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VW explores UK banking licence ahead of #Brexit

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Volkswagen (VOWG_p.DE) is exploring applying for a full UK banking licence so that it can continue to offer car loans after Britain leaves the European Union, the German automaker said on Thursday (2 November). 

The company confirmed comments to the Financial Times by David Maloney, chief executive of its UK financial services arm, that discussions were underway with the Prudential Regulation Authority. These may lead to an application.  “It would diversify our funding sources whilst helping to alleviate post-Brexit uncertainty and ensure we continue to provide lending products”, Maloney told the FT.  Volkswagen’s loan book in the UK is worth 15 billion pounds ($19.6 billion), larger than any other carmaker’s in-house financing arm.

Prime Minister Theresa May has set a deadline for Britain to leave the European Union by March 2019. With negotiations dragging, concerns are growing of a “hard” Brexit that would leave little time for businesses to adjust.  ($1 = 0.7661 pounds)

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Britain delays implementation of post-Brexit trade controls

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Britain said on Tuesday (14 Sseptember) it was delaying the implementation of some post-Brexit import controls, the second time they have been pushed back, citing pressures on businesses from the pandemic and global supply chain strain.

Britain left the European Union's single market at the end of last year but unlike Brussels which introduced border controls immediately, it staggered the introduction of import checks on goods such as food to give businesses time to adapt.

Having already delayed the introduction of checks by six months from April 1, the government has now pushed the need for full customs declarations and controls back to Jan. 1, 2022. Safety and security declarations will be required from July 1 next year.

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"We want businesses to focus on their recovery from the pandemic rather than have to deal with new requirements at the border, which is why we've set out a pragmatic new timetable for introducing full border controls," Brexit minister David Frost said.

"Businesses will now have more time to prepare for these controls which will be phased in throughout 2022."

Industry sources in the logistics and customs sector have also said the government's infrastructure was not ready to impose full checks.

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How the EU will help mitigate the impact of Brexit

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A €5 billion EU fund will support people, companies and countries affected by the UK's withdrawal from the Union, EU affairs.

The end of the Brexit transition period, on 31 December 2020, marked the end of the free movement of people, goods, services and capital between the EU and the UK, with adverse social and economic consequences for people, businesses and public administrations on both sides.

To help Europeans adapt to the changes, in July 2020 EU leaders agreed to create the Brexit Adjustment Reserve, a €5bn fund (in 2018 prices) to be paid until 2025. EU countries will start receiving the resources by December, following Parliament’s approval. MEPs are expected to vote on the fund during the September plenary session.

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How much will go to my country?

The fund will help all EU countries, but the plan is for the countries and sectors worst affected by Brexit to receive the most support. Ireland tops the list, followed by the Netherlands, France, Germany and Belgium.

Three factors are taken into account to determine the amount for each country: the importance of trade with the UK, the value of fish caught in the UK exclusive economic zone and the size of population living in EU maritime regions closest to the UK.

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Infographic explaining the Brexit Adjustment Reserve
Infographic showing how much support individual EU countries will receive from the Brexit Adjustment Reserve  

What can be financed by the fund?

Only measures specifically set up to counter the negative consequences of the UK’s departure from the EU will be eligible for funding. These may include:

  • Investment in job creation, including short-term work programmes, re-skilling and training
  • Reintegration of EU citizens who have left the UK as a result of Brexit
  • Support for businesses (especially SMEs), self-employed people and local communities
  • Building customs facilities and ensuring the functioning of border, phytosanitary and security controls
  • Certification and licensing schemes

The fund will cover expenditure incurred between 1 January 2020 and 31 December 2023.

Fisheries and banking sectors

National governments are free to decide how much money goes to each area. However, countries that depend significantly on fisheries in the UK exclusive economic zone must commit a minimum amount of their national allocation to small-scale coastal fisheries, as well as local and regional communities dependent on fishing activities.

The financial and banking sectors, which may benefit from Brexit, are excluded.

Find out more 

Continue Reading

Brexit

How the EU will help mitigate the impact of Brexit

Published

on

A €5 billion EU fund will support people, companies and countries affected by the UK's withdrawal from the Union, EU affairs.

The end of the Brexit transition period, on 30 December 2020, marked the end of the free movement of people, goods, services and capital between the EU and the UK, with adverse social and economic consequences for people, businesses and public administrations on both sides.

To help Europeans adapt to the changes, in July 2020 EU leaders agreed to create the Brexit Adjustment Reserve, a €5 billion fund (in 2018 prices) to be paid until 2025. EU countries will start receiving the resources by December, following Parliament’s approval. MEPs are expected to vote on the fund during the September plenary session.

Advertisement

How much will go to my country?

The fund will help all EU countries, but the plan is for the countries and sectors worst affected by Brexit to receive the most support. Ireland tops the list, followed by the Netherlands, France, Germany and Belgium.

Three factors are taken into account to determine the amount for each country: the importance of trade with the UK, the value of fish caught in the UK exclusive economic zone and the size of population living in EU maritime regions closest to the UK.

Advertisement
Infographic explaining the Brexit Adjustment Reserve
Infographic showing how much support individual EU countries will receive from the Brexit Adjustment Reserve  

What can be financed by the fund?

Only measures specifically set up to counter the negative consequences of the UK’s departure from the EU will be eligible for funding. These may include:

  • Investment in job creation, including short-term work programmes, re-skilling and training
  • Reintegration of EU citizens who have left the UK as a result of Brexit
  • Support for businesses (especially SMEs), self-employed people and local communities
  • Building customs facilities and ensuring the functioning of border, phytosanitary and security controls
  • Certification and licensing schemes


The fund will cover expenditure incurred between 1 January 2020 and 31 December 2023.

Fisheries and banking sectors

National governments are free to decide how much money goes to each area. However, countries that depend significantly on fisheries in the UK exclusive economic zone must commit a minimum amount of their national allocation to small-scale coastal fisheries, as well as local and regional communities dependent on fishing activities.

The financial and banking sectors, which may benefit from Brexit, are excluded.

Find out more 

Continue Reading
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