BREXIT: ‘DEAL OR GET REAL’
MPs’ emergency exit plan plea
FAILURE to reach an agreement on Brexit will be “very destructive” for both Britain and the EU, warn MPs.
The Prime Minister intends to start the Article 50 withdrawal process within days.
Theresa May is due to give a major Commons statement on Tuesday, sparking speculation she will formally trigger Brexit.
And the PM, right, has repeatedly said she would rather walk away from the EU without a settlement than agree to a “bad deal”.
But the Commons Foreign Affairs Committee said there was a real possibility that exit talks could end with no deal.
And it said that if ministers fail to instruct all departments to draw up a “no deal plan” it would be a “serious dereliction of duty”.
The committee said: “It is clear from our evidence that a complete breakdown in negotiations represents a very destructive outcome leading to mutually-assured damage for the EU and the UK.
“Both sides would suffer economic losses and harm to their international reputations. Individuals and businesses in both the UK and EU could be subject to considerable personal uncertainty and legal confusion.”
The committee warned that a demand from Brussels for a large lump sum payment, with no offer of preferential trading arrangements, might be the only option on the table. And it claimed there was no sign that ministers had any contingency plans in place.
It said: “The possibility of ‘ no deal’ is real enough to justify planning for it. This is all the more urgent if the Government is serious in its assertion that it will walk away from a ‘bad’ deal.”
It added: “Last year, we concluded that the previous government’s decision not to instruct key departments to plan for a Leave vote in the EU referendum amounted to gross negligence.
“Making an equivalent mistake would constitute a serious dereliction of duty by the present administration.”
Committee chairman Crispin Blunt said: “The Government has repeatedly said that it will walk away from a ‘bad’ final deal.
“That makes preparing for ‘no deal’ all the more essential. The responsibility on the negotiators is substantial.”
Departure planning is being led by the Department for Exiting the European Union, headed by MP David Davis.
A spokesman said: “As the Secretary of State has said, a responsible government should prepare for all potential outcomes.
“He briefed the Cabinet last month on the need to prepare not just for a negotiated settlement, but for the unlikely scenario in which no mutually satisfactory agreement can be reached.”