At the special summit on 10 April 2019, EU leaders agreed to delay Brexit until 31 October 2019.
The extension provides the UK government with six additional months to get a Brexit deal approved by the UK Parliament. It is flexible (“flextension”), meaning that the Brexit saga may end earlier than October 31. To be emphasized is that a no-deal Brexit is still possible. The potential outcomes may be summarized as follows :
If the UK approves the Brexit agreement before the European elections which take place between 23 - 26 May, the UK will leave the EU with a deal.
If the UK fails to approve the Brexit agreement and does not take part in the European elections, the UK will leave the EU without a deal on the 31st of May (the no-deal scenario).
If the UK takes part in the upcoming European elections and approves the deal before 31 October, the UK will leave the EU with a deal.
If the UK does not manage to approve the agreement before 31 October, the UK will leave the EU without a deal on October 31.
Even though the “no-deal Brexit” is off the table for the moment, there is still a high likelihood that the UK leaves the EU without a deal. Therefore, businesses should continue preparing for a no-deal scenario. In the event of a no-deal Brexit, businesses will be impacted, amongst other things, through increased lead times, customs formalities, duties and new regulatory rules.
For support, reach out to our multidisciplinary Brexit team that has unparalleled practical and pragmatic experience, and can share best practices on how to mitigate the impact on your business to the maximum extent possible. Our unique Brexit impact assessment tool can provide a view on the magnitude of the financial impact of a no-deal scenario on your business based on readily available information, with almost no need for investment of your management’s time.
Next dates to watch out for :
23 April - UK Parliament’s session reopens after recess
25 April - deadline to submit the European Parliament elections nominations and candidate lists
23 - 26 May - European Parliament elections
20 - 21 June - European Council meeting in Brussels
31 October - New Brexit deadline