46 million in humanitarian aid to respond to the most pressing needs in Libya. EU humanitarian funding amounted to €9 million in 2018 and €8 million in 2019.  Humanitarian aid is part of the EU’s broader support for Libya to address the ongoing crisis in the country. The EU has also allocated around € 367.7 million under the North of Africa window of the EU Emergency Trust Fund for Africa and bilateral assistance for protection and assistance of migrants, refuges and internally displaced people.

Through its partners, the EU also provides protection services, emergency food and other supplies to support conflict affected populations. We also provide education in emergencies to crisis-affected children. The EU provides aid to all vulnerable people, including forcibly displaced and vulnerable host populations, migrants, refugees and asylum seekers, regardless of their status and solely based on needs. The EU is providing assistance across all geographic areas in Libya, including in the Southern and Eastern part of the country.

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OECD and European Commission join forces to further support structural reforms in European countries

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The OECD and the European Commission’s Structural Reform Support Service (SRSS) sealed a new agreement today in Paris that will see the OECD provide wide-ranging policy support to advance structural reforms in European countries.

OECD Chief of Staff, Gabriela Ramos, and Director General of the SRSS, Maarten Verwey, concluded an agreement on 34 reform projects, to be conducted over the next 12 to 18 months, in 18 EU countries under the umbrella of the Structural Reform Support Programme of the European Commission.

The OECD SRSS agreement comes at a time of a slowdown in global growth, rising inequalities and  higher environmental degradation, which threaten people’s well-being. The OECD, with its extensive knowledge base and expertise, is supporting governments to tackle these issues head on and considers the cooperation with the SRSS to be an excellent opportunity to further leverage its expertise to deliver better policies for better lives.    

The action will see the OECD working closely with the SRSS to provide policy advice and working directly with governments to advance structural reform in various policy areas, including education, labour markets, tax, governance, environment and transport infrastructure. These projects respond to the reform priorities identified by the respective EU Member States and will for example help governments develop sustainable development strategies, establish frameworks for circular economies, improve housing affordability in cities, or improve the provision of labour market services. The OECD will capitalize on the digital transformation and also deliver on skills strategies. In a nutshell, it will redouble efforts to support European countries, Members and Partners, in their goal to build strong, inclusive and sustainable economies.

The Structural Reform Support Service offers tailor-made support to all EU Member States for the preparation, design and implementation of growth-enhancing reforms. The support is provided on the request of EU Member States, requires no co-financing and mobilises experts from all over Europe and beyond, from both the public and the private sector.

The new OECD – SRSS agreement allows the SRSS to leverage OECD’s expertise on best policy practices and structural reforms in the EU Member States. Such co-operation will deliver value added impact, carried out with efficiency, for the benefit of all countries.

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