Dave Reacts – The EU is ready for No Deal Brexit

Dave Reacts – The EU is ready for No Deal Brexit

First please visit the offical EU publications link I have provided so you can download the offical PDF to follow along with me as we discuss the ways the EU has already been preparings for a UK “No Deal” WTO deal come 29-03-2019.

source: https://ec.europa.eu/info/publications/communication-19-december-2018-preparing-withdrawal-united-kingdom-european-union-30-march-2019-implementing-commissions-contingency-action-plan_en

Source date: 19 December 2018

Ok now we both have the same information I will go through it to show that instead of the project fear those who wish to do everything they can to remain in the EU have spread, that in reality, the EU and UK have been working behind the scenes for the situation of a no deal, which is really leaving on WTO terms.

Citizens & social security


1.What will be the legal situation of UK nationals resident in the EU in case of
no deal? Can they continue to work in their Member State of residence and
travel freely across the whole EU? Will they need specific documents and can
they apply already for those?
In today’s Communication, the Commission has called upon Member States to
act along the following lines regarding the rights of UK nationals to stay and
work in EU27 Member States in case of no deal:
* Take measures so that all UK nationals legally residing in a Member
State on 29 March 2019 will continue to be considered as legal
residents of that Member State without interruption;
* Stand ready to issue residence permits to the UK nationals concerned
as evidence of their legal stay and right to work;
Take all necessary legislative and administrative measures to be able to
issue temporary residence documents by the withdrawal date, and to
process applications for definitive residence permits under the uniform
format by the end of 2019.

Reaction: So no mass deportations for UK nationals living in the EU today and a rapid route to gaining officail documentation by the end of 2019.

4. What happens, in case of no deal to the old-age pension of an EU27 citizen
who is currently retired in the UK and receives an old-age pension from one
or more EU27 Member States?
The Commission has called upon Member States to continue paying old-age
pensions to EU27 citizens who are already residing in the UK on 29 March
2019 and remain there after that date. Nothing in EU law prevents Member
States from paying pensions to beneficiaries residing in a third country.

Reaction: Pensions payable are to continue to be paid

Aviation – market access


8. Will there still be plane connections between the UK and the EU in case of no
deal? What exactly is the EU proposing to ensure this? What will happen if the
UK does not reciprocate the measures taken by the EU?
In case of no deal, the Commission is proposing that “point-to-point” flight
connections, i.e. connections from the territory of the United Kingdom to the
territory of the EU27, are temporarily allowed on the basis of a unilateral
measure. This measure will enter into force in case of no deal, if the United
Kingdom reciprocates, and last until 30 March 2020. This is to avoid a full
interruption of traffic between the EU and the United Kingdom.

Reaction: Flights between the UK and EU/EU and UK will see no change

Road – haulage

15.Will trucks be able to continue carrying goods between the UK and the EU if the
UK leaves in case of no deal? Is there a restriction in numbers?
The Commission is proposing that operators from the United Kingdom are
temporarily allowed to carry goods into the Union, provided the United
Kingdom confers equivalent rights to Union road haulage operators and
subject to conditions ensuring fair competition. This measure shall enter into
force in case of no deal, and cease to have effect on 31 December 2019.

Reation: No change for goods to be transported by lorries to and from the EU, trade will flow as it does today.

17.Will passenger cars be able to drive between the EU and the UK if the UK
leaves without a deal? Is there a restriction in numbers?
Passenger cars registered in the United Kingdom will be allowed to drive to the
European Union and vice-versa. There is no restriction in numbers. The only
condition is that the vehicles (and drivers) comply with the relevant rules of
the 1968 Vienna Convention on Road Traffic (or the 1949 Geneva Convention
on Road Traffic for vehicles and drivers from Ireland, Cyprus, Malta and
Spain). For more details you should consult the Commission preparedness
notice on travelling of 13 November 2018.
6

Reaction: We can still pop in our cars and nip over to Calais for cheap booze. Yes siplistive responce but means no change

Road – Bus services


18.Will the EU take any contingency measures in this area? Would Member States
be allowed to make bilateral agreements with the United Kingdom, to ensure
the continuation of cross-border services?
The EU does not intend to take any contingency measures in this area. The UK
has signalled that, following its withdrawal from the European Union, it intends
to become a Contracting Party to the Interbus Agreement of 2002 in its own
right, which is in principle possible. This would allow transport by bus or coach
as occasional services to be performed. The Interbus Agreement only covers
occasional services, but a Protocol extending its scope to regular and special
regular services has recently been agreed and is being ratified, hence bilateral
agreements between individual Member States and the United Kingdom will
not be needed.

Reaction: No change to bus and coach services to and from the EU

19.Are UK driving licences going to be recognised in the EU in a no deal scenario?
In a no-deal scenario, UK driving licences will be recognised in the European
Union (and vice-versa) on the basis of the 1968 Vienna Convention on Road
Traffic (and the 1949 Geneva Convention on Road Traffic in the case of
Ireland, Cyprus, Malta and Spain).
For more details you should consult the Commission preparedness notice on
travelling of 13 November 2018.

Reaction: You do not need a new driving licence to travel to the EU.

Rail transport


20.Will train services continue between the United Kingdom and the European
Union in a no-deal scenario?
To continue operating in the EU, train operators need an EU operating licence
and an EU safety certificate, as well as train drivers licensed in an EU Member
State. Currently its operating licence and safety certificate, as well as licences
held by some of their drivers, are issued by the UK authorities and will cease
to be valid in the EU27 as of the withdrawal date in a no-deal scenario.
The Commission’s services have been in contact with operators on the need to
fulfil the abovementioned requirements and to speed up the process in order
to ensure the continuity of the service between the United Kingdom and the
European Union in a no-deal scenario. This work will need to be completed
rapidly to ensure the service continues running without significant interruption.
For more details, stakeholders should consult the Commission preparedness
notices on rail transport.

Reaction: New operation licences will be needed and the EU has already advised operators about this.

Financial Services


21.What exactly is the Commission proposing in the area of financial services?
After examining the risks linked to a no deal scenario in the financial sector,
and taking into account the views of the European Central Bank and the
European Supervisory Authorities, the Commission has concluded that only a
limited number of contingency measures is necessary to safeguard financial
stability in the EU27. These measures mitigate financial stability risks only in
those areas where preparedness actions from market operators alone are
clearly insufficient to address these risks by the withdrawal date. This is why
the Commission has adopted today two temporary and conditional
equivalence decisions prolonging the access of EU firms to UK central clearing
counterparties (CCPs)
9 and UK central security depositories (CSDs) 10, for 12
and 24 months respectively.
In addition, the Commission is amending two Delegated Regulations in order
to preserve the regulatory treatment of derivative contracts currently
exempted from the clearing obligation and the bilateral margin requirements
that EU law imposes, when such contracts are transferred from the UK to the
EU27. Such flexibility would be granted for a period of 12 months following
the withdrawal date

Reaction: Access to both markets left open to safegaurd stability in the markets.

Sanitary and Phyto-sanitary (SPS) rules


26.What is the exact scope of the contingency measures on veterinary legislation
and when will they be in place?
In case of no-deal, EU rules in public/animal health areas will no longer apply
to the UK. Therefore, the entry of animals and their products from the UK into
the EU will only be allowed if the UK is listed as an authorised third country in
the relevant sectors of EU legislation.
The contingency measures announced in the Commission Communication of
13 November 2018 foresee that the UK will be added to the lists for live animals and animal products, subject to providing guarantees that all
applicable conditions under the veterinary or sanitary legislation will be
fulfilled. In a no deal scenario, the listing of the United Kingdom should enter
into force on 30 March 2019.


Reaction: No change in the transport of pets and or livestock between the EU and UK

Taxation

35.What rules will apply to EU-UK trade in terms of VAT in case of no deal?
In case of no deal, existing EU legislation with regard to VAT will continue to
apply within the European Union. As of withdrawal date, the rules of the EU
VAT Directives relating to third countries will apply in the relations with the UK.
This means that, in case of no deal, VAT will be due at the importation in the
EU. Goods will be exempt from VAT if they are dispatched or transported to a
destination outside the European Union, including, therefore, the UK.

Reations: If you are already importing from the EU (No VAT) then this will not change.

Dave’s Summary

So it looks like that all the “project fear” runs to nothing.

I apprciate that there is still alot of areas to tackles but as you can see from this offical EU memo plans are alreay afoot to limit any changes there could be and to create a smooth no deal transition, well as smooth as realistically possible.

There will be a small amount of extra paperwork initailly but nothing like the scare stories spread on moth Main and Social media.

A WTO Brexit (no deal) is now looking as the right way to go and I for one look forward to its implementation.

 

 

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