EU to set up €5b Brexit emergency package

European Council President Charles Michel on Friday proposed setting up a 5-billion-euro emergency fund for any unforeseen consequences of Brexit on European member states, reported Xinhua.

As he unveiled his latest proposal for a long-term European Union (EU) budget that will be debated over by EU leaders next week, Michel said he saw the need for such a fund because Brexit was going to be a challenge that all EU states have to face.

With or without an agreement between Britain and the 27-member EU on future ties will have consequences on Europe. The EU and Britain are currently locked in discussions to agree on the basis of trade relations following the end of the year when the Brexit transition phase comes to an end.

"We know that probably by the end of the summer or in September, October, we will have a clearer vision about where we are in these negotiations process which is not easy," Michel said.

The announcement came a day after the European Commission adopted a Communication to help national authorities, businesses and citizens prepare for the inevitable changes that will arise at the end of the transition period.

Changes will occur to cross-border exchanges between the EU and Britain as of Jan. 1 of 2021, irrespective of whether an agreement on a future partnership has been concluded or not, it said.

The European Commission pledged to "work closely with national authorities, businesses and other stakeholders over the coming months to help them prepare for the far-reaching changes that will occur at the end of the year, irrespective of whether an agreement is found."