European Commission implements “no-deal” Brexit Contingency Action Plan in specific sectors

Given the continued uncertainty in the UK surrounding the ratification of the Withdrawal Agreement, as agreed between the EU and the UK on 25 November 2018 – and last week's call by the European Council (Article 50) to intensify preparedness work at all levels and for all outcomes – the European Commission has today started implementing its “no deal” Contingency Action Plan.

Today's package includes 14 measures in a limited number of areas where a "no-deal" scenario would create major disruption for citizens and businesses in the EU27. These areas include financial services, air transport, customs, and climate policy, amongst others.

Financial services

After a thorough examination of the risks linked to a no deal scenario in the financial sector, the Commission has found that only a limited number of contingency measures is necessary to safeguard financial stability in the EU27.

The Commission has therefore adopted today the following acts:

• A temporary and conditional equivalence decision for a fixed, limited period of 12 months to ensure that there will be no immediate disruption in the central clearing of derivatives.
• A temporary and conditional equivalence decision for a fixed, limited period of 24 months to ensure that there will be no disruption in central depositaries services for EU operators currently using UK operators.
• Two Delegated Regulations facilitating novation, for a fixed period of 12 months, of certain over-the-counter derivatives contracts, where a contract is transferred from a UK to an EU27 counterparty.