Category Archives: Brexit

A French body advising young people on their opportunities says French au pair agencies are no longer arranging any placements for young French people in the UK.

This is because of strict new post-Brexit work visa requirements, which do not suit au pair work.

The head of European and international matters at the Centre dinformation et de documentation jeunesse (CIDJ), Valrie Montembault, said: "The problem is there is no au pair status provided for in the UKs new immigration rules and if you go for less than six months [without a visa] you have no right to work.

So the agencies are not sending any more au pairs to the UK. They are sending some to the Netherlands, a few to Malta maybe, but none to the UK.

Of course the UK was the most popular before to improve their English.

Young people looked for a place where people speak an English that is accessible and with an accent that theyve learned at school. In Malta for example people speak Maltese as well. They preferred the UK also because its very easy to get to with the Eurostar."

She said au pairs who she said mostly work for their board and lodging plus pocket money are not really comparable to other full-time salaried workers, but agencies do not want to risk sending them for under six months in a tourist capacity because they do nonetheless receive money, plus there would be problems for their insurance cover and health and social security.

Previously under EU rules there were reciprocal social security arrangements and a recognised status, she said.

She said a UK work visa is now impossible for anyone earning less than a full-time minimum wage in the UK (a UK body bringing over au pairs from France has told The Connexion a minimum salary of 20,000 is being required).

Those coming to the UK on work visas also now have to pay a 624/year health surcharge in order to join the NHS (or 470 for those on student visas), however anyone coming to be an au pair in an 'unofficial' capacity (eg. for less than six months) could face issues over their cover or have to take private insurance, Ms Montembault said.

She added it is possible that families in the UK will still directly advertise for au pairs on the internet, perhaps just offering lodging, but there will be no more official placements via agencies because it would be too risky in view of the lack of a clear status (and it would be impossible for more than six months).

Perhaps something will be done to resolve this, it is still early and we understand some discussions are still taking place, but for the moment its not the case, she said.

The CIDJ has local structures around France, advising young people about their options, including for work and study abroad. It is also part of European youth information network Eurodesk.

Read more from the original source:

Brexit: Au pairs from France will not be sent to UK in 2021 - The Connexion

Almost one in four small businesses which export goods have temporarily stopped shipping to the EU since the end of the Brexit transition period, a survey has found.

Close to a third (32 per cent) have lost goods in transit, and an even greater proportion (34 per cent) have had goods held indefinitely at EU border crossings. Of those that have experienced delays, 36 per cent have suffered hold-ups that lasted more than two weeks.

The Federation of Small Businesses surveyed 1,483 firms between 1 and 15 March. It found that seven in 10 importers and exporters suffered shipment delays when moving goods around the EU in recent weeks.

Around one in 25 have decided to stop selling into the EU permanently after new trading rules came into force at the start of this year, the poll suggested. And some 23 per cent have temporarily stopped sending goods to the trading bloc.

The Federation of Small Businesses (FSB) said some exporters have established, or are considering setting up a presence within an EU country to ease their exporting processes.

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One in 10 are thinking about securing warehousing space in the EU or Northern Ireland, said the report.

Most importers and/or exporters have suffered shipment delays when moving goods around the EU in recent weeks, said the FSB, with one in three losing goods in transit or having goods held indefinitely at EU border crossings.

FSB chairman Mike Cherry said: "At a moment when small firms are doing all we can to return to growth and get our economy firing on all cylinders again, those that do business internationally are being hit with some incredibly demanding, unfamiliar paperwork.

"Three months on from the end of the transition period, what we hoped would prove to be teething problems are in danger of becoming permanent, systemic ones.

"While larger firms have the resources and bandwidth to overcome them regardless, smaller traders are struggling, and considering whether exports are worth the effort any more.

"Unless more is done to ease the admin burden on those that do business overseas, and increase access to markets outside the EU, it will weigh heavy on our efforts to recover from the most severe downturn on record."

Originally posted here:

Brexit: One in four small export businesses have stopped selling to the EU, poll finds - The Independent

Some British expats are "deliberately" ignoring orders to leave Spain despite new Brexit laws meaning those living unregistered face deportation, it has been claimed.

The EU country's authorities have made it clear that rules on residency will change from tomorrow amid unconfirmed reports police in the Costas are ready to boot out 500 'illegal' UK citizens.

Chair of campaign group Bremain in Spain said many are still "burying their heads in the sand" despite the tourist visa deadline approaching in a matter of hours.

She told the Local: The clock is ticking, yet there are still Brits deliberately planning to overstay their welcome.

"They are burying their heads in the sand and assuming well be treated differently from other third country nationals, simply because we are British.

Are you an expat living in Spain whose affected by the changes? Let us know at webnews@mirror.co.uk

I fear many that have ignored the warnings of the consequences of exceeding a 90-day stay are in for a rude awakening."

Spain is clamping down on those who breach the rules on tourist visas, which allow non-nationals to remain for 90 days in every 180-day stretch.

In the past, many have remained beyond the limit and stayed under the radar, avoiding paying taxes.

But under the Withdrawal Agreement, anyone unregistered could be fined or even banned from returning - while criteria for applying for full-time residency has been upped.

Downing Street said its Spanish counterparts are adamant claims police are ready to take action are exaggerated and anyone turned down for residency can remain while they reapply.

The Foreign Office added UK nationals' who are already legally registered to live in Spain prior to January 1 can remain and are protected by law.

Of the 300,000 Brits currently living in the Spanish Costa islands, including the 'Sunshine Coast' of Costa del Sol, a small proportion are estimated to be at genuine risk of deportation.

John Price and Elaine Wilson are among those whose residency application was rejected, and say they are now "on tenterhooks".

They claim it failed because they had not bought private medical insurance before the end of 2020 when the transition phase of Brexit ended.

Ms Wilson, 53, the delay was due to her waiting for the all-clear on her breast cancer, and said they were previously advised they had until March 31.

Mr Price, 51, told the Times : "We dont know if we face fines, a bad stamp in our passports and being banned from entering the Schengen area."

Spain has been rolling out a new system to register permanent foreign residents with biometric cards called TIE but due to so many requests the process has ground to a halt.

Worried Brits have taken to Facebook to ask for advice as they wait for their cards to be processed.

Julie Van P said last night her son's TIE application was sent on December 9 to Almeria and was put into the system seven days later.

But since then there's been "no change from 'in progress'" since then, she said.

She said an agent has since told them the office were still dealing with applications received on December 1.

"Has anyone else using Almeria city experienced similar delays?" she asked. "Its a constant cause of worry."

Moira Carmenate, of the Expat Centre in Costa Blanca South, said the confusing Spanish system has baffled many vulnerable Brits.

She said many elderly people don't have access to social media and have been "unaware of the recent and ongoing changes".

This leaves Brits vulnerable and at the mercy of hearsay, I really feel for them," she added.

Anthony Cook, from Cardiff, is among those who must head back to the UK as the new regulations "have made it impossible to stay", he told Global247News.

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Brit expats ignoring post-Brexit orders to leave Spain and risk deportation - Mirror Online

5 min read30 March

Exclusive: Music industry leaders have urged ministersto give financial help to performers who areunable to take bookingsin the European Union due to post-Brexit touring restrictions.

The havewarned that musicians are "having to cancel tours or turn down work" on a daily basis.

UK Musicwrote to Culture Secretary Oliver Dowden on Monday asking him to disclose how negotiations with EU countries over potentially removing restrictions on touring were going.

Boris Johnsontold the Liaison Committee last week that the government was working "flat out" to address the problems faced by musicians and was having "plenty of conversations" with EU governments.

However, the Prime Minister did not reveal details of which countries the government had spoken to or when. The Musicians' Union's Naomi Pohl saidtheindustry hadn't received a single progress report from the government and had seen "no evidence of any bilateral negotiations".

Urging the Department for Media, Culture & Sport (DCMS) to reveal the state of talks, the letter seen by PoliticsHomesaid:"The more we know about the status and direction of your bilateral talks, the better we will be able to reinforce the work you are doing with our own lobbying efforts.

"We would therefore kindly request regular progress updates on these bilateral negotiations that the Prime Minister referred to, so we can better understand how to support them as effectively as possible".

The music industry is urging the governmenttonegotiate away post-Brexit barriers to European touring before the expected return of live performances on the continentlater in the year.

The cumbersome new rules for UK musicians, actors and performers mean theyand their crewsmustsecurework permits and other costly documentationto work in some EU countries.

They also mean hauliers which carrytheir equipment arelimited to just three stops in thebloc before returning to the UK, which the industry says will maketouring on the continent impossible.

In the letter to Dowden, UK Music Chief Executive Jamie Njoku-Goodwin saidevent organisers in Europe hadstarted making bookings forlater in the yearand that "the prospect of costly visas and work permits for certain countries is already forcing cancellations" on British artists.

"Every day, we hear heartbreaking stories from musicians who are having to cancel tours or turn down work in Europe because the cost of EU visas and work permits makes those opportunities unviable," he told the Cabinet minsiter.

"Some are now having to rely on government welfare support instead of expected performing opportunities.

"I am sure you will agree that a European concert hall paying a British musician to perform is preferable to the British state subsidising them to be silent. It is in our countrys economic and well as cultural interest for us to enable our brilliant musical performers to work internationally".

The letter said the industry was encouraged to hear Johnson lastweek tell the committee of senior MPs that the government "must fix" the problems facing the UK's touring performers.

The Prime Minister said "I totally share the frustration of the sector" and"we must get it totally sorted out," describing the creative industries as a "massively important part of our economy".

However, in the meantime ministersmust give financial supportto performers to help them deal withthenew costs associated withplanning European gigs, the letter said, adding that there was a "compelling case" for them toreceivesupport akin to the financial package created for the fishing industry."While the engagement process with member states takes place, we will need to support musicians that are facing increased costs and help them adjust to what we must hope are temporary barriers. It is therefore vital that government urgently introduce a transition touring fund, that can help musicians and crews with the costs and admin of the new barriers they face," it said.

"In January, the Government introduced a 23m fund to help the fishing industry in 'adjusting to new requirements for exporting'.

"Given the challenges the music industry is currently facing, there is a very compelling case for a similar approach to be taken here, not least given the 5.8 billion economic contribution it makes to the economy in normal times".

The UK music industry generated 2.9bn in exports in 2019, with an estimated 20,000 performers by British artists in EU member states, the letter to Dowdenstressed.

There was no agreement for touring performers in the UK-EUtrade deal struck in December, with both sides blaming each other for the lack of protection forthe industry in the treaty.

The industry is particularly concerned about Spain, Portugal, Croatia and Bulgaria. British performers are set to need permits or visas to work in all fourwhen international touring resumes.

It is not just up-and-coming performers with limited financial means who are set to be impacted by the post-Brexit barriers.

The National Theatre last monthtoldPoliticsHomeit had binnedplans to tourThe Curious Incident Of The Dog In The Night-Timearound Europe after the pandemic due to the cost of the newrules, while New Order's managerwarnedthe iconic band might be forced to skip the continent.

The letter urgedthe government to ensure "the UKs world-leading music industry can continue to be the global success story post-Brexit that it has been for decades.

"In addition to the huge economic and social contribution it makes, the UK music industry boosts our global reputation and plays an intrinsic part in our core national identity.

"It is a sector that should not just be protected, but actively championed and promoted".

A UK government spokesperson said:Weve always been clear that the end of freedom of movement would have implications for professional mobility. However we're working across government and with industry, including through a DCMS-led working group which includes UK Music, on plans to support cultural and creative professionals who temporarily work in the EU.

"The working group will provide new guidance to help artists understand what's required in different countries. We will also be engaging with Member States on the issue and looking carefully at proposals for a new Export Office that could provide further practical help".

Continued here:

Musicians Forced To Cancel EU Gigs "Every Day" Due To Brexit Demand Financial Support From Government - PoliticsHome

Brexit: UK 'can be a global trading nation without EU' says MP

Without a post-Brexit agreement signed on the matter, up to 3,000 people could lose their driving licences after the French government announced all British expats must exchange their UK licence with a French one. This means some commuters risk losing their jobs while some expats who live in France may be forced to move back to the UK. Although some expats have applied to exchange their licence, the French system has rejected them on the grounds no post-Brexit agreement has been confirmed.

France failed to agree a post-Brexit licence agreement and has been hit by an overload of applications, meaning some may lose their driving licence in the next few months.

Amid the pressure on UK expats, the Government has indicated it is working to agree a deal with France, The Guardian reports.

Without a valid licence, drivers could face a 12,808 fine, while if forced to take a driving test in the country, the theory must be done in French.

In a Facebook group for expats living in France, Kim Cranstoun described the situation which is affecting British nationals as a nightmare.

She said: "Id say there are 3,000 who are seriously worried for whom this has really become nightmarish,

"Commuters risk losing their jobs, tradespeople cant work, elderly people have missed medical appointments.

"Many British people in France live in quite remote, rural areas, with little or no public transport.

"Some are thinking of moving back to the UK. Its quite desperate."

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06:45am update: Brexit deal goes to court: Rebels secure landmark challenge on EU's hated NI protocol

A LANDMARK legal challenge against the Northern Ireland Protocol is scheduled to be heard on May 13 - setting up a potentially explosive moment in the post-Brexit relationship between the UK and the EU.

The NI Protocol aims to prevent a hard border on the island of Ireland by ensuring Northern Ireland continues to adhere to some of the EUs rules and regulations - but critics including DUP leader Arlene Foster say as a result it has created a border down the Irish Sea instead.

A group of Brexiteers including former Brexit Party MEP Ben Habib and Jim Allister QC, leader of the Traditional Unionist Voice (TUV) party, have been pushing for a judicial review into the legality of the arrangements.

Last week they launched a crowdfunding page to raise money to cover its costs.

05:30am update: Julie Walters warned of working-class 'revolution' before dubbing Brexit 'disastrous blow'

JULIE WALTERS warned of a "working-class revolution" before she claimed Brexit was a "disastrous blow" to the nation.

The Harry Potter actress is one of the nations most beloved stars and returns to TV screens tonight in the ITV show For The Love Of Britain.

She rose to fame in Educating Rita in the Eighties before forging an impressive career with films including Billy Elliot, Calendar Girls and Mamma Mia!.

The 71-year-old has also been an outspoken critic of Brexit and feared ramifications of Britain leaving the European Union.

04:15am update: 'Brexit is about democracy!' Vine guest slams Owen Jones in tense driving license row

OWEN JONES was slammed for claiming consequences of Brexit is "a lot of bureaucracy" and form-filling.

Journalist Sherelle Jacobs hit out at the Guardian columnist for his claims against Brexit while discussing reports of Britons seeing their driving rights threatened because of bureaucratic changes.

Ms Jacobs insisted that Brexit is about "taking back our democracy" rather than having a deal with the European Union on licences and free movement.

Speaking on the Jeremy Vine show, Mr Jones said: "One of the consequences of Brexit is a lot of bureaucracy.

03:00am update: Brexit snub: Ten EU states refuse to extradite their criminals to UK - letter exposes shun

SEVERAL EU member states will no longer extradite their nationals to the UK to face criminal action because of Brexit.

France, Germany and Poland have told the Home Office of their refusal to allow the extradition of their nationals.

Meanwhile, Austria and the Czech Republic will only hand over suspects to the UK with their permission.

The European Arrest Warrant was introduced in 2004 and obliged member states to arrest and transfer suspects to countries where they were wanted.

02:15am update: Leading economist tells Boris to tear up EU rules to turbocharge Brexit Britain's victory

BRITAIN has been told to stop "doing things the EU way" if the UK wants to succeed outside of the European Union.

The EU has been widely criticised for its glacial rollout as just 11.3 percent of people over the age of 18 have received their first dose of a vaccine, according to yesterday's figures. Only 4.9 percent of people have received both jabs of a vaccine.

Whereas, more than 30 million people in the UK have received at least one jab of a vaccine.

Following the EU's disastrous handling of the coronavirus vaccine rollout, Richard Bootle, one of the City's leading economists, said the UK will succeed outside the EU if it stops "doing things the EU way".

01:15am update: Pound increases gains against euro as Brexit Britain's economy reopens after jab success

THE POUND has continued to gain against the euro as the UK's vastly successful vaccine rollout scheme allows the economy to reopen.

It rose on yesterdays high by 0.2 percent to make a euro worth 85.32 pence. As recently as last December a euro was worth 90 pence.

Commenting on the pounds recent strong performance, an expert put the jump down to Britain's vaccination rollout and the gradual easing of lockdown restrictions.

Stuart Cole, chief macro strategist at Equiti Capital, said: "The sterling outlook remains positive, the combination of continued vaccinations, lifting of lockdown restrictions and rising yields all converging to support the pound."

12:15am update: Can you retire to Spain after Brexit?

THE BREXIT transition period officially ended in January which means rules around living abroad have changed dramatically.

Spain is one of the most popular destinations for retirees from Britain. There are now more than 360,000 British citizens registered as residents in Spain according to official Spanish figures.

The average age of a British expatriate living in the country is 45, having been 50 and over before 2020. But can you retire to Spain after Brexit?

11:30pm update: EU vaccine fury: Brexiteer rage as 'Brussels slimeballs' AGAIN threaten UK with export ban

EU "SLIMEBALLS" have threatened to block vaccine exports to Britain again, a Brexit campaign group has blasted.

EU commissioner Thierry Breton said the UK was totally dependent on the bloc for vaccines as he hinted a blockade was still on the cards.

The French europhiles outburst came just days after the EU spectacularly backtracked on a proposed ban after it threatened to spark a trade war with the UK.

Mr Breton appears to have learned nothing from the spat, arrogantly insisting "the British are unable to conduct vaccination policy on their own".

Oliver Trapnell takes over fromPaul Withers

8pm update: UK 'true friend' of Ireland, not EU! Irish leaders warned about bloc after 'vaccine offer'

The UK's vaccine offer shows that Britain is "Ireland's true friend" not the European Union, Sammy Wilson, the DUP's Brexit spokesman has claimed.

The former minister of finance in the Northern Ireland Assembly commented in the Newsletter that because the UK is reportedly willing to send millions of vaccine doses to Ireland, it should be clear that Britain "is Irelands true friend".

Mr Wilson was speaking following a Sunday Times report that a scheme is being planned to offer 3.7 million Covid jabs to Ireland.

The Sunday Times quoted an anonymous cabinet source close to the Government, and said this move would be the first time the UK exported vaccines to an EU nation.

Mr Wilson said that the UK's move to help Dublin with a shipment of millions of vaccines should make them question who their genuine friends are.

6.15pm update:Sturgeon's shameless bid to woo Brussels: SNP leader sent 31 Christmas cards to EU chiefs

Nicola Sturgeon has flooded EU Commission officials with more Christmas cards than their UK Government counterparts, the Express can reveal.

Freedom of Information requests reveal the Scottish First Minister sent 29 cards to European Commission officials compared to just two cards to UK Government colleagues last year.

Records reveal Ms Sturgeon sent cards to top diplomats including Commission President Ursula von der Leyen and Head of the Taskforce for Relations with the United Kingdom Michel Barnier.

The Scottish First Minister also sent cards to the Prime Minister of Belgium and Iceland along with 59 members of the United States Congress.

German Europe Minister Michael Roth and Foreign Minister Heiko Maas also received penned festive messages from the SNP leader.

4.50pm update:Macron recruits VDL in bid to class Britain a 'rogue state' in latest Brexit punishment

France is pushing for Britain to be classed as a "rogue state" in revenge for Brexit, insiders have warned.

President Emmanuel Macron wants the UK to be treated with the same level of suspicion as Russia, China and Iran.

He has secured the backing of top eurocrat Ursula von der Leyen, who has ordered officials to draw up plans to exclude British scientists from cutting-edge tech projects in collaboration with the bloc.

But a host of EU nations have launched a rebellion against the plot, insisting it would be foolish to shut out UK experts out of spite for Brexit.

One friendly EU diplomat fumed: You cant just put the UK in the same box as China and Iran.

President Macron has enlisted the help of French commissioner Thierry Breton to ensure British, Swiss and Israeli experts are no longer allowed to take part in European science projects.

The pair fear our boffins could leak sensitive information on supercomputers, with military and space applications, to outside power blocks, according to a diplomatic note, seen by Express.co.uk

3.45pm update:Britons now worrying less about Brexit - poll

Britons are now much less worried about Brexit than previously just a matter of weeks after the UK cut all ties with the EU.

Ipsos MORI interviewed 1,009 people from March 5-11.

Respondents were questioned over the big issues they considered for the country, with coronavirus dropping to 49 percent from 72 percent in February, although it remained the single biggest concern.

Brexit fell down the list of worries and was mentioned as a concern by 26 percent of respondents - its joint-lowest level since the EU referendum in June 2016.

3.30pm update: 'Like a little kid!' EU's latest vaccine threats to UK torn apart by Frexit campaigner

Eurocrats' relentless threats to the UK over bans on vaccine exports sparked the furious reaction of Frexit campaigner Charles-Henri Gallois.

The Generation Frexit leader lashed out against French MEP Pascal Canfin after he claimed London will be in a "very complicated" situation next month over vaccine supplies. The Renew MEP is Chairman of the European Parliament's Committee on the Environment and Public Health.

Writing in Le Figaro, Mr Canfin said Europe is "now ready to block exports of AstraZeneca vaccines to the United Kingdom until the company closes its delivery delays".

The comments infuriated Mr Gallois who took to Twitter to lambast the MEP.

He wrote: "Eurofanatics have still not supported the #BrexitFlag of United Kingdom.

"We can hardly be more hateful.

"He looks like the little kid who hasn't done his homework and is trying to cheat."

Paul Withers taking over live reporting from Bill McLoughlin.

2.50pm update: 'Are you sneering at the flag?' Susanna Reid skewers Owen Jones on GMB over Union Flag

Susanna Reid grilled Owen Jones on whether he was "sneering" at the Union Jack during a tense exchange on ITV's Good Morning Britain.

Owen Jones told ITV that he respected the flag and the importance of it to the British people. The political commentator added that he did not feel the current UK Government cannot protect their own people.

Ms Reid said: "Owen Jones, you stand accused of sneering at the flag, how do you respond?"

Mr Jones replied: "No, I think about my granddad who was amongst those who helped save this country from a Nazi invasion and helped save Europe from the Nazis.

"He was at sea, he was bombed twice with that flag flying above him and he was on an open boat.

"People like that fought for our rights and freedoms, I know how much the flag means to people."

2pm update:French MEP orders Brussels to open its eyes - 'London hasn't collapsed after Brexit!'

The rest is here:

Bitter Macron targets thousands of UK expats in France - new papers rejected - Daily Express

The deal reached between HM Government and the European Union on December 24, 2020, does not include any framework for the coordination and mutual recognition of cross-border insolvencies and restructurings. For the purposes of insolvency law, the deal represents a "Hard Brexit."

Therefore, following Brexit, UK insolvency proceedings no longer benefit from automatic recognition across the European Union pursuant to Regulation (EU) 2015/848 of the European Parliament ("EU Insolvency Regulation"), and vice versa (save for those proceedings commenced prior to December 31, 2020). UK insolvency proceedings commenced after December 31, 2020, will, where necessary, need to be recognized in each relevant EU Member State.

Without the benefit of mutual recognition, cross-border insolvency proceedings involving both the European Union and the United Kingdom will undoubtedly become more complex, time-consuming, and expensive as stakeholders, advisers, and insolvency practitioners seek to navigate this new landscape. In many situations, parallel proceedings in multiple jurisdictions may now be required. Going forward, it is hoped that a new framework for the mutual recognition of insolvency proceedings can be agreed between the European Union and the United Kingdom. However, in the short term at least, notwithstanding the increased levels of financial distress and insolvency proceedings that are likely to follow as and when government support programs in the United Kingdom and Europe are withdrawn, mutual recognition of insolvency proceedings does not appear to be a high priority for the European Union and the United Kingdom at this time.

The Status Quo

Before the transition period ended on December 31, 2020, the United Kingdom enjoyed the benefit of the EU Insolvency Regulation. The EU Insolvency Regulation provides, inter alia, a framework for the automatic and mandatory recognition of insolvency proceedings between Member States of the European Union (excluding Denmark). The EU Insolvency Regulation also determines the applicable law in the case of cross-Member State insolvency proceedings.

The New Landscape

Outbound UK Insolvency Proceedings. Following Brexit and the end of the transition period on December 31, 2020, insolvency proceedings involving both an EU Member State and the United Kingdom are now in a rather different position.

If a UK insolvency proceeding requires recognition in the European Union, the company or relevant insolvency practitioner will need to seek recognition in each EU Member State where it is considered expedient to do so. In each casewith the exception of Greece, Poland, Romania, and Slovenia, which have each adopted the UNCITRAL Model Law on Cross-Border Insolvency ("Model Law")the availability of recognition and the terms thereof will depend on any applicable terms for the recognition of a third country under the EU Insolvency Regulation or local laws for the recognition of foreign insolvency proceedings in each relevant Member State. Where a UK insolvency proceeding has been commenced in the United Kingdom, but an EU Member State considers that the center of main interests ("COMI") of the relevant entity is in the European Union, the EU Insolvency Regulation will continue to apply without regard to the UK proceeding.

Schemes and Restructuring Plans. For schemes of arrangement and the new restructuring plan, it was generally considered (but never tested) that the recognition of such proceedings across the European Union fell under the ambit of Regulation (EU) 1215/2012 of the European Parliament and of the Council on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (recast) ("EU Judgments Regulation"). Following December 31, 2020, the EU Judgments Regulation has also ceased to apply to the United Kingdom, and therefore the United Kingdom and European Union will no longer benefit from mutual recognition of civil judgments.

As an alternative to the EU Judgments Regulation, there are a number of different routes pursuant to which English schemes and restructuring plans may be recognized in Europe. These routes include the Hague Convention and Regulation (EC) No. 593/2008 of the European Parliament ("Rome I"), both of which continue to apply to the United Kingdom and the European Union in the context of civil proceedings. The Hague Convention provides for the recognition of exclusive jurisdiction clauses where both contracting parties have agreed to the exclusive jurisdiction of a contracting state. Similarly, Rome I seeks to uphold and recognize the governing law of a contract as agreed between contracting parties. Like the EU Judgments Regulation, the application of the Hague Convention and Rome I have not as yet been tested in respect of schemes and restructuring plans.

Going forward, the United Kingdom has applied to join the Lugano Convention. Parties to the Lugano Convention include the European Union, Switzerland, and Norway. The Lugano Convention provides a framework for the recognition of civil law judgments between contracting states in a similar way to the EU Judgments Regulation. Given the generally accepted principle that schemes sanctioned by the English court constitute civil law judgments, it was anticipated that the Lugano Convention would provide an alternative route for the recognition of schemes and restructuring plans within the European Union and beyond.

However, in the recent case of Re gategroup Guarantee Limited [2021] EWHC 304 (Ch), the English High Court held that a restructuring plan constituted a bankruptcy proceeding and therefore fell outside the scope of the Lugano Convention. There are a number of distinguishing features between a scheme and a restructuring plan, and in coming to its decision, the court placed great emphasis on these differences. In particular, while a company may propose a scheme irrespective of its financial state, in order to propose a restructuring plan: (i) the company must have encountered, or is likely to encounter, financial difficulties that are affecting, or will or may affect, its ability to carry on business as a going concern; and (ii) the purpose of the restructuring plan must be to eliminate, reduce, prevent, or mitigate the effect of any of the financial difficulties noted in (i) above. Accordingly, the context in which a restructuring is proposed could be entirely different for a scheme or a restructuring plan and may justify the potential classification of a restructuring plan as a bankruptcy proceeding, but not a scheme. While the decision in Re gategroup does not directly affect schemes, this decision does create greater uncertainty as to the basis for recognition of both schemes and restructuring plans in Europe. Further, it may follow that restructuring plans will now similarly fall within the bankruptcy exception to the Hague Convention, thereby further limiting the available frameworks for the recognition of restructuring plans in Europe.

Inbound EU Insolvency Proceedings. Any EU insolvency proceedings commenced after December 31, 2020, will similarly cease to benefit from automatic mutual recognition in the United Kingdom. However, there are a number of different routes in the United Kingdom pursuant to which foreign companies and officeholders can seek recognition in the United Kingdom of foreign insolvency proceedings. These routes include:

The grant of recognition and/or the provision of assistance pursuant to one of the above routes does not replicate the same terms as are applicable under the EU Insolvency Regulation. However, such frameworks: (i) do provide a clear and tested procedure for recognition of foreign proceedings; and (ii) are not dependent on there being reciprocal arrangements in place for the recognition of English insolvency proceedings. The existing regime in the United Kingdom will therefore undoubtedly assist foreign companies and insolvency practitioners in coordinating cross-border insolvency matters involving UK companies and/or assets.

For money judgments only, the Administration of Justice Act 1920 and the Foreign Judgments (Reciprocal Enforcement Act) 1933 each provide a regime for the recognition of debt claims. However, utilization of such regimes is dependent on equivalent arrangements being available to assist UK parties in the jurisdiction seeking the assistance of the English court.

The Rule in Gibbs. As a matter of English law, a contract governed by English law may be amended, discharged, or otherwise compromised pursuant to an English proceeding only, unless the relevant counterparty has submitted itself to the jurisdiction of the foreign proceeding. Submission to the jurisdiction of a foreign proceeding can occur in a number of ways, including a creditor submitting a proof of debt or voting in the relevant foreign proceeding.

Prior to December 31, 2020, the Rule in Gibbs was not applied while the United Kingdom was subject to the EU Insolvency Regulation. However, post-Brexit, contracts governed by English law will need to be carefully considered by all stakeholders in the context of any restructuring proceeding that attempts to compromise the rights of creditors with English law-governed contracts without such creditors submitting to the laws of the relevant jurisdiction.

In practice, a foreign proceeding that seeks to compromise the rights of creditors pursuant to an English law-governed contract may still (subject to the eligibility criteria being satisfied) be recognized in the United Kingdom, for instance pursuant to the CBIR. However, recognition does not mean that the English courts will be prepared to enforce the terms of the foreign proceeding on a creditor who has not submitted to the jurisdiction of the foreign court. This is a different and complicated question that will need to be considered on a case-by-case basis.

Jurisdiction of English Courts. As a consequence of the United Kingdom no longer being subject to the EU Insolvency Regulation, by virtue of the Insolvency (Amendment) (EU Exit) Regulations 2019, the English courts will no longer be limited to opening certain insolvency proceedings, such as administration, in those situations where a company has its COMI in the United Kingdom. In certain circumstances, this may provide additional flexibility to open proceedings in the United Kingdom where this was not previously possible. Issues of recognition will still need to be considered on a case-by-case basis, but this increased flexibility could be helpful in some cross-border situations.

Outlook

The EU Insolvency Regulation undoubtedly provides an important framework for the recognition of cross-border insolvency and restructuring situations. The fact that the United Kingdom and the European Union will no longer enjoy the benefits of mutual recognition of insolvency proceedings and civil judgments is regrettable, but not fatal.

The CBIR will provide an important gateway into the United Kingdom for the recognition of EU insolvency proceedings. The implementation of the Model Law across the European Union would similarly go some way to restoring the confidence of mutual recognition in EUUK insolvency proceedings under the EU Insolvency Regulation, even if recognition under the Model Law is secured by court application as opposed to being automatic.

In the meantime, English law finance documents retain the primacy conferred on them by the Gibbs Rule, which, in spite of significant hostile commentary from other jurisdictions, continues to hold that foreign insolvency proceedings cannot discharge debts put in place by an English law contract. Moreover, the fact that the overwhelming majority of standard LMA-form international financing agreements will benefit from the protection of Rome I will be of some reassurance to certain stakeholders in the interim. Schemes and restructuring plans will therefore continue to play an important role in cross-border restructurings both within the European Union and in respect of non-EU companies that may continue to access schemes and restructuring plans in much the same way as before.

Moving forward, the Lugano Convention could provide an alternative route for the recognition of schemes. However, in the case of restructuring plans, the decision in Re gategroup has, for now, ruled out the possibility of the Lugano Convention providing any framework for the recognition of restructuring plans. In the case of restructuring plans, on the other hand, the decision in Re gategroup has, for now, ruled out the possibility of the Lugano Convention providing any framework for the recognition of restructuring plans. In any event, the United Kingdom is not yet a signatory to the Lugano Convention (the European Union and Denmark have yet to give their support to the United Kingdom's accession). It is also worth noting that there would be a delay of three months between the United Kingdom's accession and it taking effect.

However, before further steps are taken to re-homogenize insolvency and recognition procedures between the United Kingdom and the European Union, stakeholders should prepare for the need to implement more complex and carefully planned restructurings, including, for example, parallel proceedings both in the United Kingdom and relevant EU Member States, in order to achieve certainty of outcome in any given situation.

Robin Muir, an associate in the London Office, assisted in the preparation of this article.

More:

Uphill Struggles in the Sunlit Uplands? The Brexit Deal and UK-EU Insolvencies - JD Supra

The Scottish red meat processing industry has lost around 7.3m since the UK left the EU at the start of this year.

The Scottish Association of Meat Wholesalers (SMAW) stated that exports to the continent have been affected by mistakes in paperwork and varying interpretations of new rules in place since the Brexit transition period ended.

There are higher certification costs and currently no electronic tracing network, leaving the new system dependent on paperwork.

The SMAW estimates that January this year saw a decrease of 2020 volumes up to 25%. This meant that beef exports are estimated to have fallen by approximately 3m from a baseline estimate of 3.7m.

Lamb exports meanwhile, are estimated to have fallen by around 1.5m from January 2020 levels of around 2m.

In February, volume increased by 40% from last year, with beef exports estimated to have fallen by 1.8m from February 2020, which had a baseline level of 3m.

Lamb exports are estimated to have fallen by 1.1m from February 2020 levels of around 1.8m.

Martin Morgan, executive manager of SMAW, said: Combine January and February, then you have an estimated reduction in beef exports of around 4.7m and lamb exports of 2.6m, amounting to 7.3m of lost business overall for Scottish red meat processors.

The fall in export volumes immediately after the UKs exit was very much in line with our expectations as member businesses adapted to the extra level of paperwork and the associated increased in overhead costs.

Hopefully the slight increase we have experienced during February will accelerate in the months ahead, or we risk losing valuable and hard won business in mainland Europe.

Morgan also explained that some of the products originally processed in Scotland would be transferred internally to a sister plan in England for bulking up before being exported to EU customers.

This comes after the British Meat Processors Association (BMPA) member survey revealed that they expected additional trading costs each year of between 90m to 120m, with most companies expecting a permanent loss of at least 20% of their total business experts - while some expected it to be as high as 50%.

The EU accounts for most of UK meat sold overseas. Global exports reached 2.1bn in 2019, with imports of 6.6bn.

Nick Allen, chief executive at the BMPA, said that one large UK meat processor faced 3m of extra annual transport and certification costs after previously making around 10m a year in profits.

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Read the rest here:

Brexit red tape has cost the Scottish meat industry 7.3 million so far this year - Insider.co.uk

A pedestrian passes skyscrapers in the City of London.

Photographer: Jason Alden/Bloomberg

Photographer: Jason Alden/Bloomberg

Britain and the European Union took their first step since Brexit to cooperate on financial services, agreeing on a new forum to discuss market regulation.

The move could help finance firms in the City of London to eventually win back some access to the single market they lost when the U.K. left the EU.

The two sides have agreed a memorandum of understanding on financial services, the U.K. Treasury said in a statement. The content and substance of the deal has been finalized, and the two sides are now working on the formal process of validation.

Technical discussions on the text have now been concluded, the press release says, adding that formal steps need to be undertaken on both sides before the MoU can be signed but it is expected that this can be done expeditiously.

The memorandum sets out a framework for regulatory cooperation and a joint forum for discussing rules and procedures as well as the sharing of information. It is separate from any decision on equivalence, a series of unilateral rulings that each side can make that offer market access to financial services.

The pound rose 0.6% to a session-high $1.3812 immediately after Bloomberg reported the news earlier.

Its a positive for sure, said Jordan Rochester, currency strategist at Nomura International Plc. The market had come to expect further standoffs on financial regulation and the details still need to be sorted out.

Since Brexit took effect at the beginning of 2021, London-based financial firms have been largely unable to operate in the bloc, forcing banks like JPMorgan Chase & Co. and Goldman Sachs Group Inc. to move billions of dollars in assets and thousands of staff to the continent. The trade agreement signed by the two sides last year largely sidelined the finance industry, and the EU has said since that its in no rush to grant equivalence findings that would restore British firms trading rights.

Brussels has fretted that the U.K. is veering from EU standards, taking it further away from equivalent status. The lack of agreement has put Londons decades-long dominance of European finance under threat and left many U.K.-based finance firms that wish to do business inside the EU saddled -- perhaps indefinitely -- with the added complexity and cost of supporting operations in both the U.K. and the bloc.

Read more about Brexits impact on the City of London

While the MOU process is entirely separate to equivalence, some EU officials have said that securing a common framework around certain financial services rules could help unlock some limited equivalence decisions allowing U.K. firms access to the wider EU market.

We know we would want to make progress after the MOU around some issues, Mairead McGuinness, the blocs commissioner for financial services told journalists this month, while warning that divergence would hamper any equivalence rulings.

How Equivalence Holds Key to Post-Brexit Banking

An earlier draft of the agreement seen by Bloomberg says the U.K. Chancellor of the Exchequer and the European Commissions top financial services official should meet twice a year to discuss regulation. It also says the forums activities include:

With assistance by Alex Morales, Greg Ritchie, Silla Brush, and Aoife White

(Updates with U.K. Treasury statement in third and fourth paragraph.)

Before it's here, it's on the Bloomberg Terminal.

Read more:

Brexit: UK, EU Reach Post-Brexit Agreement on Financial Regulation - Bloomberg

The UK and EU have already begun to diverge in the way they oversee financial markets as hopes the two will reach a broad agreement on supervisory equivalence in the wake of Brexit fades.

Britain has outlined tweaks to areas including the rules surrounding equity, fixed income and commodities trading just months after the end of the Brexit transition period on December 31.

The subtle rule changes strike at the contrasting philosophies between the EU and UK on how markets should be regulated.

Among the potential changes, the UK plans to scrap caps on the amount of trading done in dark pools, private venues where investors can trade shares without signalling their plans to the rest of the market in advance.

It is also weighing changes to how much information is provided publicly both before and after the completion of trades in the stock and bond market, and to remove limits on the amount of commodities contracts traders can hold.

The EUs priority is to develop a more harmonised internal capital market. By contrast UK politicians view Brexit as the chance to return to restore powers and discretion to regulators and exchanges, lost by layers of detailed and prescriptive EU rulemaking.

UK politicians want to give watchdogs greater leeway to write technical policy; exchanges and trading venues may also have greater freedoms in policing their users and products, according to a Lords Committee reviewing the future of UK-EU relations.

The UK was always an outlier in Europe, said Kay Swinburne, vice-chair of financial services at KPMG and a former member of the European parliament.

Swinburne drew a comparison with the US system: In the US, self-regulatory organisations take on a lot more responsibility rather than relying on the regulator. The EU has never believed a financial market infrastructure is suitable to be self-regulated, she added.

Alignment between Britain and the EU is largely dependent on the EU recognising the UKs standards as equivalent. With the UK looking to diverge, the EU has approved only two temporary permits, which grant UK institutions more direct access to customers in the bloc.

But politicians and business executives attachment to the framework is waning and its value diminishing with every passing week. You cant have divergence and equivalence, said Mairead McGuinness, the EUs financial services chief, on Tuesday.

If youd asked us in the early autumn wed have said that equivalence is vitally important for every area and need to be sorted but things have developed. Equivalence has a short shelf life, said Baroness Rita Donaghy, chair of a House of Lords committee reviewing the future of UK-EU relations.

She urged the UK to strike a close relationship with the EU but admitted: The atmosphere at the moment is rather cool, and that doesnt help.

European rulemaking was often a balancing act between Britain, France and Germany. Now that the UK has departed, the EU is going back to its bank-based system and Britain will have much more flexibilityto adapt its rules than the EU, said Karel Lannoo, chief executive of European think-tank CEPS.

It reminds me of the [wholesale] changes we have gone through the last 30 years. The UK had a diverse, very much self-regulatory system before the single market started, he noted.

Nevertheless, the UKs new system may leave parliament with less ability to scrutinise rules and hold regulators accountable, Baroness Donaghy warned. Government and regulators now hold significant power in setting financial services regulation.

Still, while the UK and EU are likely to go separate ways on important parts of financial rulemaking, there are also areas where they may overlap.

This year both London and Brussels will change unsuccessful parts of the mammoth banking and markets legislation designed to improve the financial system after the 2008 crisis, such as Mifid II, Solvency II for insurers and CRR, which covers bank capital.

The EU may also mimic the UKs plans on failed trades and both are looking at the rules to boost competition in Europes futures markets. The so-called open access regime allows investors to use a clearing house of their choice but they have repeatedly been delayed.

Even then, there may be nuanced but important differences. In a series of quick fixes to Mifid II, Brussels has raised the cap on the amount of commodities contracts traders can hold, to 300,000 lots per trader.

But the UK is looking to go further because its markets, which include Brent crude oil futures, are much bigger and more global, according to three people familiar with the governments thinking.

Under consideration are plans to let exchanges manage traders who hold large positions. The exchange would also decide limits to the size of blocks of trades that are agreed privately, away from the market.

A talking shop, to enhance regulatory co-operation and compatibility between London and Brussels, is expected to be finalised by the end of the month.

But the accord is likely to be rare common ground as each side uses Brexit as a chance to strike out and tailor regulation of major markets like equities, futures and fixed income to their own philosophies. As McGuinness noted on the EUs equivalence decisions: Theres no rush.

See the rest here:

UK and EU begin diverging on financial regulation after Brexit - Financial Times

The UK Government and EU Commission trumpeted their Brexit trade deal, struck at the end of December, as comprehensive, the biggest yet. But a closer inspection of the EU-UK Trade and Cooperation Agreement (TCA) renders these statements largely illusory for the pharma sector. While pharma companies grapple with the effects of Brexit, there are undoubtedly a number of ways that the TCA benefits the sector, while leaving significant issues unanswered. Andrew Shindler takes stock of the deal and considers potential future difficulties.

Surprisingly, although the TCA is voluminous at 1250 pages, it is not comprehensive for most regulated industries. Its main substance claims to cover trade, but the only sectors with specific provisions are transport, fisheries, energy and aviation. Medicinal products are mentioned only in passing. Medical devices do not feature at all.

The most important rule is on trade in goods. This rule applies across all sectors and enshrines the fundamental principle allowing goods that originate in one market to be exported to the other without tax, duty or quota. This applies equally to medicinal products and medical devices as to any other type of goods.

However, given the importance of origin, businesses now need to check their supply chains against detailed origination criteria to determine whether their products or devices qualify as tax and duty-free. As an example, merely repackaging or relabeling goods in the UK which have been imported from a third country, is insufficient.

Even where products do originate in the UK or EU, thus qualifying for tax and duty-free status, this does not mean they can cross the border without friction. The system requires customs formalities, including a statement of origin. Exporters must keep copies of records proving origination for four years and importers must also keep records in most cases.

This general rule on exporting and importing goods free of tax, duty and tariff is significant in enabling the continuing flow of medicines and medical devices between the EU and the UK. However, for the reasons described below, it remains an imperfect solution for the pharma sector.

Intellectual property regimes remain largely parallel

Intellectual property underpins the pharma sector. Fortunately, the UK and EU recognise its importance in the TCA which has a dedicated IP chapter, affirming their commitment to TRIPS. TRIPS maintains minimum standards, such as making patents available for medicinal products and medical devices and a minimum 20 year patent term.

SPCs are preserved in both legal systems by a provision that the EU and UK are required to grant additional periods of protection for medicinal products after patent expiry to recognise the delay in obtaining marketing authorisations (MAs). The IP chapter of the TCA has specific provisions on SPCs and data/market exclusivity. Although, the length of the period is left to the parties to determine, the EU will simply retain its current SPC regulation, which broadly provides a maximum five-year extension, plus an additional six months where there is sufficient paediatric data. Meanwhile, the UK has introduced a parallel system with the same periods, although a UK medicine could end up with a shorter extension because the period starts on the earlier of the EU MA and the UK MA.

The EU and UK must also protect regulatory data submitted to obtain MAs against disclosure to third parties, unless protected against unfair use or there is an overriding public interest in disclosure. The protection extends to rejecting third party regulatory submissions and preventing third parties from marketing products which rely on that data without the applicants consent.

As with SPCs, the period of protection is left to the parties to determine, but both the EU and the UK will maintain the existing 8+2+1 regime.

The Medicinal Products Annex

The TCA mentions medicinal products only fleetingly in its main body, but contains a specific Medicinal Products Annex. Unfortunately, this is thin gruel. Although potentially wide in scope, covering marketed human and veterinary products, advanced therapy products, APIs and investigational products, and with lofty objectives, its only concrete provisions for businesses relate to good manufacturing practice (GMP).

The GMP provisions require the EU and UK to recognise the others manufacturing facility inspections and accept its GMP documents. However, each party can still conduct its own inspections and can suspend recognition in certain circumstances. The parties must notify each other of material change in their GMP requirements and can terminate the mutual recognition arrangements if they consider the others changed requirements inadequate, after further discussion.

The rest of the Annex is confined to high level regulatory cooperation. Even here, the obligation is weak, generally only to endeavour to take the steps described, such as consulting the other on proposals that change its technical regulations and cooperating in promoting internationally agreed scientific and technical guidelines.

The Annex applies only to products, and not to medical devices.

UK medicines are now subject to testing and certification by an EU qualified person on export to the EU on a batch-by-batch basis and a UKCA mark will be required to market medical devices in the UK this will not be recognised in the EU where a CE mark will still be required.

Mind the gap

The sizeable gap in the TCA is the EU and UKs failure to agree on mutual recognition of conformity assessments, approval bodies, product markings or labelling, other than the very limited provisions on GMP.

Mutual recognition which would have involved each party recognising the others certifications as complying with its own standards. Without it, medicinal products and medical devices must be shown to meet the requirements of both separate markets, if they are to be sold there. Pharmaceutical, biotech and medical device companies must therefore now comply with two distinct regulatory regimes, which may diverge increasingly over time, to market their products in both the UK and the EU.

To take two practical examples, which make this process onerous for businesses:

The UK has unilaterally offered transitional provisions that will smooth some imports in the short term. It will continue to accept EU batch-testing until the end of 2022 and CE marked devices until 30 June 2023. These do not apply in reverse. There are also grace periods of up to 12 months, depending on the class, for registering devices for the new UKCA mark.

Further changes on the horizon

The TCA includes a chapter titled Technical Barriers to Trade. Aimed primarily at regulatory cooperation in relation to new standards, this does not solve the problem described above, although it may have a mitigating effect on regulatory divergence.

This chapter also requires the UK and EU to cooperate on market surveillance and product safety, including regular information exchange, co-operative enforcement and coordinated product recalls.

While it is to be hoped that these provisions will limit divergence in standards, the obligations are loose and there is no guarantee that the UK and the EU will follow the same path. Indeed, on 11 February the UK Government passed the Medicines and Medical Devices Act 2021, giving it sweeping powers to amend existing regulations.

For the pharma and device sector, the TCA is a mixed blessing. While its general rule allowing products across the border without tax, duty or quota is of huge importance, the glaring omission of mutual recognition considerably weakens that benefit. Whether the provisions on cooperation will mitigate this weakness or merely serve as a face mask for regulatory divergence remains to be seen.

About the author

Andrew Shindler is partner of Commerce and Technology at Locke Lord (UK) LLP. Andrew has broad experience over thirty years working in the life sciences and other sectors. He specialises in commercial transactions, including licensing and R&D agreements, manufacturing and distribution arrangements, joint ventures and spin outs. Andrew is also an expert on GDPR. He has led award-winning commercial teams, notably Commercial Law Firm of the Year and Corporate Team of the Year Mid Market.

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The Brexit deal; shot in the arm or kick in the teeth for the pharma sector? - - pharmaphorum