Britain already being 'frozen out' of EU contracts by Brussels, leaked memo shows

Prime Minister Theresa May and EC president Donald Tusk have years of tough talking ahead (Dan Kitwood/Getty Images)
Prime Minister Theresa May and EC president Donald Tusk have years of tough talking ahead (Dan Kitwood/Getty Images)

British groups and some companies will find themselves frozen out of EU contracts within weeks, a leaked memo suggests.

Top European Commission officials have instructed staff to avoid “unnecessary additional complications” with Britain as the countdown to Brexit continues.

The leaked memo, seen by the Financial Times, states that where possible, the commission and its agencies should “take account” of the fact the UK may soon be a “third country” – which covers the awarding of lucrative contracts for research projects and services.

It also urges staff to make companies in the private sector aware of the possible legal repercussions of leaving the European Union and the need to “have an office in the EU”.

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The FT says the memo was sent just a week after Prime Minister Theresa May invoked Article 50 last month, setting in motion the formal process for the UK to leave the EU.

“Apart from the legal requirement for a contracting party to be established in the EU, there may be political or practical reasons that speak in favour of contracting parties established in a specific member state, not only at the conclusion of the contract, but also throughout the duration of the contract,” the note states.

The memo, signed by Alexander Italianer, secretary-general of the commission, Martin Selmayr, the president’s chief of staff and Michel Barnier, the EU’s chief Brexit negotiator, also suggests agencies should prepare for how to cut ties with their UK counterparts over the sharing of databases covering areas such as crime and asylum.

It calls on various European agencies to consider how to “disconnect” UK groups from “non-public databases”.

Theresa May, in her formal letter to Commission president Donald Tusk, was criticised by some for seemingly suggesting the issue of British intelligence services and their role in fighting terrorism could be a bargaining chip in Brexit talks.