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Neither Britain nor EU ready for no-deal Brexit: report

Source: Xinhua| 2019-07-29 19:59:15|Editor: Shi Yinglun
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LONDON, July 29 (Xinhua) -- Neither Britain nor the European Union (EU) is ready for a no-deal Brexit by Oct. 31, a British business group said in its latest report.

In a report released on Sunday night, the Confederation of British Industry (CBI) urged Britain and the EU to capitalize on the new political dynamic presented by the appointment of a new British prime minister to work toward a Brexit deal as well as step up no-deal preparations.

The report "What comes next? The business analysis of no deal" came after Britain's new Prime Minister Boris Johnson took office last week, vowing to deliver Brexit by Oct. 31 with "no ifs, no buts." Johnson's predecessor Theresa May resigned after failing to win approval for her Brexit deal from the British parliament.

"There is a fresh opportunity to show a new spirit of pragmatism and flexibility. Both sides are under-prepared, so it's in all our interests. It cannot be beyond the wit of the continent's greatest negotiators to find a way through and agree to a deal," said Josh Hardie, deputy director general of the CBI.

"But until this becomes a reality, all must prepare to leave without one," Hardie added.

The CBI has backed government efforts to help prepare for an increasingly possible no-deal Brexit by publishing practical steps Britain, the EU and businesses can take to reduce the worst effects, the report said.

Having analyzed Brexit preparations by Britain, the EU and businesses in 27 key areas of Britain's relationship with the EU that are most important to businesses, the report concluded that despite existing mitigations, disruption is likely in all those areas immediately after a no-deal Brexit.

The report found that larger companies, particularly those in highly-regulated areas such as financial services, have well-thought-out contingency plans in place, while smaller ones are less well-prepared.

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