EU secret report; No deal Brexit be worse for EU than UK

No deal Brexit ‘would be worse for the EU than Britain because red tape would slow down efforts to respond quickly, Brussels believes’

  • EU’s top civil servant Martin Selmayr has been drawing up contingency plans
  • Decisions could be delayed as member states and EU will need to approve them 
  • And the EU Parliament breaks for elections soon after Brexit day next Maarch 
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A no-deal Brexit would be worse for the EU than for Britain, a secret report drawn up by the bloc reveals.

European Commission chiefs have been drawing up contingency plans as fears Britain will crash out of the bloc without a deal grow.

They are becoming increasingly worried red tape in Brussels will slow down the ability of EU countries to quickly respond to the challenges, The Times reports.  

The plans, drawn up by the EU’s top civil servant Martin Selmayr, would see the bloc step in to keep trade open and planes in the air.

But the bureaucracy-laden EU may not be able to get all the clearance needed to act swiftly, the report finds.

The plans, drawn up by the EU’s top civil servant Martin Selmayr (pictured right with Commission president Jean-Claude Juncker), would see the bloc step in to keep trade open and planes in the air

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Officials fear that decisions would need to be green the green light by member states and the EU Parliament – taking some time.

What is in Theresa May’s Brexit blueprint?

These are some of the key features of the Chequers plan being pushed by the UK government:

  • A new free trade area in goods, based on a ‘common rulebook’ of EU regulations necessary. This will require the UK to commit by treaty to match EU rules
  • ‘Mobility’ rules which will end automatic freedom of movement, but still allow UK and EU citizens to travel without visas for tourism and temporary work. It will also enable businesses to move staff between countries. 
  • Continued UK participation in and funding of European agencies covering areas like chemicals, aviation safety and medicines
  • A ‘facilitated customs arrangement’, removing the need for customs checks at UK-EU ports. It would allow differing UK and EU tariffs on goods from elsewhere in the world to be paid at the border, removing the need for rebates in the vast majority of cases. In theory this allows Britain to sign trade deals.
  • Keeping services – such as banking or legal support – outside of the common rule book, meaning the UK is completely free to set its own regulations. It accepts it will mean less trade in services between the UK and EU. 
  • Continued co-operation on energy and transport, a ‘common rulebook’ on state aid and commitments to maintain high standards of environmental and workplace protections. 
  • A security deal allowing continued UK participation in Europol and Eurojust, ‘co-ordination’ of UK and EU policies on foreign affairs, defence and development.
  • Continued use of the EHIC health insurance card. 

While the decisions could also be bogged down in legal challenges as many steps taken would have to be in line with EU treaties.

This means that they could be challenged in the European Court of Justice – further delaying the scramble to get the plans up and running.  

While the EU Parliament is due to break up just three weeks after Brexit, at the end of next March, for fresh elections to the bloc and will not meet again until July.

Officials are alarmed that this may leave a political vacuum in Brussels just as swift action will be needed to cope with a no deal. 

And they believe this could chip away at the unity of the bloc, and that member states with strong trade links with the UK will step in and call for a softer approach to Britain.

A senior EU source told the newspaper: ‘It will be very difficult to co-operate. In most areas where we will need to act there will be national vetoes in play. 

‘All countries will be able to block.’ 

Experts believe that as a single government the UK will be able to take respond more effectively because it  can take decisive action quickly.

If Britain does crash out of the Brussels bloc then the two sides will need to decided how to police the borders, and collect and pay customs tariffs   

Vicky Ford, a former chairwoman of the European parliament’s internal market committee, said: ‘In terms of getting decisions made quickly you need more notice than you do in the British parliament.’ 

And she said that EU elections next spring could see a more right-wing and populist parliament elected.

She said: ‘The fear is that the new parliament is going to be much more fragmented and difficult to manage.

‘Everyone I speak to in member states wants a deal before March and if that is not possible then an extension to Article 50 to give us time to reach a deal.’ 

Tory MP Bill Cash, a leading Brexiteer and chairman of the European scrutiny select committee, said the EU would face ‘very substantial legal problems’ in the event of there being no deal. 

Under the contingency plans drawn up by the bloc, the EU could agree to just estimate the amount of customs tariffs owed in order to keep the borders open.  

Theresa May (pictured last week at a WW1 memorial event in France) is leading the UK out of the EU next March. Fears that Britain will crash out without a deal are growing after her Chequers Brexit proposals bombed on the doorstep – sparking a Tory grassroots revolt and a wave of resignations from her Cabinet

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