Last chance negotiations between London and Brussels. What is the EU plan B in case of no-deal Brexit, how are Romanians affected?



[ad_1]

British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen will speak by phone Sunday afternoon for a conclusion on post-Brexit trade negotiations.

Sunday is the deadline set by the UK and the EU to decide on the outcome of trade negotiations and announce their failure or a new extension.

On the last day, talks between the two sides began in Brussels at 09:00 local time, as officials did not show much optimism.

British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen stressed on Friday that the UK is very close to completing its secession from the EU in three weeks without an agreement.

“The talks continue overnight, but the EU offer on the table remains unacceptable,” said the British source.

“The prime minister will do his best, but it is absolutely clear: any agreement must be fair and respect the fundamental position that the UK will be a sovereign nation in three weeks,” added the source.

Hopes that the UK and the European Union could reach a trillion dollar trade deal by the end of the year appear to be fading fast. British Prime Minister Boris Johnson declared that he is awaiting a major offer from the EU, to overcome the impasse that the negotiations have entered. Speaking to journalists, he encouraged citizens to see this moment as an opportunity. “As of January 1, there is no doubt that all companies, especially those that export, will have to make changes and we have been very clear in that regard, but there are also opportunities. And there are opportunities for companies in this country to think more globally than they can today. Citizens only look at the limits of the European Union market, but they could see globally, “said the prime minister.

Britain is highly likely to leave the European Union without a trade deal, European Commission chief Ursula von der Leyen told the 27 heads of state and government during Friday’s summit.

The UK left the European Union in January, but remains an informal member until December 31, when it leaves the EU bloc after 48 hours. Both sides say they want a deal, but negotiations are stalled.

Johnson and von der Leyen gave negotiators until Sunday to try to reach an agreement.

“The situation is difficult. The main obstacles remain,” von der Leyen said. “We will see on Sunday if an agreement is possible.”

The pound fell, stocks fell, and default volatility increased as investors began to fear the risk of a chaotic end to the five-year Brexit crisis.

A Brexit without a trade deal would affect northern European economies, generate shock waves in financial markets, could wreak havoc on borders and the delicate supply chains that stretch across Europe and beyond.

EU leaders have warned member states to maintain a united stance on the post-Brexit transition without a deal, forcing Boris Johnson’s government to demand more negotiations after January 1, 2021, according to sources cited by the Financial Times, according to Mediafax.

According to a diplomatic note cited by FT, Brussels has warned EU member states not to do anything to mitigate the effects of the lack of an agreement with Great Britain. An EU official explained that Brussels clearly understands that the expiration of the post-Brexit transition without a deal can have very unpredictable consequences. “Everybody understands that there is no guarantee that the British will come back to the negotiating table,” the European official said on condition of anonymity.

“Momentum must be maintained” so Britain has to get back to the negotiating table “as soon as possible,” another Brussels official explained.

Member state governments have been advised that it is important not to unilaterally grant the UK facilities similar to those enjoyed by European Union countries. Thus, the government of Boris Johnson must demand the resumption of negotiations with the European Union to reach an agreement on post-Brexit relations.

Angela Merkel, the Chancellor of Germany, who currently holds the presidency of the Council of the European Union, said that Brussels was prepared for the scenario of the expiration of the post-Brexit transition without a deal if the United Kingdom does not agree to maintain the standards of the EU. “There is still a possibility of a deal. I don’t think we will know tomorrow whether we will achieve it or not, at least I cannot promise, but we will continue to work,” Angela Merkel told the lower house of parliament in the Bundestag on Wednesday. Germany. Angela Merkel stressed that the European Union is prepared for the failure of the negotiations. “We are also prepared, if we cannot accept British conditions, to go down a path of non-agreement. One thing is clear: it must be possible to guarantee the integrity of the single market,” Angela Merkel said.

The Berlin leader highlighted the importance of ensuring equal standards for companies in the European Union and the United Kingdom. “Now we start from a similar and harmonized legal system, but in a few years the judicial systems will develop separately in terms of environmental, labor and health policies. (…) We need equal standards, not only for now, but also for the future (…) ”, stressed Angela Merkel.

The French representative of the European Commission, Thierry Breton, Commissioner for the Internal Market, recently warned that there would be no post-Brexit deal if the UK did not accept EU rules. “I understand very well that our British friends want to benefit from the Community market. If the British accept these rules, they will be welcome. If they do not accept them, there will be no agreement,” said Thierry Breton.

Brussels has warned the London government that it will have to comply with social, labor and environmental standards in order to reach a free trade agreement with the European Union. Downing Street wants conditions similar to those granted by the European Union to Canada, South Korea and Japan, but EU officials have pointed out that the situation is different in terms of standards, in the context of the geographic proximity between the European Union and UK.

The European Union has published contingency plans in the event of a collapse in negotiations for a British divorce deal. The UK’s departure from the EU is scheduled to take shape on December 31, but no post-Brexit deal has been initialed despite intense negotiations in recent days.

Plan B aims to ensure the land and air connection between the UK and the European Union, but also allow both sides to access fishing in each other’s waters, according to the BBC.

The European Commission has confirmed that from 1 January the ban on travel within the EU by non-EU citizens will apply to British citizens, as a precautionary measure in the context of the pandemic. Currently only eight states with low infection rates are exempt, but there are no plans for the UK to be on the list.

However, Member States have control over their own border decisions and can make individual decisions about access for British citizens.

The Commission proposes four emergency measures “to alleviate some of the major disruptions” in the absence of an agreement:

– Guarantee the provision of “certain air services” between the UK and the EU for six months, provided the UK does the same.

– Allow the use of air safety certificates on EU aircraft without interruption to avoid grounding.

– Guarantee basic connectivity for the transport of goods and passengers by road for six months, provided that the United Kingdom does the same.

– Allow reciprocal access to fishing by UK and EU vessels in each other’s waters for one year or until an agreement is reached.

In the absence of an agreement, the future trade relationship between the EU and the Kingdom will be governed by the rules of the World Trade Organization, synonymous with customs duties or quotas, which feeds the risk of a new economic shock superimposed on the pandemic. .

A no-deal Brexit would lead to the loss of 12,000 jobs in Romania

A Brexit without an agreement with the EU would mean that the Romanian textile and footwear industry could lose 12,000 jobs, that is, 2% of GDP and 1.4% of the total turnover of the economy, points out Ziarul Financiar.

Romania produces clothing, textile fibers and footwear worth 22 billion lei (4.4 billion euros) per year, or the equivalent of 2% of GDP, and the industry has a share of about 1, 3-1.4% in the total business figure of the local business environment in 2019. The local market is one of the largest producers of profiles in Europe and even in the world.

A no-deal Brexit could leave 130,000 seamstresses in Europe unemployed, and Romania would be the third most affected country, according to a report by the European Confederation of Clothing and Textile Manufacturers. Specifically, 12,000 jobs in the Romanian textile industry could be at risk as UK Prime Minister Boris Johnson does not reach an agreement with Ursula von der Leyen, President of the European Commission, in negotiations on the bilateral relations. Brex. The parties announced an extension of the talks until Sunday in an attempt to find a solution.

“Clothing, footwear and textile production will be among the industries most affected by a no-deal Brexit, as more than 100,000 jobs in the EU and another 30,000 in the UK could disappear,” according to an announcement. of the European Confederation of Garment and Textile Manufacturers (Euratex) which carried out an impact study together with the University of Leuven.

In the event of a Brexit without a deal, Italy, Romania and Portugal would be hit the hardest by the EU bloc, each losing 27,000, 12,000 and 11,000 jobs respectively. This means that in Italy more than a quarter of employees in the field would lose their jobs, while in Romania the proportion is 12%, according to Euratex.

If you like this article, we hope you will join the community of readers on our Facebook page, by liking it below:

[ad_2]