ﻣﻮﻗﻊ ﺻﺪﻱ اﻟﺒﻠﺪ

Supervisor
Elham AbolFateh

World

Companies prepare for disorderly Brexit as talks stall

Thursday 07/December/2017 - 09:29 PM
Sada El Balad
edited by Hassanein Tayea
Big companies are stepping up their plans in case Britain crashes out of the European Union without a deal as Prime Minister Theresa May struggles to get talks back on track after a major setback.
Britain is aiming to agree with the EU on Dec. 14 to move the Brexit talks on to the second phase. This would focus on trade and a two-year transition deal to smooth the departure after March 2019. But the timetable has been thrown into doubt after discussions broke down in Brussels on Monday.

Senior executives in the financial services sector، which accounts for about 12 percent of the economy، told Reuters May's efforts to secure a transition deal had come too late and they had no choice but to start restructuring.

Big supermarkets such as Tesco and Sainsbury's have been working with suppliers to identify potential delays، shortages or price rises. They have lined up alternative providers، according to suppliers and sources in the industry.

The uncertainty is particularly painful for the manufacturing sector as low margins make it risky for them to restructure unless it is essential. They have been holding off on investment but are preparing for new certification that would allow them to sell in Europe if there is no deal.

"The delay is so great and the uncertainty is so great that companies have no choice but to start triggering their plans،" the head of one of Britain's largest companies said.

Paul Drechsler، the president of the blue-chip business lobby group the CBI، said businesses were now having to plan for the worst while hoping for the best.

"No company wants to move jobs or shift production – but business will if it has to،" he said. "There's no time to waste. In the immediate term، business needs to know the details of any transition deal – Rome is burning on that issue."

Britain and the EU are working to get talks back on track this week but the chairman of one large international bank said its executives had decided to plan for the worst at a conference call on Tuesday.

"The question is no longer whether we are moving (operations to the EU)، it is a question of how big those moves are?،" he said.

Like other executives، he had been asked by his board and the government not to divulge their thinking.

Comments

ads

Poll

What do you think about our new design?

What do you think about our new design?
ads