Business Europe which is an umbrella body for business lobby groups in UK and European Union has written a formal letter to EU commission stating that even EU is not prepared to handle a no-deal Brexit situation and this lack of preparation could cause major disruptions. The letter warns about problems in supply of essentials like drugs, followed by interruptions in data and information sharing followed by disruption in flights. Though EU said that it is in regular contact with stakeholders, document suggests that both EU and UK businesses are worried about current stalemate and economic repercussions of no-deal Brexit.
Brexit negotiator from EU Michel Barnier had stated early this month that the region is ready to manage a no-deal Brexit situation which is inevitable, without any issues but CBI’s head of EU Nicole Sykes declared that neither Britain nor EU administration is ready for the situation. She insisted that in view of the situation’s emergency both sides have to come closer to a deal at the earliest and adopt ways to keep the cost of this agreement as low as possible for citizens on both sides of the border.
The no-deal Contingency Action Plan revealed by EU Commission in December 2018 had plans for temporary regulatory roll overs for continuing uninterrupted air traffic between Britain and EU as also to continue financial services. But the recent letter from business groups suggests that this document is not sufficient to handle the sway of transactions that occur between both regions. Economists believe that Britain will be worse affected by no-deal situation compared to EU both in short and long term due to heavy reliance on each other for imports and exports. To tide over the crisis and look for a viable plan Business Europe group has requested for a meeting with deputy secretary general of EU Celine Gauer.