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You can find the current article at its original source at https://www.theguardian.com/politics/2018/jan/10/uk-aid-firms-may-lose-millions-in-eu-funding-if-no-brexit-deal-agreed
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| UK aid firms may lose millions in EU funding if no Brexit deal agreed | UK aid firms may lose millions in EU funding if no Brexit deal agreed |
| (35 minutes later) | |
| UK companies and NGOs working in development and aid are being formally instructed by Brussels that they will lose hundreds of millions in EU funding after Brexit in the event of a “no deal” scenario. | |
| A leaked EU document obtained by the Guardian reveals that UK-registered applicants for grants and contracts with the European commission are to be issued with a legal “disclaimer” from this month. | A leaked EU document obtained by the Guardian reveals that UK-registered applicants for grants and contracts with the European commission are to be issued with a legal “disclaimer” from this month. |
| The EU’s executive branch warns organisations that unless a withdrawal agreement is agreed by 29 March 2019, UK registered entities who are successful in winning contracts, grants or prizes “will cease to receive funding”, in what is the latest evidence of the bloc’s preparations should there be a failure to strike a deal. | The EU’s executive branch warns organisations that unless a withdrawal agreement is agreed by 29 March 2019, UK registered entities who are successful in winning contracts, grants or prizes “will cease to receive funding”, in what is the latest evidence of the bloc’s preparations should there be a failure to strike a deal. |
| Those seeking contracts with the commission, across seven major programmes worth billions of pounds, are also being instructed if a procurement process runs beyond Brexit day that their application will be rejected outright, and will have no recourse to recoup funds spent during the process. | Those seeking contracts with the commission, across seven major programmes worth billions of pounds, are also being instructed if a procurement process runs beyond Brexit day that their application will be rejected outright, and will have no recourse to recoup funds spent during the process. |
| Between 2012 and 2016, €1.2bn (£1.06bn) was paid by the EU to UK development and aid organisations for their work on behalf of Brussels across the world. | Between 2012 and 2016, €1.2bn (£1.06bn) was paid by the EU to UK development and aid organisations for their work on behalf of Brussels across the world. |
| Contracts and grants worth €356.9m (£315.4m) were awarded to UK organisations in 2016. | Contracts and grants worth €356.9m (£315.4m) were awarded to UK organisations in 2016. |
| A recent report for Bond, the lobby group for the development sector, had already suggested that as a consequence of concerns over the future many such organisations were “actively considering, and others have already set out to, establish offices in other European countries, with Ireland as a favourite”. | A recent report for Bond, the lobby group for the development sector, had already suggested that as a consequence of concerns over the future many such organisations were “actively considering, and others have already set out to, establish offices in other European countries, with Ireland as a favourite”. |
| The Guardian’s revelation comes in the wake of the European commission’s rejection of claims that it was discriminating against the UK while it was still a member. | The Guardian’s revelation comes in the wake of the European commission’s rejection of claims that it was discriminating against the UK while it was still a member. |
| The EU was responding to a leaked letter from David Davis to Theresa May in which the Brexit secretary complained that British economic interests were being damaged by the EU’s preparations for a scenario in which an agreement on terms of withdrawal and a transition period was not found. | The EU was responding to a leaked letter from David Davis to Theresa May in which the Brexit secretary complained that British economic interests were being damaged by the EU’s preparations for a scenario in which an agreement on terms of withdrawal and a transition period was not found. |
| The Financial Times reported that Davis had reacted to the decision by EU regulators to issue a series of warning memos to a number of industries, including pharma, fisheries, aviation and transport, about the consequences of the UK becoming a ”third country” on 30 March 2019. | The Financial Times reported that Davis had reacted to the decision by EU regulators to issue a series of warning memos to a number of industries, including pharma, fisheries, aviation and transport, about the consequences of the UK becoming a ”third country” on 30 March 2019. |
| Davis said the warnings would encourage UK-based entities to move elsewhere in Europe. The commission, in response, said it was “surprised that the UK is surprised that we are preparing for a scenario announced by the UK government itself”. | Davis said the warnings would encourage UK-based entities to move elsewhere in Europe. The commission, in response, said it was “surprised that the UK is surprised that we are preparing for a scenario announced by the UK government itself”. |
| The prime minister has repeatedly claimed that “no deal is better than a bad deal”. | The prime minister has repeatedly claimed that “no deal is better than a bad deal”. |
| The UK’s development sector is the second largest recipient of EU funding through grants and commercial contracts and its size gave it a powerful voice in shaping the direction of the bloc’s development policies. The most-funded sectors in 2016 were democracy and human rights, migration and food security. | The UK’s development sector is the second largest recipient of EU funding through grants and commercial contracts and its size gave it a powerful voice in shaping the direction of the bloc’s development policies. The most-funded sectors in 2016 were democracy and human rights, migration and food security. |
| The EU document, drafted on 20 December, explains, however, that while “the management of EU funds will depend both on the outcome of the ongoing negotiations” and the current rules on non-EU states participating in programmes, the bloc needed to take legal steps to ensure organisations in the UK understand the risks facing them. | The EU document, drafted on 20 December, explains, however, that while “the management of EU funds will depend both on the outcome of the ongoing negotiations” and the current rules on non-EU states participating in programmes, the bloc needed to take legal steps to ensure organisations in the UK understand the risks facing them. |
| The document says: “The commission must inform applicants, originating from or established in the UK, wishing to take part in EU grants and prizes award procedures that if there is no agreement concluded between the UK and the European Union ensuring that UK applicants continue to be eligible, these applicants will cease to receive funding.” | The document says: “The commission must inform applicants, originating from or established in the UK, wishing to take part in EU grants and prizes award procedures that if there is no agreement concluded between the UK and the European Union ensuring that UK applicants continue to be eligible, these applicants will cease to receive funding.” |
| EU contracts and proposals for tender have been modified to include a disclaimer informing companies and NGOs that “if the United Kingdom withdraws from the EU during the grant period without concluding an agreement with the EU ensuring in particular that British applicants continue to be eligible, you will cease to receive EU funding (while continuing, where possible, to participate) or be required to leave the project”. | EU contracts and proposals for tender have been modified to include a disclaimer informing companies and NGOs that “if the United Kingdom withdraws from the EU during the grant period without concluding an agreement with the EU ensuring in particular that British applicants continue to be eligible, you will cease to receive EU funding (while continuing, where possible, to participate) or be required to leave the project”. |
| Those already contracted to carry out EU work will not have their contracts terminated, although “modifications” may need to be made, the document adds. | Those already contracted to carry out EU work will not have their contracts terminated, although “modifications” may need to be made, the document adds. |