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19 December 2018

Brexit: European Commission implements “no-deal” Contingency Action Plan in specific sectors


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Given the continued uncertainty in the UK surrounding the ratification of the Withdrawal Agreement and last week's call by the European Council (Article 50) to intensify preparedness work at all levels and for all outcomes – the EC has started implementing its “no deal” Contingency Action Plan.


Today's package includes 14 measures in a limited number of areas where a "no-deal" scenario would create major disruption for citizens and businesses in the EU27. These areas include financial services, air transport, customs, and climate policy, amongst others.

The Commission considers it essential and urgent to adopt these measures today to ensure that the necessary contingency measures can enter into application on 30 March 2019 in order to limit the most significant damage caused by a "no-deal" scenario in these areas.

These measures will not – and cannot – mitigate the overall impact of a "no-deal" scenario, nor do they in any way compensate for the lack of stakeholder preparedness or replicate the full benefits of EU membership or the terms of any transition period, as provided for in the Withdrawal Agreement. They are limited to specific areas where it is absolutely necessary to protect the vital interests of the EU and where preparedness measures on their own are not sufficient. As a rule, they will be temporary in nature, limited in scope and adopted unilaterally by the EU. They take into account discussions with Member States and are in addition to the preparedness measures that have already been taken, as set out in the two previous preparedness Communications. [...]

Sector-specific regulation

Financial services

After a thorough examination of the risks linked to a no deal scenario in the financial sector, the Commission has found that only a limited number of contingency measures is necessary to safeguard financial stability in the EU27.

The Commission has therefore adopted today the following acts:

  • A temporary and conditional equivalence decision for a fixed, limited period of 12 months to ensure that there will be no immediate disruption in the central clearing of derivatives.
  • A temporary and conditional equivalence decision for a fixed, limited period of 24 months to ensure that there will be no disruption in central depositaries services for EU operators currently using UK operators.
  • Two Delegated Regulations facilitating novation, for a fixed period of 12 months, of certain over-the-counter derivatives contracts, where a contract is transferred from a UK to an EU27 counterparty. [...]

Customs and the export of goods

In a no deal scenario, all relevant EU legislation on the importation and exportation of goods will apply to goods moving between the EU and the UK. The Commission has today adopted the following technical measures:

  • A Delegated Regulation to include the seas surrounding the UK in the provisions on time-limits within which entry summary declarations and pre-departure declarations have to be lodged prior to leaving or entering the Union's customs territory.
  • A proposal for a Regulation to add the UK to the list of countries for which a general authorisation to export dual use items is valid throughout the EU.

It is essential, however, that Member States take all the necessary steps to be in a position to apply the Union Customs Code and the relevant rules regarding indirect taxation in relation to the United Kingdom. [...]

Text of the Communication

AFME welcomes temporary equivalence decisions for UK CCPs and CSDs in a no deal Brexit



© European Commission


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