The need for local businesses to be prepared, support for SMEs to navigate through the impacts of Brexit as well as the ongoing negotiations were the key topics discussed with David McAllister MEP (DE/EPP), Chair of the European Parliament Committee on Foreign Affairs (AFET) and Chair of the UK Coordination Group (UKCG) during the second virtual CoR-UK Contact Group.
Michael Murphy, Councillor of Tipperary County, Head of the Irish Delegation to the CoR and Chair of the ECON commission, appealed for local business to prepare for 1st January 2021 irrespective of whether there will be an agreement or not. He said "There will be changes and it is vital to be ready for those changes. In any case, irrespective of the outcome of the negotiations, at a minimum on the customs front, companies exporting to and importing from the UK will be subject to a whole raft of new procedures, timely and costly".
Cllr. Murphy asked about the status of the Brexit Adjustment Reserve proposal and appealed for an instrument designed to facilitate rapid access to funds. McAllister said that discussions are ongoing on the Brexit Adjustment Reserve proposal of EUR 5 billion, aimed at countering adverse consequences in the regions and sectors that are worst affected.
Regarding preparedness, McAllister echoed Mr. Murphy's emphasis on future-oriented planning. He emphasised that preparedness is essential to minimise serious disruption at the end of the transition period.
Cllr. Murphy expressed his appreciation with McAllister for his support and that of the European Parliament for the Northern Ireland peace process. However, he reiterated that this remains fragile hence the importance of including the protocol within the withdrawal agreement.
Members also held a discussion with UK devolved parliaments and assemblies on their perspective regarding the future CoR-UK cooperation. Members emphasised the need to build on the good existing working relationships.