Europe Starts Freezing Britain Out Of EU Contracts

Tyler Durden's picture

Diplomatic relations between the UK and EU are fast approaching zero degrees Kelvin.

One day after Theresa May not only cemented, but allowed herself Brexit negotiating breathing room with her stunning, yet cunning decision to announce snap elections which would only boost the leverage of her party, Brussles has retaliated and as the FT reports, Brussels is starting to "systematically shut out British groups from multibillion-euro contracts" while urging companies to migrate to one of the 27 remaining EU members.

The Brussels note suggests that tensions between the UK and EU mey deteriorate to the point where even Bremainers may turn on Brussels:

In an internal memo seen by the Financial Times, top European Commission officials have told staff to avoid “unnecessary additional complications” with Britain before 2019, highlighting an administrative chill that is biting even before Britain leaves the bloc.

 

It explicitly calls on EU staff to begin encouraging the UK-based private sector to prepare for the “legal repercussions” of Brexit and consider the need “to have an office in the EU” to maintain their operating permits. Agencies are also told to prepare to “disconnect” the UK from sensitive databases, potentially on the day of Brexit.

The memo, which was sent a week after May officially triggered Article 50 exit talks last month, outlines how Britain will immediately lose out on money and influence. It urges agencies to “take account” of the fact that Britain may be “a third country” within two years, including in appointing staff and in awarding billions of euros of direct contracts for research projects or services.

“Apart from the legal requirement for a contracting party to be established in the EU, there may be political or practical reasons that speak in favour of contracting parties established in a specific member state, not only at the conclusion of the contract, but also throughout the duration of the contract."

The memo also urges agencies to prepare for a disorderly Brexit by establishing how to sever the UK’s access to EU information, such as crime-fighting and asylum databases.

“In the absence of certainty about arrangements (if any) for a future relationship, commission services and decentralised agencies should start considering the practical aspects of disconnecting access from non-public databases hosted by EU bodies."

The FT reports that the commission note was circulated to senior staff and signed by Alexander Italianer, the commission’s secretary-general; Martin Selmayr, the president’s chief of staff; and Michel Barnier, the EU’s Brexit negotiator.

"It offers one of the first insights on how the bloc is adjusting to Britain’s departure in its day-to-day work. "

While EU officials have not gone so far as to fereeze EU spending in Britain through various structural and regional funds, Brussels has for example stipulated that any contracts in the latest phase of work on the €10bn Galileo satellite navigation system can be cancelled without penalty if the supplier is no longer based in an EU member state.

The memo's final section calls on EU staff to encourage the private sector to prepare immediately for the “legal repercussions” of Britain leaving the bloc and losing the rights of member states. Examples that private parties may want to consider include “requirements, according to EU law, for marketing authorisation holders or registrants to be established in the EU or to have an office in the EU”.

Of course, now that the wheels of Brexit are in motion, this is just the beginning, and over the next two years the amount of dirty laundry that will emerge will be staggering and make for hours of fantastic copy. What we find most amusing however, is that the commentariat at the FT, the original Bremainer bastion, is lashing out at Brussels in response, so if Europe wanted to burn every last bridge, it has certainly succeeded while assuring that the upcoming episodes of what is now set to be the messiest divorce in history will be dramatic, chaotic and delightfully entertaining.

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booboo's picture

Hotel Euro, you can check out anytime you like but you just can't leave

Thoresen's picture

UK should just walk away rather than wait for an EU push.

knukles's picture

Just wait until The City decides that the EU's banks are a nusiance.

Four chan's picture

eu=globalists=goy enslaving jews

TBT or not TBT's picture

The U.K. can just rejoin the anglosphere and western civ and the spirit of Locke and Churchill and capitalism. And send home their muslims, duh. The future could be grand.

Déjà view's picture

Sirens Washington/Tel Aviv...

English Bremains...as N. Éire/Scotland plot their U.K. leave course...

U.K...rainians...

SILVERGEDDON's picture

Knucles is right. Let the London Corporation freeze out the Euro banks. 

Giant mainland toilet flushing bank disaster in minutes, starting with Douche Bank.

Charge tourists to look throuugh them fancy telescopes at the Muslim invasion and looting of Europe from the safety of the white cliffs of Dover.

Beef up the navy again, with orders to shoot and sink unauthorized boats on sight.  

johngaltfla's picture

On the win side, the UK doesn't have to keep allowing its nation to be turned into Iraq Lite, unlike France, etc.

waspwench's picture

Agreed.   It is a total waste of time to attempt to attempt any kind of mutually beneficial split with the EU.   Their only intent is to drag things out and make life difficult.

JUST WALK AWAY AND GET ON WITH OUR LIVES.

Turin Turambar's picture

At least it's less violent than Lincoln's mandatory union.  600k+ dead over that one.  :-(

NidStyles's picture

I think they are more than aware that they will not win that sort of argument again.

 

 

CheapBastard's picture

Speaking of the Civil War, have you seen Watter's World on that one? He asks passersby, "Who won the Civil War" and/or "Who did we fight?"

The answers will stun you!

Only one person out of the dozen or so interviewed got the right answer!

cheech_wizard's picture

I just jumped over and read a piece on that...

Standard Disclaimer: Oh my fucking God. The stupid deserve to be nuked.

MiTasol's picture

Well, if you think the history quiz was bad, just be very thankful that he didn't start on geography.

GreatUncle's picture

/SARC not left yet? Did you really think they would let the UK leave?

What we are witnessing is the true and vile nature of the appointed EU commission and the elite crafted structure now starts to be vindictive to the core. The EU will be a dictatorship and a police state in the end to enforce its ideology of all those population subjucated to it just you wait and see.

runnymede's picture

+100 ^^^^^^

Very few understand the true nature of the State. Any State. Anti-social at it's core.

Re-read Hayek. And Albert J. Nock

It no longer matters if one believes; only that he complies.

EU is desperate to send a violent message to the other members of the collective. They WILL make this as painful as possible for our Brit friends. 

This is do our die for globalists. Much greater historical moment than most realize. 

 

Thoresen's picture

UK should close the door on EU contractors bidding for U.K. work. No obligation to advertise contracts in the EU Journal???

GreatUncle's picture

And remove all existing EU companies operating in the UK ... like DHL or others ...

A protected practice of trade must be enforced both sides.

Watch the BREMAIN UK politicians still allow EU companies to operate with no penalty.

VIS MAIOR's picture

and amazom from eu and you will pisss to your pants ..)) 

back to basics's picture

The EU can suck Teresa May's dick

c2nnib2l's picture

THeresa was EU lover for many years... She's not the best person for this divorce proceedings. 

UK is already cancelling some of their own projects. Hyper speed rail HS2 was not included in the budget by Hammond which is already a huge blown to property market which was constructing properties and developments around London and in South East epsecially because HS2 was 100% guaranteed. Now the financial support was cancelled by the same people ! 

EU might be a migrants camp but they got bigger leverage than UK and Uk is not going to trade apples tomatoes and meat (import) from India or Canada becuase Holand and Spain is literally 1 hour away and sending this by ships will beto expensive and time consuming ! never going to happen. UK have no factories ! we can only import things we hardly to any exporting. 

Regulations will kill UK within 2 years also cutting a deal just one trade deal can take anything between months to years and there is thousands of deals to be made by UK 

The only chance... and a very last one is FREXIT and EU collapse that could safe UK ass... 

Prolefeed's picture

"UK have no factories ! we can only import things we hardly to any exporting."

 UK manuacturing £357 billion, exports 659 billion. World's 5th largest economy. You talk through your butt my friend.

Don't petend you're a Brit 'cos it's obvious you are not.

With friends like the EU who needs enemies.

 

Ofelas's picture

UK

 

Manufacturing to GDP is 10%, the lowest level of all G7 countries. Many of the leading manufacturers are foreign owned and run. They have no emotions about Brexit

Size of the economy, with a sliding ciurrency the ranking is outdated in addition GDP is bolstered by debt. WIth the second highest debt worl wide bar Japan, I would not have so much faith in this number (see peakprospertiy 2015 stats)

Services, in the case of the UK the London based Financial Services are a world leader but the US companies are the leaders and they will go where the moeny is, that is the EU . With a hard Brexit passporting will be revoked and the demis of the FI industry is certain. Access to the EU market is paramount for the international instituions in the City, nobody cares about local third rate banks (RBS, Lloyds ...you name them) 

 

BandGap's picture

Italy or France leaving was always the key (meh on Spain and Portugal).

There was a reason the Limeys kept their own currency. This job has to come from the inside.

WallHoo's picture

Filthy eurocrats...

jm's picture

This is how bureaucrats and politicians negotiate.

Squid Viscous's picture

"Now, you's can't leave"

said in my best Bronx, Euro faggot accent

aliens is here's picture

We don't need to nuke NK we need to nuke the kraut who*e in Berlin and her friends in Brussels.

NidStyles's picture

You mean the Polish Jew pretending to be German?

chrsn's picture

Nothing infuriates elites more than someone who dares eschew the cool kids' club.

jamesmmu's picture
Britain Will Hold a General Election on June 8th: Is This the EU’s Weapon to Defeat Brexit?

http://investmentwatchblog.com/britain-will-hold-a-general-election-on-j...

Is-Be's picture

Brussels beware of unintended consequences.

If France goes, who will be freezing who then? 

Question. Is Brussels freezing Britain out of its NATO obligations? I thought not.

GreatUncle's picture

UK needs to pull the NATO contribution at 2.2% of GDP with immediate effect.

Ditto all the foreign aid budget that is protected ... Mind you the UK government continuing to support massive foreign aid is going to drive a bigger wedge between the population and parliament in the end ... SO CONTINUE PLEASE!

bloostar's picture

Shows what they really think of us. We've been nothing but a cash cow for years.. F the EU and buckle up. Yeehah!

Kaeako's picture

I don't see the issue. The process has begun and will be finalized within two years. Until negotiations take place and clarity is established Britain is in the same place as such countries as the United States, Japan and so on. A third country. Exactly like the ZeroHedge crowd and the brave Brexiteers hoped for.

CheapBastard's picture

Brussels hates a free peeples.

BillyBass's picture

Expect this kind of pressure to ramp up leading to May's election.  It will be interesting to see what the EU has up its sleeve.

CHoward's picture

"OK boys, start treating the UK like a red headed step child."

hannah's picture

i would bet anyone a million dollars that all the new eu contracts will cost more because now they are 'forced' to hire only eu....so is it a big win for the eu...LOL. government just cant win. idiots all....

Lazarus Syndrome's picture

I voted Leave.

The UK's participation in the EU dog and pony show has gone on for far too long having morphed from the free trade agreement that the public voted for into the political and social enterprise it has become thanks to edits from faceless unaccountable politicians.  Its amazing being a Welshman living amongst a high density of Labour/Socialist loving voters who if you had a literal donkey wearing a Labour rossette the donkey would win whatever election you put it in guarenteed.

But even after being bathed in EU cash for decades (our own taxes given back with some skimmed off the top) even the socialists in my community voted to leave.  

It comes to something when even the wealfare loving, help the world crowd want out and a Magic Negro is required to fly over The Pond to lay down the law and tell people whats in their best intersts and even that doesnt work.

Its going to be a hell of a ride.

GreatUncle's picture

For the last 20 years everywhere but London has seen their quality of life fall and not one politician did anything.

If we had voted to stay you would have had this ...

The idle 650 fucking cunts in parliament would have had the perfect excuse forever "the EU told us to do it" and because YOU SAID FUCKING YES WE NOW DO AS WE ARE TOLD which summed up is we do absolutely fuck all from now on but of course you would still be paying us to do the even fucking less than we are now.

Thank fuck BREXIT happened because that was on the cards ...

hmmmstrange's picture

All this does is increase the costs of EU contracts and hasten the demise of the EU.

Felix da Kat's picture

That is pure blackmail. It is akin to saying, " The ship is sinking, but as for the rest of you, do not try to get off or, as Captain, I'll break your arms so you cannot swim". Stripping European countries of their right to control their own borders will be remembered as THEE pivotal provision that led to Islamification of Europe through Sharia governance and ultimately, to the elimination of caucasians from their own lands. The United States will share the same fate unless the cultural invaders (who will never assimilate) are stopped from entry.

Sudden Debt's picture

With the billions England pays to the EU, they can easely compensate it all!

TacticalTrading's picture

Maybe this uproar is a politically timed to crush the Le Pen FREXIT supporters, or at least scare the crap out of them

 

are we there yet's picture

As countries leave the EU over time, the EU bonds debt obligations gets more and more iffy. Forever bonds that will never be paid back may become popular.

RedDwarf's picture

It will hurt the UK in the short term, but in the long term even this will help the UK and harm the EU.  The EU, all butthurt, is actling like a hysterical ex-girlfriend.

desirdavenir's picture

I don't understand the problem... There is a high risk of hard brexit because of the hard line taken by UK's government. It is just the least precaution to make contingency plans. Basically this is just the facts behind the words "brexit is brexit". Brexit from EU is also euxit from U.K., how is that surprising or hard to understand ?

DeathMerchant's picture

Yes, give the contracts to the countries that are being overrun by illegal immigrants and refugees