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Flags in front of the EU Commission: devastating consequences for companies
Photo: DPA
Brexit: =
The European economy is sounding the alarm in the face of a lack of progress in negotiations on a trade agreement between the UK and the EU after the Brexit transition period.
"We are sleepwalking into the abyss," warned the general director of the employers' association Business Europe, Markus Beyrer, in a statement on Monday.
Great Britain left the EU at the end of January, but will still be part of the EU internal market and customs union until the end of the year.
To prevent a hard break with tariffs and trade barriers, the EU and Great Britain are negotiating a follow-up agreement.
The transition phase ends in three months.
If an agreement is reached, it would have to be ratified by the European Parliament, the EU states and the British Parliament.
So far there has been little progress in the negotiations.
Business Europe warns of the catastrophic consequences of a so-called no deal.
In view of the complexity of the issues still to be clarified and the little time that remains, the economy is alarmed.
"Moving from full market integration to a no-deal scenario would have devastating consequences for companies already struggling with the effects of Covid-19," Beyrer said.
He called on both sides to show willingness to compromise.
Prime Minister Boris Johnson's Single Market Act could become the decisive hurdle in the negotiations.
The EU accuses Great Britain of violating essential parts of the 2019 withdrawal agreement with this legislative proposal.
Because it would amount to the erosion of special rules for Northern Ireland, which are supposed to prevent a hard border with the EU member Ireland.
The EU is calling for the plans to be withdrawn by the end of this month.
It doesn't look like that.
The dispute dampens the prospects for a follow-up agreement that will regulate the trade relations of both sides from the beginning of 2021.
This should be negotiated again from Tuesday on.
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