EU to allocate financial aid for EU businesses, workers and farmers in case of no-deal Brexit
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Reuters reports that the European Commission on Wednesday will propose financial help for European Union businesses, workers and farmers if Britain crashes out of the bloc without any agreement.
To facilitate expert advice and coordination among EU governments in case of a no-deal Brexit, the Commission will set up a call centre and a hotline telephone number available in all 27 EU countries and all EU languages.
British members of parliament on Tuesday triggered a vote that could allow them to stop Prime minister Boris Johnson pursuing a “no-deal” Brexit, a challenge that the government warned would prompt the prime minister to seek an election on Oct. 14.
On Wednesday, the EU executive arm will propose, as part of the EU’s preparation for the worst “no-deal” scenario, using the European Solidarity Fund, normally used to help victims of natural disasters in the EU, to cushion the financial blow for some EU countries most exposed to trade with Britain.
According to a document seen by Reuters, the Commission also wants to use the European Globalisation Adjustment Fund, created to help EU workers who lose jobs due to globalisation, to be used for those dismissed after a “no-deal” crashing out, the document said.
The EU’s state aid rules, regulating how governments can help companies, “offered flexible solutions for national support measures” for smaller EU companies with large exposure to Britain, in case of a no-deal, it said.
The United Kingdom would also have to honour its financial obligations to the EU, and preserve the Good Friday Agreement that brought peace to the island of Ireland after decades of sectarian violence.
Britain would also have to preserve the integrity of the EU single market, the Commission will say. Both issues have been dealt with in the rejected divorce agreement.
