EU issues call to get ready

Commission: Officals say remaining 27 member states should prepare for ‘significant disruption’

The European Commission has issued a warning to governments, businesses and citizens in the 27 remaining EU states to prepare for “significant disruption” as a result of Brexit.

Brussels officials said a no-deal cliff-edge withdrawal in March 2019 cannot be ruled out, and warned that “preparation must therefore be stepped up immediately at all levels and taking into account all possible outcomes”.

It comes after the Government announced it will produce around 70 “technical notices” over the coming weeks, setting out necessary preparations in the UK for a possible EU exit without an agreement.

Top Whitehall mandarins warned MPs of “horrendous consequences” if a cliff-edge withdrawal was accompanied by “spiteful or ignorant” behaviour on either side.

The chief executive of the Civil Service, John Manzoni, told the Commons Public Administration and Constitutional Affairs Committee: “We will be ready for a no-deal Brexit. Not everything will be perfect.”

But he warned: “We have to prepare in the event that there are either spiteful or ignorant or whatever activities by third parties.

“That obviously makes it very uncomfortable with some horrendous consequences, and that’s what we have got to try and do our best to mitigate against.”

Customs chiefs told Parliament that introducing Prime Minister Theresa May’s favoured Facilitated Customs Arrangements at borders and ports could alone add extra costs of £700 million a year on business.

Jim Harra, of HM Customs and Excise, told the House of Lords EU External Affairs Committee that the additional cost would arise because traders would have to work out which of two different tariff rates they need to pay on each crossborder movement.

Mrs May was making her first visit to the Irish border since the referendum, amid growing unrest on Conservative backbenches over her Chequers plans for post-Brexit relations with the EU.

Shipley MP Philip Davies became the third Tory to declare he has submitted a letter of no confidence in her leadership, saying he had lost trust in her ability to deliver Brexit.

The European Commission released its report as Dominic Raab made his first visit to Brussels as Brexit Secretary for talks with chief EU negotiator Michel Barnier.

Flanked by Mr Raab, Mr Barnier said: “We have a lot of work to do in the 13 weeks until the October European Council meeting, including finalising the withdrawal agreement”, adding: “It is a matter of urgency to agree a legally operative backstop for Ireland and Northern Ireland. We need an all-weather insurance policy.”

Mr Raab said: “As Michel has told us, the clock is ticking so I’m looking forward to heating up the negotiations and making sure we get the best deal.”

The 16-page Commission document warned of the possibility of long queues at borders and ports, disruption to planes and new restrictions on data transfers.

A no-deal Brexit could mean “significant delays” to transport and a “significant drawback” for trade, while UK individuals and organisations could become ineligible to apply for EU grants and bid for EU contracts, it said.

Products may require new authorisations and certifications, while professionals may need to have their qualifications recognised by an EU27 state as well as the UK.

The Commission insisted that its advice to undertake contingency planning was not “a sign of mistrust in the negotiations”, which are supposed to deliver a withdrawal agreement and a political declaration on future relations by October.

“The Commission is devoting very significant resources and committing great efforts to achieve an agreement,” it said. “However, the outcome of negotiations cannot be predicted.”

“We will be ready for a no-deal Brexit. Not everything will be perfect”