Basics of the EU

The EEC (as it was called then) started out as a trading bloc - with free movement of goods and services within the Common Market - now its interests include reducing regional inequalities, preserving the environment, promoting human rights and investing in education and research.

The EU was founded by Belgium, France, Germany, Italy, Luxembourg and the Netherlands in 1957 and has grown steadily since with Britain, Ireland and Denmark joining in 1973, followed by Greece in 1981 and Portugal and Spain five years later. Eastern Germany joined after unification and Austria, Finland and Sweden became part of the EU in 1995. The biggest group came in 2004 when 10 new member countries joined.

Romania and Bulgaria joined in 2007 and Croatia was latest to sign up in 2013. So all in all the EU has 26 countries now in 2018

The UK has a problem with how it spends. It is third in the matters of spending only topped by Germany and France, in fact these three in all support about half of the total EU budget.

Here is a list of the main countries contribution to the budget.

So as you see just these countries contribute to a lot of the EU’s budget and some receive more benefits than others, like France would get more help than the UK but all countries do get money back, in some way or another

Now that you know how much the main contributors pay you should know how the EU actually spend this money. Well a lot of money goes towards support for poorer regions but a lot of money also goes to development of all sorts, including education. Here’s a list of some spending options. (This is the budget is for 2014 to 2020. The EU’s overall budget for these years is 960 billion euros)

• 125.6 billion for research and training growth.
• 278 billion for agriculture, basically, funds for farms.
• 325 billion for support for poor regions.
• 15.7 billion for security including border control.
• 59 billion for showing the EU as a global player. This includes developing aid for other countries.

62 billion for administration.

And finally, 65 billion for rural development and fisheries

The UK is in all, not a very poor area so the 325 billion that goes towards poor areas doesn’t really help the UK a lot. In fact in 2017 the UK government paid £13 billion to the EU budget, and EU spending on the UK was forecast to be £4 billion. So the UK's 'net contribution' was estimated at nearly £9 billion. Each year the UK gets a discount on its contributions to the EU—the 'rebate'—worth about £5.6 billion last year. This though, puts EU membership in a bad light the CBI (or the Confederation of British Industry) estimates that the net benefit of EU membership is worth 4-5% of GDP to the UK, or £62bn-£78bn per year! In 2014, the ONS (or Office for National Statistics) reported that the EU, which is the world's biggest economy, accounted for 44.6 per cent of all Uk exports of goods and services, and 53.2 percent of the UK's imports of goods and services.

Now though I can’t be so one sided so I will tell you some negative things about the EU. The UK doesn’t believe in all the rules the EU sets as in the past, the UK has chosen to opt out of some key EU decisions, like the single currency or euro and the Schengen Treaty, which relaxed border controls.

Prime Minister David Cameron wants Britain to stay in the EU, if certain changes are made to the rules - including lower benefits paid to migrants and greater protection for states not in the eurozone.

Critics believe Britain is being held back by the EU, gets little in return for the money it pays in and would be better taking back control of its borders.

The decision is really only for you to make for yourself, whether you think it’s a good idea to leave or stay but you still have to face the facts.

Theresa May

This is a very short biography so if you want to know more click Here

A better perspective….

In the last bit was about the basics of the EU and I also told you a little about Brexit. Today though I am going to give you a short biography on Theresa May so you will have a better perspective on the leader of pulling off this arduous task of leaving the EU before we go into depth about Brexit itself

Intro

Theresa May has had a hard time being prime minister as she has had to take the UK through a time of uncertainty. Although at the start she agreed with the last prime minister, David Camron, she is now for Brexit and has been criticized for changing her mind so fast.

Lately Theresa May has been having a hard time in parliament as she can’t seem to get any of her deals to pass and is thoroughly against a hard Brexit and No deal but is still also against delaying Brexit further than the 30th of June.

Theresa May though is a strong political figure and many who know her repeat this, including her husband Philip May who she married in 1980.

Early life and education

Theresa was born on October 1st, 1956 in Eastbourne, Sussex, England. Theresa was the only child of an Anglican minister and in her early life she lived in and grew up in rural Oxfordshire. May would have been exposed to politics at a very young age because her mother supported the conservative party. Theresa May attended both state and privately run schools until she got a place at Oxford and studied geography graduating with a second class BA degree in 1977.

Later life and career

After May graduated from Oxford she worked for the bank of England. She also worked in many other positions, including working from 1985 to 1997 as a financial consultant and senior advisor in International Affairs at the Association for Payment Clearing Services.

After marrying in 1980, her father died in a car accident in 1981 and her mother died of multiple sclerosis the following year. May always regretted that they never got to see her become an MP (member of parliament)

Political career

In 2002 May was appointed as the first female Chairman of the Conservative Party and was famously quoted as saying it must no longer be known as the "Nasty Party." She served in a number of Shadow Cabinets before becoming Home Secretary in 2010, and also became the Minister for Women and Equalities, a post she vacated in 2012.

As the longest-serving Home Secretary in six decades, she was known for her work on police reform and pursuing stricter drug and immigration policies.

And finally……….

May’s term as prime minister:

Theresa May was sworn in and consequently became Britain's second female Prime Minister on July 13, in 2016 the queens 13th prime minister.

Brexit started on May 29, 2017 when the Prime Minister, Theresa May, officially told Parliament that she had invoked Article 50 of the Lisbon Treaty, legislation triggering the legal process to set Brexit in motion.

"This is an historic moment from which there can be no turning back. Britain is leaving the European Union,” she quoted. “We are going to make our own decisions and our own laws. ... We are going to take control of the things that matter most to us. And we are going to take this opportunity to build a stronger, fairer Britain — a country that our children and grandchildren are proud to call home."

The United Kingdom’s ambassador to the European Union Tim Barrow delivered a letter to European Council President Donald Tusk, notifying the E.U. that the U.K. was leaving the union.

Shortly afterward, on June 8, an early general election resulted in the loss of her Conservative Party's Parliamentary majority. In November, the PM faced additional troubles with the resignation of two cabinet ministers — Secretary of State for International Development Priti Patel and Secretary of State for Defence Sir Michael Fallon — in the span of seven days. The shake-up was reported to have sparked concern that the Conservative Party was headed for further disarray, including a possible change in leadership.

A plot to kill May…...

In early December, a report surfaced that MI5, the British domestic intelligence agency, had foiled a terrorist plot to assassinate May. According to the report, two men were planning to use improvised explosives to blow up the gate at the prime minister's residence and to kill her in the ensuing chaos. The two suspects were arrested in late November.

I hope you enjoyed the last bit which has nothing to do with Brexit but you may have not known that she could have been assassinated if the M15 didn’t act fast. Anyway I hope you enjoyed it and feel free to ask me any questions in feedback or even over email

Whats up with Brexit now?

Ok, I know what you're probably thinking 'enough with the background what about the juicy stuff that's happening now'. What's happening now is a whole new can of worms as if article 50 took hold the UK should be gone right now (yes I am writing this 30th March 2019). So now there is a short delay which could result in an even larger wait or even a possible no deal, which I could tell you about but it would probably be more interesting to see it in a video with images.

So one thing that video didn't mention is that parliament has voted against a no deal and May's deal which means that a longer delay is now on the table but not exactly inevitable as it too has been out of favour with those involved in the mess we call Brexit but, I think that, as the EU and the UK have specifically stated that a no deal is not what they want, that a longer delay is going to happen. This possibility though, comes with a lot of other problems, a main problem being that if there is a long delay britain would have to take part in the EU elections which is without a doubt, not what anyone wants. Here's why that is.....

• Apart from it being politically awkward for a leaving member state (in this case the UK) to hold European elections, there are three reasons for why this is an issue. Firstly, any member states (countries in the EU) that have issued some of the 73 EU parliament seats cancelled or annulled by the UK – Ireland among
• them – would not be able to send their additional MEPs to Brussels and Strasbourg until the UK has left the EU.

• Another thing is, an election in the UK might at least temporarily strengthen Eurosceptic groups (basically groups that are critical to the European union, in Ireland they are traditionally small left-wing and Irish republican groups) making the EU parliament more difficult to govern or control. This in term could break the European Union in the worst case of scenario.

• And finally, UK MEPs (members of EU parliament) would have a say in decision-making that affects the EU long after Brexit. Examples include the election of the new Commission president, new legislation and possibly the next seven-year EU budget.

All this is not making an extension, even to prevent a no deal, favourable. This proposed extension is especially unpopular with those who are in the EU as these problems will affect them in ways that can not be predicted, even more so than a no deal.

Ok so now that we know the problems with both a no deal and an extension we should look at what businesses have to prepare and then next week we can look at how they can prepare.

How businesses can prepare for Brexit:

So before we get into exactly how businesses can prepare we have to look at what businesses have to prepare.

Brexit will affect your company if…

• it sells goods or supplies services to the UK, or
• it buys goods or receives services from the UK, or
• it moves goods through the UK.

Brexit can also affect farms as they typically employ 100’s of migrant workers which you can learn about more here…..

Without a transition period (as tabled in the Withdrawal agreement) or a definitive arrangement, trade relations with the UK will be governed by general WTO rules, without application of preferences. This means in particular that……..

(source: https://ec.europa.eu/taxation_customs/sites/taxation/files/leaflet-brexit-customs-guide-for-businesses_en.pdf)

• Customs formalities will apply, declarations will have to be lodged and customs authorities may require guarantees for potential or existing customs debts.
• Customs duties will apply to goods entering the EU from the United Kingdom, without preferences. April 2019 In the absence of a Withdrawal Agreement, which would put in place a transition period until the end of 2020 (with the possibility of an extension foreseen in the Withdrawal agreement), the UK will be treated as a non-EU country for customs purposes.
• Prohibitions or restrictions may also apply to some goods entering the EU from the United Kingdom, which means that import or export licences might be required.
• Import and export licences issued by the United Kingdom will no longer be valid in the EU (EU27).
• Authorisations for customs simplifications or procedures, such as customs warehousing, issued by the United Kingdom will no longer be valid in the EU (EU27).
• Authorised Economic Operator (AEO) authorisations issued by the United Kingdom will no longer be valid in the EU (EU27).
• Member States will charge VAT at importation of goods entering the EU from the United Kingdom. Exports to the United Kingdom will be exempt from VAT.
• Rules for the declaration and payment of VAT (for supplies of services such as electronic services), and for cross-border VAT refunds will change.
• Movements of goods to the United Kingdom will require an export declaration. Movement of excise goods to the UK may also require an electronic administrative document (IAD).
• Movements of excise goods from the United Kingdom to the EU (EU27) will have to be released from customs formalities before a movement under the Excise Movement and Control System (EMCS) can begin

What should your business do

All businesses concerned have to prepare, make all necessary decisions, and complete all required administrative actions, before 13 April 2019 in order to avoid disruption. Follow the checklist below and get to know which practical steps you need to take as soon as possible to be prepared.

Checklist for traders:

Before this checklist, assess whether your business trades or moves goods through the UK.

• REGISTER your business with the national customs authority, to trade with non-EU countries. You can find the contact details of the national customs authorities in this list: https://europa.eu/!Xr37YV ASSESS whether your business is ready to continue trading with or via the UK by having the necessary:

1. human capacity (staff trained in customs matters);

2. technical capacity (IT systems and others); and

3. customs authorisations, such as for special procedures (storage, processing or for goods under the “specific use” rule).

• ENQUIRE with your national customs authority about the existing customs simplifications and facilitation that are available for your business, such as:

1. simplifications for placing goods under a customs procedure;

2. comprehensive guarantees, with reduced amounts or waivers;

3. simplifications for transit procedures.

CONSIDER applying for an Authorised Economic Operator (AEO) status from your national customs authority.

• If you are registered for the VAT Mini-One-Stop-Shop in the UK, REGISTER in a EU27 Member State.

• If you have paid VAT in the UK in 2018, SUBMIT your VAT refund claims sufficiently in advance of 13 April 2019 for them to be processed before that date.

• TALK to your business partners (suppliers, intermediaries, carriers,…) as Brexit might also impact your supply chain.
• CHECK e-learning modules on Customs and Tax to see whether you or your staff need extra training.

• CONSULT for more detailed technical information the European Commission’s webpage which contains “preparedness notices” on a wide range of topics, including customs and taxes.

So there you have it. What rules will apply to the UK and what you can do to make sure your business is safe all through Brexit. Here are more information and some related links:

• Withdrawal of the United Kingdom from the EU https://ec.europa.eu/taxation_customs/uk_withdrawal_en

• Factsheet “Seven things businesses in the EU27 need to know to prepare for Brexit” https://ec.europa.eu/info/sites/info/files/factsheet-preparing-withdrawal-brexitpreparedness-web_en.pdf

• Contacts of EU27 national authorities in the field of Customs and Tax https://europa.eu/!Xr37YV

• Page with preparedness notices on all topics https://ec.europa.eu/info/brexit/brexit-preparedness/preparedness-notices_en

• E-learning modules on Customs and Tax https://ec.europa.eu/taxation_customs/eu-training/general-overview_en

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