According to a media report, the German government is in favor of Britain leaving the European Union without a withdrawal agreement. There is a "high probability" for a disorderly Brexit on October 31, quoted the Handelsblatt from an internal paper of the Federal Ministry of Finance. As the new British Prime Minister Boris Johnson insisted on an exit agreement without the backstop special arrangement for Northern Ireland, the member states would have to take the scenario of a no-deal Brexit seriously.
It is currently "unpredictable that Prime Minister Johnson will change his tough bargaining position," it said. According to the report, the paper from the European Department serves to inform Federal Finance Minister Olaf Scholz (SPD) about the Brexit developments under Johnson. The Ministry of Finance did not want to comment on this.
The Handelsblatt further reported that the Ministry of Finance expected Johnson to announce a breakthrough or failure at the G7 summit in Biarritz at the end of August. For the EU, it was important to stick to its current line.
More than 50 laws and measures decided
The remaining 27 EU Member States refuse to renegotiate the exit agreement. Even if the so-called backstop is removed from the exit agreement, as Johnson wished, the British government was not sure about the approval of the parliament, write the experts of the Federal Ministry of Finance. The preparations for the disorderly Brexit on German and EU side are "largely completed".
The EU Commission is not planning any new emergency measures, and the preparations to date would require no change, it goes on to say. In the case of individual transitional arrangements - such as for the clearing houses in the financial sector - the time limit would have to be adjusted at most because of Brexit's postponement. The federal government has passed more than 50 laws and measures in the event of a disorderly Brexit.
The Ministry of Finance lists in the document the transitional arrangements in the field of tax and finance, as the Handelsblatt writes. There is an agreement between the German financial regulator Bafin and the British FCA on cross-border financial services. In the customs administration is to be counted on a "punctually increased handling and control expenses". This should be compensated by "flexible personnel deployment" and "IT-based optimization". But it would also create 900 new jobs in the authority.