The European Commission said it has begun implementing 14 contingency measures to limit possible disruption in certain sectors in case Britain exits the European Union on March 29, 2019, without a deal on their future relationship.
"These measures will not — and cannot — mitigate the overall impact of a "no-deal" scenario, nor do they in any way compensate for the lack of stakeholder preparedness or replicate the full benefits of EU membership or the terms of any transition period," the commission said Dec. 19, 100 days before Britain is due to exit the bloc.
The commission decided to grant Britain a temporary and conditional equivalence designation of 12 months for the central clearing of derivatives and 24 months for central depositaries services. It also adopted regulations to facilitate the renewal of certain over-the-counter derivatives contracts, where a contract is transferred from a U.K. counterparty to one in the EU post-Brexit, for a fixed period of 12 months.
The EC also adopted measures to avoid full interruption of air traffic between the EU and the U.K. and ensure basic connectivity between the two parties in the event of a no-deal Brexit. On customs and export of goods, the commission proposed a regulation to include the U.K. to a list of countries that has the authorization to export dual-use items throughout the EU.