(FT paywall) EU drafts tough contingency plans for no-deal Brexit
Based on statements by diplomats who have seen the draft.
Ramps up the pressure on the UK to deal
https://www.ft.com/content/5606f710-c8ac-11e8-ba8f-ee390057b8c9
Brussels is planning to rattle the UK by unveiling tough contingency measures for a no-deal Brexit that could force flight cancellations
and leave exporters facing massive disruption if Britain departs the EU without an exit agreement in March.
...the plan is likely to encompass a limited number of initiatives over a maximum of eight months, diplomats who have seen the document told the Financial Times.
Notably, the EU is not planning special arrangements for customs or road transport and only limited provisions for financial services
⁃ a decision that, if seen through, would cause long queues and operational difficulties at ports and airports.
⁃
... the timing of the document indicates that Brussels may use it as leverage in the talks,
only to end up revising no-deal plans.
An EU diplomat familiar with the preparations said the commission was planning to adjust the tone of the draft according to progress made in negotiations over coming days.
“It will be harder if it all gets stuck and softer if things are going well,”
...
airlines such as Ryanair and British Airways parent International Airline Group would not be given any extra transition time to meet the bloc’s regulatory requirement of 50 per cent EU-based ownership for a European operating license.
...
The commission has thus far resisted outlining details of its plans for a no-deal Brexit for fear it would disrupt tense negotiations.
But with just six months to go before Brexit, EU member states have pressed Brussels to speed up its preparations in case no deal is agreed in time.
Brussels will outline general principles for deciding the fields requiring special measures,
which must only mitigate significant disruptions in areas of “vital union interest”.
The measures would be applied by the EU until the end of 2019 on a unilateral basis.
They could be revoked with no notice, according to diplomats.
The plans are intended to enable basic air services, allowing flights to land and fly straight back to the UK,
and to extend air safety certificates and security exemptions for UK travellers in transit.
Visa-free travel is envisaged for British citizens, as long as it is reciprocated.
...
...unnecessary to relax customs and agricultural controls.
Instead, it urges member states to be ready to enforce the EU’s full import rule book from the first day of Brexit.
Road hauliers would have their access rights limited to a system of permits that only covers 5 per cent of existing traffic.
There would be no mechanism to extend EU licenses, according to a diplomat who had seen the document.
...
“The UK becomes a rule-taker not a rulemaker,” the paper states