{"id":140946,"date":"2020-01-16T01:30:26","date_gmt":"2020-01-16T01:30:26","guid":{"rendered":"https:\/\/www.bnreport.com\/uk-airline-rescue-looms-over-eu-trade-talks\/"},"modified":"2020-01-16T01:30:26","modified_gmt":"2020-01-16T01:30:26","slug":"uk-airline-rescue-looms-over-eu-trade-talks","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/uk-airline-rescue-looms-over-eu-trade-talks\/","title":{"rendered":"UK airline rescue looms over EU trade talks"},"content":{"rendered":"

Britains decision to bail out a regional airline threatens to cast an immediate shadow over U.K.-EU trade talks that are likely to begin in early March.<\/p>\n

Officials in Brussels are worried that Britain could turn into a dangerous competitor if it deviates widely from EU rules after Brexit on January 31, so are insisting that a \u201czero tariff, zero quota\u201d trade deal will have to be based on the preservation of a \u201clevel playing field\u201d in terms of EU laws and standards.<\/p>\n

The rescue of Flybe raises immediate concerns about whether Britain is transgressing EU standards on illegal subsidies. The EU is watching this question very closely because British Prime Minister Boris Johnson has made no secret of his opposition to EU state aid laws. In particular, he has stressed that he wants Britain to have greater leeway to be able to bail out its ailing steel industry with public money.<\/p>\n

U.K. press reports say that the government will defer Flybes tax payment of more than \u00a3100 million for three months, which the airlines competitors have already lambasted. The move will raise eyebrows in Brussels too.<\/p>\n

Flybe said it was delighted with the government \u201csupport\u201d but declined to say how much that would be.<\/p>\n

\n\u201cThe more divergence there is, the more distant the partnership has to be\u201d \u2014 European Commission President Ursula von der Leyen<\/em>\n<\/p><\/blockquote>\n

Other airlines certainly saw the assistance as unfair. The European Commission confirmed that British Airways filed a complaint regarding the rescue. The chief executive of British Airways owner IAG, Willie Walsh, called the rescue<\/a> a \u201cblatant misuse of public funds,\u201d and EasyJet CEO Johan Lundgren said \u201ctaxpayers should not be used to bail out individual companies especially when they are backed by well-funded businesses,\u201d referring to the consortium that owns Flybe, which includes Virgin Atlantic.<\/p>\n

European Commission President Ursula von der Leyen has already warned that deviation from EU rules will play badly in Brussels. \u201cThe more divergence there is, the more distant the partnership has to be,\u201d she said last week.<\/p>\n

A potential Commission investigation into the rescue package could significantly shape those discussions. Asked whether the Commission was notified of the rescue deal, a spokesperson said<\/a>, \u201cWe have seen the press reports.\u201d<\/p>\n

Britains best riposte to the Flybe rescue is probably that the EU is itself pretty Read More \u2013 Source<\/a>
\n[contf]
\n[contfnew]
\n <\/p>\n

politico<\/a><\/h5>\n

[contfnewc]
\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"

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