Brexit report: social and economic impact on cities, regions and businesses
The European Committee of the Regions (CoR) yesterday published a report in Brussels detailing the consequences of Brexit on trade and the economy in the EU27 regions and cities. Based heavily on data gathered from a joint survey with EUROCHAMBRES, the report reveals a lack of awareness, information and preparation and recommends greater flexibility in state aid rules and inter-regional cooperation.
A year ahead of the scheduled departure of the UK from the EU, uncertainty surrounding the nature of the future EU27-UK relationship complicates the process of adjustment for many EU regions. This uncertainty which was also not eased out by the latest transition deal is compounded in many cases by a lack of analysis of the likely impact on local economies. In turn, this restricts local and regional authorities’ capacity to formulate strategies to address the adverse effects of the UK leaving the EU on their economies.
"The results of both this report and the CoR's territorial impact assessment show that there will be no winner from Brexit and that Europe's local and regional authorities already know it. After the UK, Irish regions will be the most economically and socially impacted by Brexit because of their close relations and direct border with the UK. However, regions in Germany, the Netherlands, Belgium, France, Italy and Spain also anticipate a severe impact. Whilst still difficult to assess the precise consequences for each European region or city, it is already possible and necessary to take action at European level to counter negative impacts and soften the blow ", said Michael Murphy, Head of the Irish delegation in the CoR and member of Ireland's Tipperary County Council.
The CoR and EUROCHAMBRES conducted a survey of regional and city authorities and chambers of commerce to feed into a process of analysing and debating the exposure of EU27 regions and cities to Brexit. This resulted in the report presented at a joint briefing in Brussels yesterday (read the full report here), summarising the expected economic and social effects and the impact on public administrations, and setting out conclusions and recommendations.
"The survey results show that chambers sense a greater exposure to the effects of Brexit. This is not surprising given that EU27 businesses will directly feel the additional friction in trade that will result from the UK leaving the EU customs union and single market ", said Arnaldo Abruzzini, CEO of EUROCHAMBRES. "We must now seek to minimize that friction, which requires precise quantitative and qualitative feedback, so it’s worrying that this process also reveals a lack of analysis in many regions of the specific effects of Brexit. This needs to be addressed swiftly if the EU27’s regions, cities and businesses are going to be well-placed to adjust effectively."
The report concludes that there is a need for more specific, localised impact studies to get a better understanding of the potential impact and of the linkages across and between business sectors. Awareness raising and information sharing will further help businesses, notably SMEs, to be better prepared to face the ensuing structural and economic adjustments.
The report also echoes proposals from the CoR's opinion on “The European Commission Report on Competition Policy 2016”, drafted by Mr Murphy, to allow greater flexibility of State aid rules. It further highlights the importance of continued interregional cooperation between EU27 and UK regions post-Brexit and the need for territorial cooperation programmes and macro-regional strategies to share information and pool resources.
The CoR started a process of analysing and debating the exposure of EU27 regions and cities to Brexit, to prepare for the repercussions of the UK's withdrawal and the potential asymmetric territorial impact within the EU27 (with some regions substantially affected). The process resulted in a shared report and included a discussion between CoR members and the chief EU negotiator Michel Barnier, the adoption of a resolution, a study, a Territorial Impact Assessment workshop and a survey in cooperation with EUROCHAMBRES.
The dedicated CoR interregional group on Brexit, made up of 29 members from seven Member States, will meet for the first time in Brussels on 23 March 2018. Meanwhile, EUROCHAMBRES Brexit Working Group will convene on 20 March and EUROCHAMBRES President, Christoph Leitl, will speak at a European Parliament Trade (INTA) Committee on Brexit and future trading relations on 21 March.
You can find pictures of the event free of use on our flickr gallery.
European Committee of the Regions
Tel. +32 (0)2 282 2366
Tel. +32 (0)2 282 0892
Latest News from
ESMA to recognise three UK CCPs in the event of a no-deal Brexit18/02/2019 16:25:00
The European Securities and Markets Authority (ESMA) has announced that in the event of a no-deal Brexit, three central counterparties (CCPs) established in the United Kingdom (UK) – LCH Limited, ICE Clear Europe Limited and LME Clear Limited – will be recognised to provide their services in the European Union (EU).
Ensuring basic air connectivity in the event of no-deal Brexit – Council sets its position18/02/2019 14:10:00
The EU is taking measures to mitigate the severe disruption to air connectivity for passengers and freight between the EU and the UK in the event of the UK leaving the EU without a deal.
New EU rules cut red tape for citizens living or working in another Member State as of tomorrow18/02/2019 13:43:00
New EU rules to cut costs & formalities for citizens living outside their home country now apply across the European Union.
EU steps up efforts to keep unsafe products off the internal market18/02/2019 11:25:00
The EU is introducing new rules which will ensure that products placed on the single market are safe & compliant with EU legislation protecting public interests, such as health & safety in general, health & safety at the workplace, consumers, the environment and public security.
Security Union: EC welcomes political agreement on new rules for explosive precursors15/02/2019 16:25:00
The reinforced rules will ensure stronger safeguards & controls on the sale of dangerous chemicals that can be misused for the production of home-made explosives.
EC welcomes European Parliament's support for investment screening framework15/02/2019 15:37:00
Following the vote, the EU is one step closer to putting in place a Europe-wide framework for screening foreign direct investment.
Fair labour mobility: EC welcomes agreement on the European Labour Authority15/02/2019 13:25:00
The EC, the European Parliament and the Council havereached a provisional agreement on the EC’s proposal to establish a European Labour Authority (ELA).
EU negotiators agree to set up new European rules to improve fairness of online platforms' trading practices15/02/2019 11:43:00
The European Parliament, the Council of the EU and the EC reached a political deal on the first-ever rules aimed at creating a fair, transparent & predictable business environment for businesses and traders when using online platforms.
Agreement with Singapore set to give a boost to EU-Asia trade15/02/2019 09:25:00
The trade and investment agreements between the EU and Singapore have received the approval of the European Parliament. The Parliament has also given its green light to the Partnership and Cooperation Agreement.
Fisheries: EC welcomes provisional political agreement on new technical conservation measures14/02/2019 16:25:00
The European Parliament and the Council agreed on the EC's proposal for decentralised & simplified technical rules, giving fishermen a stronger say in deciding on the best measures for sustainable fishing adapted to their specific needs.