Prepare for Brexit ‘no deal’ plan, MPs told

LONDON: It would be a serious dereliction of duty if the British government failed to plan for the possibility of not reaching an exit deal with the EU, a committee of lawmakers said in a report published on Sunday.

Prime Minister Theresa May, who will trigger the formal divorce process by the end of this month, has said she would be prepared to walk away from negotiations without an agreement because “no deal is better than a bad deal”.

Parliament’s Foreign Affairs committee warned a breakdown in negotiations would be a “very destructive outcome”, causing economic harm to both sides as well as creating uncertainty and legal confusion.

“There is a real prospect that negotiations will fail,” said committee chairman Crispin Blunt, a lawmaker in May’s ruling Conservatives.

“The government should therefore require each department to produce a ‘no deal’ plan identifying the likely consequences and making proposals, including guidance to individuals and businesses, to mitigate potential risks,” he said.

Issues such as the sudden return of a customs border between Northern Ireland and the Republic of Ireland, a gap in regulations and confusion about the future of UK citizens in the EU and vice versa were among the consequences of a “no deal” situation highlighted by the committee.

Meanwhile, EU governments are sharpening their red lines while maintaining general unity as London prepares for Brexit.

Although the EU’s 27 other governments have differing priorities, they remain united in wanting Michel Barnier, the bloc’s chief negotiator, to drive a hard bargain.

Some maintain they want to keep as close ties to the UK as possible, others can barely conceal their ambition to punish the UK for leaving the club. Practically all say the UK needs to be seen to be worse off outside the EU than in it.