Explanatory Memorandum to COM(2018)892 - Continuation of the territorial cooperation programmes PEACE IV (Ireland-United Kingdom) and UK-Ireland (Ireland-Northern Ireland-Scotland) in the context of Brexit

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The United Kingdom submitted on 29 March 2017 the notification of its intention to withdraw from the Union pursuant to Article 50 of the Treaty on European Union. This means that, if the Withdrawal Agreement 1 is not ratified, the Unions’ primary and secondary law will cease to apply to the United Kingdom from 30 March 2019 (‘the withdrawal date’). The United Kingdom will then become a third country.

The Commission Communication on ‘Preparing for the withdrawal of the United Kingdom from the European Union on 30 March 2019: a Contingency Action Plan’ 2 states that ‘The Commission is also committed to ensuring the continuation of the current PEACE and INTERREG programmes between the border counties of Ireland and Northern Ireland, to which the United Kingdom is a partner’.

The European Council (Article 50) reiterated its call, on 13 December 2018, for work on preparedness at all levels for the consequences of the United Kingdom's withdrawal to be intensified, taking into account all possible outcomes. This act is part of a package of measures which the Commission is adopting in response to this call.

This proposal aims to ensure the continuation of two bilateral cooperation programmes involving Ireland namely the PEACE IV (Ireland-United Kingdom) programme and the United Kingdom-Ireland (Ireland-Northern Ireland-Scotland) programme.

Consistency with existing policy provisions in the policy area

This proposal aims at the continuation of existing programmes.

Consistency with other Union policies

This proposal is fully consistent with the Council mandate for the negotiations with the United Kingdom on its withdrawal from the Union 3

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

Article 178 TFEU•Subsidiarity (for non-exclusive competence)

As the proposed act aims at ensuring the continuation of two cooperation programmes which are governed by Regulation (EU) No 1299/2013, the compliance with the subsidiarity principle of those programmes has already been examined at the time of the adoption of the latter.

Proportionality

The proposal is considered proportionate as it provides for the necessary legal change and at the same time does not go beyond what is necessary to achieve the orderly continutation of the two North-South cooperation programmes that involve the territory of Northern Ireland.

Choice of the instrument

Given that the act builds on Regulation (EU) No 1299/2013, proposing a regulation is the only adequate form.

Due to the fact that this Regulation, which shall enter into force on the day following that of its publication in the Official Journal of the European Union, will only apply if a withdrawal agreement concluded with the United Kingdom in accordance with Article 50 i of the Treaty on European Union has not entered into force by the date the Treaties cease to apply to and in the United Kingdom, the proposed ad hoc act is more appropriate than a Regulation in the form of an amending act.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Stakeholder consultations

Due to the urgency for preparing the proposal so that it can be adopted by the colegislators on time, a stakeholder consultation could not be carried out.

Impact assessment

Due to the nature of the proposed measure, no impact assessment was carried out, in line with the Better Regulation Guidelines. There are no other materially different policy options available. The envisaged measure represents the only viable policy option to ensure the orderly continutation of two bilateral cooperation programmes involving Ireland, namely the PEACE IV (Ireland-United Kingdom) programme and United Kingdom-Ireland (Ireland-Northern Ireland-Scotland), after the United Kingdom’s withdrawal from the Union.

4. BUDGETARY IMPLICATIONS

This proposal aims to ensure, if the Withdrawal Agreement is not ratified, the continuation of two bilateral cooperation programmes involving Ireland, namely the PEACE IV (Ireland-United Kingdom) programme and the United Kingdom-Ireland (Ireland-Northern Ireland-Scotland) programme, without modifying the amounts allocated to them and their financing. The two programmes will continue to be financed from the Union's budget. The possibility to execute the necessary controls and audits in all participating regions will need to be confirmed by an agreement between the Commission and the authorities of the United Kingdom and will constitute a condition for financing.