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Nervous Europe ramps up Brexit preparations
BRUSSELS, Jan 18, 2019 (BSS/AFP) – Europe is ramping up preparations for
the economic blow of a possible “no deal” Brexit, fearing the political
crisis in London has killed off hopes of an orderly divorce.
Contingency planning has been under way for months, but Prime Minister
Theresa May’s apparent inability to sell any withdrawal deal to parliament
has focused minds.
EU leaders insist the British economy will be worst hit by a disorderly
breakdown in trading ties, but Britain’s neighbours are also braced for
disruption.
Renewed border controls and regulatory barriers could slow trade and choke
ports, and uncertainty hangs over the rights of British citizens living in EU
states.
A solution may be found, but in the meantime here are some of the key
early decisions made in Brussels and key British trading partners.
European Commission
While EU negotiator Michel Barnier has handled talks with London on the
divorce deal, planning for a “no deal” scenario has fallen to the bloc’s
powerful secretary general, Martin Selmayr.
Brussels has taken a coordinating role for member states and published 88
advisory notes, sector by sector, focused on threats to financial markets,
air traffic, customs and emissions trading.
After Tuesday’s failed vote in London, the Commission announced plans to
send teams to all 27 other EU capitals to coordinate a continent-wide plan.
Ireland
Ireland, the only EU member with a land border with Britain, has the next
most to lose in a chaotic Brexit.
Politically, concerns have focused on how renewed border controls could
stir potential unrest in Northern Ireland, but the economy is also at risk.
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Ireland is hiring 1,000 staff to implement agricultural and customs
checks, although the government has faced criticism for failing to disclose
how many hires have been completed.
In its 2019 budget, unveiled in October, the Republic put aside a 1.5
billion euro ($1.7 billion) “rainy day fund” and a “no deal Brexit” omnibus
bill will go to parliament in March.
At the port of Dublin work is under way on 33 inspection bays, 270 truck
parking spaces, a dedicated border control post for live animals and office
accommodation for an additional 144 staff.
The Netherlands
The Netherlands would be heavily exposed because of trading links via
Rotterdam, Europe’s largest port. It has set aside 100 million euros for
preparations, including the appointment of 900 new customs officers.
The government also announced unilaterally last week that the
approximately 45,000 British citizens and their families currently living in
the Netherlands will get a 15-month “grace period” to apply for a full
residency permit.
France
France activated its plan for handling the effects of a no-deal Brexit on
Thursday.
It provides for 50 million euros ($56 million) of investment in ports and
airports, infrastructure for carrying out border checks and extra car parks
to help cope with tailbacks.
France plans to recruit 580 additional customs staff and veterinary
inspectors.
Belgium
Belgium’s government is going through its own crisis as Britain wrangles
with Brexit, with Prime Minister Charles Michel having lost his majority in a
row over immigration.
But legislation has been prepared to recruit 115 new public servants to
reinforce customs and animal and farm product health controls.
The estimated 25,000 British citizens in Belgium have been promised they
will be allowed to stay on reciprocal terms to the Belgians living in the UK.
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