EU issues no deal Brexit warning: Firms told to scrap hopes of contingency extension

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The vice president of the European Commission warned the Continent’s financial services industry should not expect the European Union to offer any further assistance despite the looming prospect of Britain leaving the bloc without an agreement. Instead, Mr Dombrovskis said financial traders should make the most of the “contingency measures” developed by the Commission to avoid immediate chaos in the event of a no-deal Brexit. He refused to offer any guarantees that the Commission could extend the temporary measures despite the fact that they are due to expire just months after October 31.

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Mr Dombrovskis told the Financial Times: “We have been very clear in calling on industry to prepare for different possible scenarios, including a no-deal Brexit.”

He warned repeated delays to Brexit do not provide an excuse for financial services firms for slowing down their no deal preparations.

The eurocrat said firms had already been “given more time to get ready for a situation where the UK is outside of the single market and there is no transition period”.

Last year, the Commission released its no deal contingency measures to help alleviate any disruption if Britain leaves the EU without an agreement.

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Firms based in Europe will be granted temporary access to clearing houses to settle euro-dominated contracts, in order to end fears that Brexit might create a cliff-edge for trillions of euros of financial derivatives.

Banks had urged Brussels to avoid the risks associated with not allowing contracts to remain open post-Brexit.

Despite responding to the concerns, EU officials insisted that access to the temporary measures will expire on March 30, 2020.

The original end dates were agreed given Britain’s expected exit being penned in for March 29, 2019.

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EU issues no deal Brexit warning: Firms told to scrap hopes of contingency extension

The vice president of the European Commission warned the Continent’s financial services industry should not expect the European Union to offer any further assistance despite the looming prospect of Britain leaving the bloc without an agreement.

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