UK military, businesses preparing for ‘no-deal’ Brexit as PM Theresa May meets with EU leaders

UK's Prime Minister Theresa May arrives on March 21, 2019 in Brussels on the first day of an EU summit focused on Brexit. European Union leaders meet in Brussels on March 21 and 22, for the last EU summit before Britain's scheduled exit of the union. (AFP)
Updated 21 March 2019
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UK military, businesses preparing for ‘no-deal’ Brexit as PM Theresa May meets with EU leaders

  • May is meeting EU leaders in Brussels on Thursday in attempt to get support for Brexit delay
  • The Bank of England warned in November that the British economy could shrink by a massive 8 percent

LONDON: Britain's defense ministry has started up a no-deal Brexit operations centre in a nuclear-bomb-proof bunker in central London, a spokesman said on Thursday.

"It's a team that's ready to support any action if it becomes necessary," the spokesman said, adding that the new centre has "all the right infrastructure".

"As we get closer to a theoretical or possible no-deal, this is the place where the response could be co-ordinated", the spokesman said.

Britain is due to leave the European Union on March 29 without a deal, unless one can be agreed in time or an Brexit extension is implemented.

The defense ministry in December said 3,500 military personnel would be on stand-by to help government departments for "any contingencies" in case of a no-deal outcome.

The spokesman said those troops were now "at readiness."

The military's crisis management operation for a no-deal Brexit, which is dubbed "Operation Redfold", was activated at the beginning of this week.

UK companies have also ratcheted up their preparations for a disorderly “no-deal” Brexit as best they can over the past couple of months, the Bank of England said.

With the prospect of a chaotic Brexit potentially eight days away, a survey by the central bank’s agents showed that around 80 percent of companies “judged themselves ready” for such a scenario, in which the country crashes out of the European Union with no deal and no transition to new trading arrangements with the bloc. That’s up from around 50 percent in an equivalent survey in January.

To prepare, some firms have moved jobs and operations to the EU to continue to benefit from its seamless trade. Many have had to learn how to file customs declarations and adjust labels on goods. Exporters of animals are learning about health checks they will need to comply with.

According to the bank’s survey, however, many of those companies preparing for a “no-deal” Brexit said “there were limits to the degree of readiness that was feasible in the face of the range of possible outcomes in that scenario.”

There’s only so much companies can do, for example, to prepare for new tariffs and exchange rate movements.

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Britain appears headed for a “no-deal” Brexit on March 29 if Prime Minister Theresa May fails to win parliamentary support for her withdrawal agreement with the EU.

She met with EU leaders in Brussels on Thursday in an attempt to get support for a delay to the country’s departure date to June 30. EU leaders have said a short extension would have to be conditional on her Brexit plan getting parliamentary backing and have indicated they would only be willing to back a delay to May 22, the day before elections to the European Parliament.

After two heavy rejections in parliament, there are doubts as to whether she will be able to get parliamentary approval. What would happen next is uncertain.

European leaders, including those from France and Luxembourg, have said any extension will be granted dependent on May's deal passing a third parliamentary vote.

The Bank of England warned in November that the British economy could shrink by a massive 8 percent within months, though Governor Mark Carney has indicated the recession will be less savage, partly because of heightened preparedness.

According to the minutes of the latest meeting of the bank’s nine-member Monetary Policy Committee, at which the main interest rate was kept at 0.75 percent, rate-setters warned “Brexit uncertainties would continue to affect economic activity looking ahead, most notably business investment.”

Brexit uncertainty has dogged the British economy for nearly three years. In 2018, the economy grew by 1.4 percent, its lowest rate since 2012, even during what was then a global upswing. Business investment was down 3.7 percent in the fourth quarter from the year before.
 


Woman shot dead in N.Ireland in ‘terrorist incident’

Updated 15 min 19 sec ago
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Woman shot dead in N.Ireland in ‘terrorist incident’

  • A car-bombing and the hijacking of two vans in Londonderry earlier this year were blamed on a dissident paramilitary group
  • A 1998 peace deal largely brought an end to three decades of bloodshed in Northern Ireland between republican and unionist paramilitaries

LONDON: A woman has been shot dead during riots in the city of Londonderry in Northern Ireland and the killing is being treated as a terrorist incident, police said Friday.
Images posted on social media showed a car and van ablaze and hooded individuals throwing petrol bombs and fireworks at police vehicles.
It was not immediately clear who the woman was or who shot her.
“Sadly I can confirm that following shots being fired tonight in Creggan, a 29-year-old woman has been killed,” Assistant Chief Constable Mark Hamilton said in a statement on Twitter.
“We are treating this as a terrorist incident and we have launched a murder enquiry.”
The violence came in the run-up to the Easter weekend, when Republicans opposed to British presence in Northern Ireland mark the anniversary of a 1916 uprising against British rule.
A car-bombing and the hijacking of two vans in Londonderry (also known as Derry) earlier this year were blamed on a dissident paramilitary group.
Arlene Foster, leader of the Democratic Union Party, which is in favor of Britain’s presence in Northern Ireland, described the death as “heartbreaking news.”
“A senseless act. A family has been torn apart. Those who brought guns onto our streets in the 70s, 80s & 90s were wrong. It is equally wrong in 2019. No one wants to go back,” she wrote on Twitter.
A 1998 peace deal largely brought an end to three decades of sectarian bloodshed in Northern Ireland between republican and unionist paramilitaries, as well as British armed forces, in a period known as “the Troubles.”
Some 3,500 people were killed in the conflict — many at the hands of the Irish Republican Army (IRA).
Police have blamed a group called the New IRA for the flare-up in violence in recent months.
Some have expressed fears that recent attacks could be a sign that paramilitaries are seeking to exploit the current political turbulence over Northern Ireland and its border with the Republic of Ireland caused by Brexit.
Michelle O’Neill, the deputy leader of Irish republican party Sinn Fein, condemned those responsible for the killing.
“My heart goes out to the family of the young woman shot dead by so-called dissidents,” she wrote on Twitter.
“This was an attack on the community, an attack on the peace process and an attack on the Good Friday Agreement,” she added, while calling for calm.
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