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 Preparing for the withdrawal of the United Kingdom from the European Union on 30 March 2019: Implementing the Commission’s Contingency Action Plan
Date: 2018-12-19
Institutions: European Commission, Secretariat-General
Subjects: EU visa policy, European Union membership, United Kingdom, action programme, climate change policy, negotiation of an agreement (EU), social policy, transitional period (EU), transport policy, withdrawal from the EU

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 19.12.2018  COM(2018) 890 final  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  Preparing for the withdrawal of the United Kingdom from the European Union on 30 March 2019: Implementing the Commission’s Contingency Action Plan  
 
The European Council calls for work on preparedness at all levels for the consequences of the 
United Kingdom’s withdrawal to be intensified, taking into account all possible outcomes 
European Council (Article 50), 13 December 20181 

1.  Introduction 

The  United  Kingdom  has  decided  to  leave  the  European  Union,  invoking  the  procedure  in 
Article 50 of the Treaty on European Union. Unless the decision is withdrawn2 or the period is 
unanimously  extended,  this  will  become  effective  in  just  over  100  days.  The  Commission 
regrets  this  decision,  but  respects  it.  As  emphasised  in  the  Commission’s  first  Brexit 
preparedness  Communication  of  19  July  20183,  irrespective  of  the  scenario  envisaged,  the 
United  Kingdom's  choice  will  cause  significant  disruption.  The  Commission  has  therefore 
consistently  called  on  European  citizens,  businesses  and  Member  States  to  prepare  for  all 
possible scenarios, assess relevant risks and plan their response to mitigate them.  

On  13  November  2018,  the  Commission  launched  a  Contingency  Action  Plan  in  its  second 
Brexit  preparedness  Communication4.  The  contingency  measures  announced  in  the  Action 
Plan  are  unilateral  measures  for  damage  limitation  and  can  only  mitigate  the  most  severe 
consequences of a withdrawal without an agreement. On 14 November 2018, the Negotiators 
of  the  Commission  and  the  United  Kingdom  agreed  on  the  terms  of  the  Withdrawal 
Agreement5.  On  22  November  2018,  the  Commission  approved  the  completed  Withdrawal 
Agreement6.  On  25  November  2018,  the  European  Council  (Article  50)  endorsed  the 
Withdrawal  Agreement  and  invited  the  Commission,  the  European  Parliament  and  the 
Council  to  take  the  necessary  steps  to  ensure  that  the  agreement  can  enter  into  force  on  30 
March 2019 to provide for an orderly withdrawal7. 

On  5  December  2018,  the  Commission  adopted  two  proposals  for  Council  decisions  on  the 
signature  and  conclusion  of  the  Withdrawal  Agreement,  to  allow  for  the  conclusion  and 
ratification  on  the  EU  side  in  the  coming  weeks.  The  European  Council  (Article  50)  of  13 
December 2018 confirmed its endorsement of the Withdrawal Agreement and its intention to 
proceed with its ratification. The Withdrawal Agreement will have to be ratified by the United 
Kingdom,  in  accordance  with  its  own  constitutional  requirements.  The  ratification  of  the 
Withdrawal  Agreement  by  both  parties  continues  to  be  the  objective  and  priority  of  the 
Commission.  

The  European  Council  (Article  50)  of  13  December  2018  also  called  for  work  on 
preparedness for the consequences of the United Kingdom’s withdrawal to be intensified at all 

1 
2  

3  

4  

5  

6  
7  

https://www.consilium.europa.eu/media/37508/13-euco-art-50-conclusions-en.pdf  
The  United  Kingdom  may  revoke  unilaterally,  in  an  unequivocal  and  unconditional  manner,  the 
notification of its intention to withdraw from the EU, Case C-621/18 Wightman and Others v Secretary 
of State for Exiting the European Union. 
https://ec.europa.eu/info/publications/preparing-withdrawal-united-kingdom-european-union-30-march-
2019_en 
https://ec.europa.eu/info/publications/communication-preparing-withdrawal-united-kingdom-european-
union-30-march-2019-contingency-action-plan-13-11-2018_en  
https://ec.europa.eu/commission/sites/beta-political/files/joint_report_0.pdf; 
https://ec.europa.eu/commission/sites/beta-political/files/draft_withdrawal_agreement_0.pdf  
Communication to the Commission, endorsed on 22 November 2018, C(2018)9001. 
https://www.consilium.europa.eu/media/37103/25-special-euco-final-conclusions-en.pdf  

1 

 
 
 
                                                           
levels  and  for  all  possible  outcomes.  This  Communication  explains  the  measures  that  the 
Commission adopted today, 19 December 2018, in response to that call, together with other 
crucial steps in the implementation of its Contingency Action Plan. 

2.  The Commission’s Contingency Action Plan 

Given the continued uncertainty surrounding the ratification process on the side of the United 
Kingdom,  and  in  line  with  the  Conclusions  of  the  European  Council  (Article  50)  on  13 
December,  the  Commission  is  proceeding  urgently  with  the  implementation  of  its 
Contingency Action Plan. The Commission has adopted today all the legislative proposals and 
delegated  acts  which  it  announced  in  that  Action  Plan8.  The  remaining  draft  implementing 
acts which it announced will be ready by 15 February 2019 at the latest, to allow for a vote in 
the competent committees in good time. 

In  parallel,  the  Commission  has  also  continued  to  work  closely  with  Member  States  to 
coordinate  planning  at  EU  and  at  national  level.  The  package  of  measures  adopted  by  the 
Commission  and  described  in  this  Communication  takes  into  account  discussions  with 
Member States9. This action comes in addition to the preparedness measures that have already 
been taken, as set out in the second preparedness Communication. 

The Commission calls on the European Parliament and on the Council to adopt the proposals 
as  a  matter  of  urgency.  Member  States  should  accelerate  their  work  to  prepare  for  all 
scenarios for the United Kingdom’s departure.  

The  Commission  also  calls  on  Member  States  to  refrain  from  entering  into  bilateral 
agreements, arrangements and discussions with the United Kingdom. These would undermine 
the  ratification  process,  in  most  cases  would  not  be  compatible  with  Union  law,  and  would 
risk  creating  an  uneven  level  playing  field  among  Member  States.  They  would  also 
complicate  the  Union’s  future  negotiations  on  a  new  partnership  with  the  United  Kingdom. 
As  was  the  case  for  the  Withdrawal  Agreement,  it  is  essential  to  continue  with  a  united 
approach to preparedness and contingency work.  

3.  Taking action 

As set out in the second Brexit preparedness Communication, contingency measures10 adopted 
at all levels should comply with the following principles: 

  Contingency measures should not replicate the benefits of membership of the Union, 
nor  the  terms  of  any  transition  period,  as  provided  for  in  the  draft  Withdrawal 
Agreement; 

  They should be temporary in nature. For the measures adopted today, the Commission 
has,  where  relevant,  proposed  time  limitations  which  are  a  function  of  the  specific 
situation in the sector concerned; 

8  
9  

10  

See Annexes I and II of the second Brexit preparedness Communication. 
A  number of sectorial preparedness seminars  were held  with Member States  (EU27)  and are listed in 
Annex 6 of the second Brexit preparedness Communication. 
The list of actions is without prejudice to additional action that could appear to be necessary at a later 
stage. 

2 

 
 
 
 
                                                           
  They should be adopted unilaterally by the European Union in pursuit of its interests 

and should be revocable at any time;  

  They should respect the division of competences provided for by the Treaties; 
  National contingency measures should be compatible with EU law; 
  They  should  not  remedy  delays  that  could  have  been  avoided  by  preparedness 

measures and timely action by the relevant stakeholders. 

By virtue of Article 355(3) TFEU and to the extent provided for in the 1972 Act of Accession 
of  the  United  Kingdom  to  the  European  Communities,  Union  law  applies  to  Gibraltar  as  a 
European territory for whose external relations a Member State is responsible. Article 355(3) 
TFEU  will  no  longer  apply  to  Gibraltar  when  the  United  Kingdom  is  no  longer  a  Member 
State. As a consequence, contingency measures will not apply to Gibraltar.  

4.  Citizens 

If  the  Withdrawal  Agreement  is  not  ratified,  EU  citizens  residing  in  the  United  Kingdom 
would  no  longer  be  protected  by  the  EU  rules  on  free  movement.  UK  nationals  in  the 
European Union would be subject, as of the withdrawal date, to the general rules that apply to 
third country nationals in the EU. This would have an impact on their right to stay and work 
where they currently live as well as on the social security protection they benefit from. 

The  Commission  has  consistently  made  clear  that  protecting  EU  citizens  in  the  United 
Kingdom, as well as UK citizens in the European Union is a priority.  It calls upon Member 
States  to  take  a  generous  approach  to  UK  nationals  who  are  already  resident  in  their 
territory11.  The  Commission  welcomed  in  its  Communication  of  13  November  the 
reassurances by Prime Minister May12 that even in a no deal scenario, the rights of EU citizens 
in  the  United  Kingdom  will  be  protected  in  a  similar  way.  The  Commission  expects  this 
assurance to be formalised soon so that it can be relied upon by citizens. 

Right to stay 

For UK nationals residing in the European Union, EU rules as well as national rules regarding 
third-country nationals will apply to them as concerns their right to enter, reside and work in 
the EU Member States. For short stays (up to 90 days in a 180 day-period) the Commission 
has  adopted  a  proposal  for  a  Regulation13  which  exempts  UK  nationals  from  visa 
requirements,  provided  that  all  Union  citizens  are  equally  exempted  from  UK  visa 
requirements.  Third-country  nationals  who  want  to  reside  in  an  EU  Member  State  for  more 
than 90 days for any purpose need to  obtain a residence permit or a long-stay visa from the 
national migration authorities. Third country nationals who have been legal residents  in one 
Member State for a period of five years must be granted, subject to certain conditions, long-
term  resident status in  that  Member State  in  accordance with  Union rules. The Commission 
clarified  in  its  second  Brexit  preparedness  Communication  that  it  considers  that  periods  of 
legal residence of UK nationals in a Member State before the withdrawal should be taken into 
account for these purposes.  

11  

12  
13  

The term ‘UK nationals’ used in this Communication should be understood as covering also their third 
country family members already resident in the respective host State at the time of withdrawal. 
https://www.gov.uk/government/news/pm-brexit-negotiations-statement-21-september-2018. 
COM(2018) 745 final. 

3 

 
 
                                                           
Against this background, the Commission calls upon Member States to:  

  take measures, in compliance with Union law, 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.  Member  States,  in  particular  those  hosting  the 
largest numbers, are invited to take a pragmatic approach, in compliance with Union 
law, to issue temporary residence documents, until definitive residence permits can be 
issued14.  Several  technical  options,  such  as  national  legislative  measures,  issuing 
temporary documents or recognising pre-existing documents, can be used to take into 
account the specific situations of each Member State; and 

  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 format15 by the end of 2019. 

The  Commission  will  discuss  further  practicalities  with  Member  States  (EU27)  on  20 
December 2018 with a view to ensuring a coherent approach. 

For EU citizens residing in the United Kingdom, in addition to the efforts of Member State 
diplomatic representations in the United Kingdom, the Commission Representation Offices in 
the  United  Kingdom  will  continue  to  monitor  closely  the  United  Kingdom’s  position  with 
respect  to  the continued  residence of Union citizens in  the United Kingdom.  It  will  provide 
information and expertise to interested citizens in that regard.  

Social security coordination 

Union  law  provides  common  rules  on  social  security  coordination  to  protect  the  social 
security  rights  of  EU  citizens  who  exercised  their  fundamental  right  to  move  to  another 
Member State. Union rules on social security coordination cover rights derived from national 
law  linked  to  sickness,  maternity  and  paternity,  pensions,  invalidity,  unemployment,  family 
benefits, accidents at work and occupational diseases16. The principles underpinning the rules 
on social security coordination ensure that citizens are only covered by the legislation of one 
Member State (unicity), and that they have the same rights and obligations as the nationals of 
the Member State  where they  are covered  (equal treatment). The principles also  ensure  that 
previous  periods  of  insurance,  work  or  residence  in  other  Member  States  are  taken  into 
account when authorities determine a person’s eligibility for a benefit (aggregation), and that 
citizens may, as a rule, receive cash benefits to which they are entitled even if they live in a 
different Member State (exportability). 

14  

15  

16  

In order to continue residing and work in an EU Member State,  UK nationals residing in the Member 
State at the moment of the withdrawal will need to hold a residence permit appropriate to third country 
nationals, issued by the national migration authorities. 
As foreseen in Council Regulation (EC) 1030/2002 of 13 June 2002 laying down a uniform format for 
residence permits for third-country nationals (OJ L 157, 15.6.2002, p.1). 
Regulation  (EC)  883/2004  of  the  European  Parliament  and  of  the  Council  of  29  April  2004  on  the 
coordination of social security systems (OJ L 166, 30.4.2004, p.1) and Regulation (EC) 987/2009 of the 
European  Parliament  and  of  the  Council  of  16  September  2009  laying  down  the  procedure  for 
implementing Regulation (EC) No 883/2004 on the coordination of social security systems (OJ L 284, 
30.10.2009, p. 1). 

4 

 
 
                                                           
If the Withdrawal Agreement is not ratified, Union rules on social security coordination will 
no longer apply to the United Kingdom. This raises concerns for EU citizens who currently 
work or reside in the United Kingdom, or have done so previously, about their social security 
entitlements.  The  same  applies  to  UK  nationals  currently  working/residing  in  a  different 
Member State.  

The  Commission  calls  upon  Member  States  to  take  all  possible  steps  to  respond  to  these 
concerns  and  to  ensure  legal  certainty  and  protection  of  the  social  security  entitlements 
acquired by citizens who exercised their right to free movement prior to 30 March 2019.  

In particular, the Commission calls upon Member States to: 

  take into account, for EU27 citizens and UK nationals, periods of work/insurance that 

occurred in the United Kingdom before the withdrawal; 

  inform  citizens  that  they  should  keep  the  appropriate  documentation  that  provides 

evidence for these periods; 

  ensure  that  ‘aggregation’  of  periods  completed  until  withdrawal  also  benefits  those 

who continue to live in the United Kingdom;  

  export old-age pensions to the United Kingdom, despite the fact that it will be a third 
country.  This  would  apply  to  those  citizens  who  continue  to  reside  in  the  United 
Kingdom after the withdrawal date, but also to the UK nationals who acquired old-age 
pension entitlements within the EU27 prior to the withdrawal date.  

The Commission will provide concrete and detailed advice to Member States (EU27) on 20 
December 2018 on how to achieve a coherent contingency approach regarding social security 
coordination, which the Member States should apply as of the withdrawal date.  

The  Commission  recalls  that  the  Union  has  exclusive  competence  on  social  security 
coordination  for  the  periods  completed  and  for  facts  and  events  that  occurred  before  the 
withdrawal date.  

5.  Sector-specific regulation 

Financial services 

If  the  Withdrawal  Agreement  is  not  ratified,  financial  operators  established  in  the  United 
Kingdom will lose, as of the withdrawal date, the right to provide their services in the EU27 
Member States under the EU financial services passports. UK operators and their counterparts 
in the EU27 must therefore take action to comply with Union law in all scenarios and in time 
for  the  United  Kingdom’s  withdrawal,  as  the  Commission  has  indicated  in  the  stakeholder 
notices which it published in this area17. 

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 

17  

https://ec.europa.eu/info/brexit/brexit-preparedness/preparedness-notices_en#fisma  

5 

 
 
                                                           
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.  The  Commission  has 
therefore  today  adopted  the  following  acts  that  will  apply  from  the  withdrawal  date  if  the 
Withdrawal Agreement is not ratified: 

  A temporary and conditional equivalence decisioni for 12 months to ensure that there 
will be no disruption in central clearing of derivatives. This will allow the European 
temporarily  central 
Securities  and  Markets  Authority  (ESMA) 
counterparties  currently  established 
them 
temporarily  to  continue  providing  services  in  the  Union.  The  Commission  has 
concluded  that  EU27  companies  need  this  time  to  have  in  place  fully  viable 
alternatives to UK operators. 

the  United  Kingdom,  allowing 

to  recognise 

in 

  A temporary and conditional equivalence decisionii for 24 months to ensure that there 
will  be  no  disruption  in services  provided  by  UK  central  securities  depositories.  It 
will  temporarily  allow  them  to  continue  providing  notary  and  central  maintenance 
services to operators in the Union. This will allow EU27 operators that currently have 
no immediately available alternative in the EU27 to fulfil their obligations under EU 
law. 

  Two  Delegated  Regulationsiii,iv  facilitating  novation,  for  a  fixed  period,  of  certain 
over-the-counter  derivatives  contracts  with  a  counterparty  established  in  the 
United  Kingdom  to  replace  that  counterparty  with  a  counterparty  established  in  the 
Union.  This  allows  such  contracts  to  be  transferred  to  an  EU27  counterparty  while 
maintaining  their  exempted  status  and  thus  not  becoming  subject  to  clearing  and 
margining  obligations  under  the  European  Market  Infrastructures  Regulation.  Such 
contracts,  pre-dating  EMIR,  are  exempted  from  EMIR  requirements.  This  act  will 
ensure that a change of counterparty will not change that exempted status. 

In  all  sectors  of  financial  services,  firms  should  continue  to  take  all  the  necessary  steps  to 
mitigate  risks  and  ensure  that  clients  continue  to  be  served.  Firms  should  actively  inform 
clients about the steps they have taken and how they are implementing them. For their part, 
clients  in  the  European  Union  of  UK  firms  need  to  prepare  for  a  scenario  in  which  their 
provider is no longer subject to EU law.  

Air transport 

If  the  Withdrawal  Agreement  is  not  ratified,  air  traffic  between  the  EU  and  the  United 
Kingdom  will  be interrupted as  of the withdrawal  date. The Commission has today adopted 
two  temporary  measures  to  avoid  full  interruption  of  air  traffic  between  the  Union  and  the 
United Kingdom and to ensure basic connectivity: 

  A proposal  for a  Regulationv to  ensure  temporarily,  for 12 months, the  provision of 
certain air services between the United Kingdom and the  EU27 Member States, 
allowing air carriers from the United Kingdom to fly across the territory of the Union 
without landing, make stops in the territory of the Union for non-traffic purposes, and 
perform scheduled and non-scheduled international passenger and cargo air transport 
services.  This  is  subject  to  the  United  Kingdom  conferring  equivalent  rights  to  air 

6 

 
 
carriers from the Union, as well as to the United Kingdom ensuring conditions of fair 
competition.  

  A  proposal  for  a  Regulationvi  regarding  aviation  safety  to  extend  temporarily,  for  9 
months, the validity of certain existing licences, to address the specific situation in the 
aviation safety sector where the European Union Aviation Safety Agency (EASA) can 
only issue certain certificates on the basis of a licence issued in a third country, while 
the United Kingdom can only issue licences as of the withdrawal date, when it has re-
gained the status of "State of design". 

Only  EU  level  contingency  action  is  necessary  and  possible  to  ensure  the  required  legal 
framework  to  avoid  the  abrupt  interruption  of  activities  in  the  area  of  air  transport18. 
Additional national measures are not necessary. 

Road haulage 

If  the  Withdrawal  Agreement  is  not  ratified,  road  haulage  between  the  EU  and  the  United 
Kingdom will be severely restricted and limited to an international system of limited quotas. 
The Commission has today adopted  a measure to ensure basic connectivity. This will allow 
operators from the United Kingdom temporarily 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:  

  A  proposal  for  a  Regulationvii  to  allow  temporarily,  for  9  months,  access  for  road 
haulage  operators  licenced  in  the  United  Kingdom  to  the  carriage  of  goods  by  road 
between the territory of the latter and the EU27 Member States.  

EU level contingency action is necessary to ensure an appropriate legal framework in the area 
of road haulage. EU law has superseded old bilateral agreements on road haulage rights and 
they  cannot  be  resurrected.  Any  new  bilateral  agreement  would  raise  issues  of  competence, 
and  would  not  allow  for  road  haulage  to  the  United  Kingdom  by  an  operator  of  another 
Member State (cross-trade). They are therefore not a practical solution.  

Customs and the exports of goods 

If the Withdrawal Agreement is not ratified, all relevant EU legislation on imported goods and 
exported goods will apply as of the withdrawal date. This includes the levying of duties and 
taxes and the respect of the formalities and controls required by the current legal framework, 
in order to ensure a level playing field.   

Member State action continues to be essential. Member States must take all necessary steps to 
be in a position, as from the withdrawal date in case the withdrawal agreement is not ratified, 
to  apply  the  Union  Customs  Code  and  the  relevant  rules  on  indirect  taxation  to  all  imports 
from and exports to the United Kingdom. They should use the existing possibilities to issue 
authorisations for facilitation measures provided for in the Union Customs Code. In meetings 

18  

As regards stakeholders, the Commission  has emphasised the need for air carriers, manufacturing and 
maintenance organisations as well as licensed personnel, to seek the necessary licences, certificates and 
approvals as early as possible. The Commission also reiterates the need for companies that wish to be 
recognised  as  EU  air  carriers  to  take  all  the  necessary  measures  to  ensure  that  they  meet  this 
requirement on 30 March 2019. 

7 

 
 
                                                           
with  the  Member  States,  the  Commission  has  provided  detailed  information  on  the  options 
available under the Union Customs Code. 

The Commission has also adopted, today, the following technical measure:  

  A Delegated Regulationviii to include the seas surrounding the United Kingdom in the 
provisions on time-limits within which entry summary declarations and pre-departure 
declarations  have  to  be  lodged  prior  to  entering  or  leaving  the  Union’s  customs 
territory. 

If the Withdrawal Agreement is not ratified, the export of dual-use items from the EU to the 
United Kingdom, as of the withdrawal date, will require individual licenses. Dual-use items 
are  goods,  software  and  technology  that  can  be  used  for  both  civilian  and  military 
applications. The Union controls the export, transit and brokering of dual-use items so it can 
contribute  to  international  peace  and  security  and  prevent  the  proliferation  of  Weapons  of 
Mass Destruction (WMD). Union General Export Authorisations (EUGEAs) allow exports of 
dual-use items to certain destinations under certain conditions19. To facilitate controls on the 
export to the United Kingdom of dual use items as of the withdrawal date if the Withdrawal 
Agreement  is  not  ratified,  and  to  ensure  the  good  functioning  of  the  export  authorisation 
regime for all EU27 Member States, the Commission has adopted the following act: 

  A proposal  for a Regulationix to  add the United Kingdom  to  the list  of  countries for 
which a general authorisation to export dual-use items is valid throughout the EU. 

European Union climate policy 

European  Union  climate  policy  consists  of  various  instruments,  in  particular  the  Emissions 
Trading System, and a quota system for the placing on the market of hydrofluorocarbons. The 
Emissions  Trading  System  works  on  the  basis  of  market  mechanisms  for  the  supply  of 
emission allowances.  If the Withdrawal  Agreement  is not  ratified, the United Kingdom  will 
no longer participate in the system and allowances which it has emitted may create a situation 
of  oversupply.  To  prevent  the  distortion  of  the  market  that  would  result,  and  to  ensure  the 
smooth  functioning  and  the  environmental  integrity  of  the  Emissions  Trading  System,  the 
Commission has adopted the following act: 

  A  Commission  Decisionx  to  suspend  temporarily  for  the  United  Kingdom  the  free 
allocation  of  emissions  allowances,  auctioning,  and  the  exchange  of  international 
credits with effect from 1 January 2019. 

In addition, if the Withdrawal Agreement is not ratified, the United Kingdom will no longer 
take  part  in  the  quota  system  for  placing  hydrofluorocarbons  on  the  market.  The 
Commission has therefore adopted the following measures:  

  An  Implementing  Decisionxi  to  allow  an  appropriate  annual  quota  allocation  to  UK 

companies for accessing the EU27 market. 

19  

Exports to Australia, Canada, Japan, New Zealand, Norway, Switzerland, Liechtenstein, and the United 
States of America benefit from a Union General Export Authorisation. 

8 

 
 
                                                           
  An Implementing Regulationxii to ensure that the reporting by companies differentiates 
between the EU market and the UK market to allow a correct allocation of quotas in 
the future.  

Other sectors 

The  Commission  reiterates  its  commitment  to  ensuring  that  the  current  programmes 
between the border counties of Ireland and Northern Ireland continue in all scenarios, in 
view  of  the  particular  importance  of  regional  cooperation  in  the  area.  To  that  end,  the 
Commission has today adopted the following act: 

  A proposal for a Regulationxiii to ensure the continuation of the PEACE  IV (Ireland-
United  Kingdom)  and  the  United  Kingdom-Ireland  (Ireland-Northern  Ireland- 
Scotland) programmes until the end of the 2020. 

The  Commission  underlines  the  fact  that  for  the  next  Multi-Annual  Financial  Framework  it 
has proposed to continue and to strengthen cross-border support for peace and reconciliation 
in the border counties of Ireland and Northern Ireland20. 

Finally, and as a consequence of the withdrawal of the United Kingdom, certain adaptations 
to the rules on statistics are required. In that regard, the Commission has today adopted the 
following act: 

  A  Commission  Delegated  Regulationxiv  on  the  listing  of  the  United  Kingdom  in 
statistics on the balance of payments, international trade in services and foreign direct 
investment. 

6. 

Next steps on contingency 

The  Commission  will  continue  to  implement  its  Contingency  Action  Plan  in  the  weeks  to 
come. It will continue to monitor the need for additional action. 

The  close  coordination  with  Member  States  will  continue,  including  in  sectoral  seminars  in 
the  Council  Working  Party  (Article  50).  The  Commission  will  participate  in  European 
Parliament  and  Council  meetings  on  preparedness  and  contingency  issues  as  often  as 
necessary.  

The  Commission  calls  on  the  co-legislators  to  ensure  the  adoption  of  the  proposed 
legislative acts so that they are in force by the date of the withdrawal of the United Kingdom. 
The  Commission  also  highlights  to  the  European  Parliament  and  to  the  Council  that  it  is 
important for delegated acts to enter into force as rapidly as possible.  

Finally,  the  Commission  reiterates  its  calls  on  Member  States  to  remain  united  also  as 
regards  contingency  action,  refraining  from  bilateral  arrangements  that  would  be 
incompatible  with  EU  law  and  which  cannot  achieve  the  same  results  as  action  at  the  EU 
level. Such arrangements would also complicate the establishment of any future relationship 
between the EU and the United Kingdom.  

20  

COM(2018) 374 final. 

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i  

ii  

iii  

iv  

v  

vi  

vii  

viii  

ix  

x  

xi  

xii  

List of legal acts adopted by the Commission 

Commission Implementing Decision (EU) determining, for a limited period of time, that the regulatory 
framework  applicable  to  central  counterparties  in  the  United  Kingdom  of  Great  Britain  and  Northern 
Ireland is equivalent, in accordance with Regulation (EU) No 648/2012 of the European Parliament and 
of the Council (C(2018) 9139). 

Commission Implementing Decision (EU) determining, for a limited period of time, that the regulatory 
framework  applicable  to  central  securities  depositories  of  the  United  Kingdom  of  Great  Britain  and 
Northern  Ireland  is  equivalent  in  accordance  with  Regulation  (EU)  No  909/2014  of  the  European 
Parliament and of the Council (C(2018) 9138). 

Commission Delegated Regulation (EU) amending Commission Delegated Regulation (EU) 2015/2205, 
Commission  Delegated  Regulation  (EU)  2016/592  and  Commission  Delegated  Regulation  (EU) 
2016/1178 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council 
as  regards  the  date  at  which  the  clearing  obligation  takes  effect  for  certain  types  of  contracts  
(C(2018) 9122). 

Commission  Delegated  Regulation 
(EU)  2016/2251 
supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council as regards 
the date until which counterparties may continue to apply their risk-management procedures for certain 
OTC derivative contracts not cleared by a CCP (C(2018) 9118). 

(EU)  amending  Delegated  Regulation 

Commission proposal for a Regulation of the European Parliament and of the Council on common rules 
ensuring basic air connectivity with regard to the  withdrawal of the United Kingdom of Great Britain 
and Northern Ireland from the Union (COM(2018) 893 final). 

Commission proposal for a Regulation of the European Parliament and of the Council on certain aspects 
of aviation safety with regard to the withdrawal of the United Kingdom of Great Britain and Northern 
Ireland from the Union (COM(2018) 894 final). 

Commission proposal for a Regulation of the European Parliament and of the Council on common rules 
ensuring basic road freight connectivity with regard to the withdrawal of the United Kingdom of Great 
Britain and Northern Ireland from the Union (COM(2018) 895 final). 

Commission  Delegated  Regulation  amending  Delegated  Regulation  (EU)  2015/2446  as  regards  the 
time-limits for lodging entry summary declarations and pre-departure declarations in case of transport 
by sea from and to the United Kingdom of Great Britain and Northern Ireland, the Channel Islands and 
the Isle of Man (C(2018) 9094). 

Commission  proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending 
Council Regulation (EC) No 428/2009 by granting a Union General Export Authorisation for the export 
of certain dual-use items from the Union to the United Kingdom of Great Britain and Northern Ireland 
(COM(2018) 891 final). 

Commission  Decision  of  17  December  2018  on  instructing  the  central  administrator  to  temporarily 
suspend  the  acceptance  by  the  European  Union  Transaction  Log  of  relevant  processes  for  the  United 
Kingdom  relating 
international  credits 
(C(2018) 8707). 

to  free  allocation,  auctioning  and 

the  exchange  of 

Commission  Implementing  Decision  of  17  December  2018  on  amending  Commission  Implementing 
Decision  (EU)  2017/1984  determining,  pursuant  to  Regulation  (EU)  No  517/2014  of  the  European 
Parliament  and  of  the  Council  on  fluorinated  greenhouse  gases,  reference  values  as  regards  reference 
values for the period from 30 March 2019 to 31 December 2020 for producers or importers established 
within  the  United  Kingdom,  which  have  lawfully  placed  on  the  market  hydrofluorocarbons  from  1 
January 2015, as reported under that Regulation (C(2018) 8801). 

Commission Implementing Regulation of 14 December 2018 amending Implementing Regulation (EU) 
No 1191/2014 as regards the reporting of data referred to in Article 19 of Regulation (EU) No 517/2014 
in respect of hydrofluorocarbons placed on the market in the United Kingdom and in the Union  of 27 
Member States (C(2018) 8575). 

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xiii  

xiv  

Commission proposal for a Regulation of the European Parliament and of the Council in order to allow  
for  the  continuation  of  the  territorial  cooperation  programmes  PEACE  IV  (Ireland-United  Kingdom) 
and  United  Kingdom-Ireland  (Ireland-Northern Ireland- Scotland)  in  the context of the  withdrawal of 
the United Kingdom from the Union (COM(2018) 892 final). 

Commission Delegated Regulation (EU) of 19 December 2018 amending Annex I to Regulation (EC) 
184/2005 of the European Parliament and of the Council, as regards the geographical breakdown levels 
(C(2018) 8872). 

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