COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK

Addressing the impact of a withdrawal of the United Kingdom from the Union without an agreement: the Union’s coordinated approach

1.Introduction

On 29 March 2017, the United Kingdom notified its intention to withdraw from the Union. The Commission continues to consider that an orderly withdrawal of the United Kingdom from the Union on the basis of the Withdrawal Agreement, which has been agreed by the United Kingdom Government and which the European Council (Article 50) endorsed on 25 November 2018, is the best outcome. The Commission continues to focus its efforts on that goal. It is nevertheless the case, that two days before the deadline of 12 April 2019, as extended by the European Council , the likelihood of a disorderly withdrawal has significantly increased. The purpose of the present communication is to take stock of the intense preparations for that scenario which have been underway since 2017.

The Commission has repeatedly drawn the attention of all stakeholders, including in the three Brexit Preparedness Communications of 19 July 2018 , 13 November 2018 and 19 December 2018 , to the fact that a no-deal scenario would create significant disruptions. This assessment has not changed. In a no-deal scenario, it will not be possible to replicate the orderly transition foreseen in the Withdrawal Agreement.

Consequently, EU institutions, Member States administrations at all levels and all stakeholders have worked together to mitigate the impact of a no-deal scenario. Today, as a result of this collective effort, the EU is prepared for a disorderly withdrawal.

The contingency measures which have been adopted at European and national levels are based on the general principles set out in the Communication of 13 November 2018. Contingency measures do not replicate the benefits of membership of the Union, nor the terms of any transition period, as provided for in the Withdrawal Agreement. They are temporary in nature, and were adopted unilaterally by the European Union in pursuit of its interests. They fully respect the division of competences that the Treaties lay out, as well as the principle of subsidiarity.

In a no-deal scenario, these temporary contingency measures provide the United Kingdom the space in which to address the three main separation issues, which are a precondition for discussions on the way forward with the United Kingdom. As stated by President Juncker to the European Parliament on 3 April 2019, these issues are (i) that rights of EU27 and UK citizens who have exercised their right to free movement before withdrawal would still need to be upheld and protected, (ii) that the United Kingdom would still have to honour its financial commitments made as a Member State, and (iii) that a solution would still need to be found to preserve peace on the island of Ireland and the integrity of the internal market. The United Kingdom must fully respect the letter and spirit of the Good Friday Agreement.

2.The contingency preparations are finalised

Preparing for the withdrawal of the United Kingdom has been a joint effort of EU institutions and bodies, national, regional and local authorities, as well as of economic operators. All these actors have been called upon to take their responsibilities to prepare for the withdrawal without an agreement and to mitigate its worst impacts.

The EU institutions and bodies and the EU27 Member States have been preparing actively for a no-deal scenario since December 2017. Beyond the three Communications which have provided political guidance on the approach to be followed, the Commission has published 92 notices to help stakeholders and authorities to prepare. It has also made 19 legislative proposals, 18 of which have been adopted and will apply from the withdrawal date, and one, on the EU budget for 2019, which will apply retroactively from the withdrawal date, once finalised. The Commission has also adopted 45 non-legislative acts across a number of policy areas.

The Commission has held extensive technical discussions with the EU27 Member States both on general issues of preparedness and contingency work and on specific sectorial, legal and administrative issues. Commission representatives have visited the capitals of all EU27 Member States to provide clarity on the Commission’s preparedness and contingency actions and to discuss national preparation and contingency plans. The visits showed a high degree of preparation by the Member States for all scenarios.

Key areas in which contingency efforts have been necessary include citizens’ rights (social security, residence rights and travel), transport (basic connectivity and safety), police and judicial cooperation, the management of the new Union external borders with the United Kingdom, fisheries and the Union’s budget. The Union and the Member States have adopted measures in other selected areas as well.

For citizens, Member States are providing continued (temporary or permanent) residence rights for UK nationals that are resident in the EU at the time of the withdrawal, inspired by the generous approach recommended by the Commission .

Citizens’ social security entitlements in relation to the United Kingdom before the withdrawal are protected. The contingency Regulation will ensure for the persons covered, irrespective of their nationality, the principles of equality of treatment, assimilation and aggregation of facts or events that occurred, and of periods of residence, insurance or work that were completed prior to the withdrawal . Member States are also implementing measures at national level to secure the protection of social security entitlements for these citizens after the withdrawal.

The Union has also agreed that United Kingdom nationals will not need a visa when travelling to the EU for short stays of 90 days in any 180-day period, for business and tourism, as long as the United Kingdom provides the same treatment for all citizens of the EU27 .

Contingency Regulations are also in place to maintain essential transport connections for the key modes of transport: aviation , rail , and road both for passengers and for freight .

Following the withdrawal of the United Kingdom from the Union, police and justice cooperation will take place on the basis of multilateral international conventions, rather than on the basis of EU law. EU institutions and Member States have together identified the appropriate instruments that can be used in that context. Member States have invested significant efforts in ensuring that these instruments are operational by the withdrawal date.

Member States have worked closely with the EU institutions to ensure that the integrity of the internal market is preserved by putting in place appropriate infrastructure and resources to apply custom formalities and controls as well as sanitary and phytosanitary checks of goods at the border.