EU says Britain needs new plan as Brexit clock runs out

United Kingdom's Brexit advisor David Frost arrives at EU headquarters for a technical meeting on Brexit, in Brussels. (AP)
Updated 07 October 2019

EU says Britain needs new plan as Brexit clock runs out

  • Prime Minister Boris Johnson has insisted he will not ask to postpone Britain’s planned October 31 departure from UN
  • Brussels has said these plans are not a basis for an agreement

BRUSSELS: European officials warned Monday that Britain’s latest Brexit proposal won’t serve as a basis for a breakthrough before next week’s Brussels summit.
With no draft deal on the table before the October 17 meeting, Britain and Europe will face either a chaotic break-up or yet another Brexit delay.
Prime Minister Boris Johnson has insisted he will not ask to postpone Britain’s planned October 31 departure from the European Union.
However, he may be forced to do so by a British law passed to prevent a potentially economically calamitous no-deal divorce, with European negotiators warning time is running out.
Johnson’s envoy, senior diplomat David Frost, was in Brussels on Monday for more “technical talks,” and Brexit minister Stephen Barclay traveled to the Hague to meet Dutch officials.
But both heard that the latest British plans to impose alternative customs arrangements on Northern Ireland, to be reviewed every four years by the provincial assembly, is unlikely to convince.
“I think we all agree we need a workable solution now and not something based on untried and revokable arrangements that would be left to negotiation during the transition period,” EU spokeswoman Mina Andreeva said.
“As we have also recalled, the UK proposals presented last week do not meet at present the objectives of the protocol on Ireland and Northern Ireland,” she said, referring to negotiating terms agreed in 2017.
“This is also the shared view of European Parliament, but also all member states,” she added.
Meanwhile, after a “frank and honest” discussion with Barclay, Dutch foreign minister Stef Blok said “more realism and clarity” would be needed if this week’s talks are to go much further.
Additionally, in an interview with Le Monde, chief EU negotiator Michel Barnier warned that if London “does not come back with new proposals on the two serious problems we have indicated to them, I cannot see how we can move forward.”
Despite the divisions, Frost is still meeting with EU officials for technical talks, but doubts remain that a workable Brexit deal text will be available by Friday.
If it is not, European officials warn, there will be no time to get member states to sign off on it before October 17 and 18, the last scheduled European summit before Brexit day.
Britain insists its offer represents significant concessions and now the EU must show similar flexibility, but Brussels is adamant it will not agree to any plan that undermines its single market or leaves Ireland exposed.
In London, a Number 10 spokesman said: “We are ready to talk with the EU at a pace to secure a deal so that we can move on and build a new partnership between the UK and the EU.
“But if this is to be possible the EU must match the compromises that the UK has made,” he warned.
On Sunday, Barclay suggested London could be willing to soften its position on Northern Ireland, describing last week’s suggestion as “a broad landing zone” rather than a final take-it-or-leave-it offer.
But, during telephone talks with Johnson on Sunday, French President Emmanuel Macron made it clear that the EU would decide by the end of this week whether a deal is possible.
The British proposals submitted to Brussels last week center on how to manage the post-Brexit border between Northern Ireland and Ireland.
Johnson wants Northern Ireland’s devolved assembly — which has been suspended for almost three years — to vote every four years on whether to maintain EU rather than British regulations there.
He has also proposed the province leaves the EU’s customs union along with the rest of the UK, with checks on trade to rely on untried technology and to be carried out away from the sensitive border.
Brussels has said these plans are not a basis for an agreement.
Separately, British anti-Brexit campaigners failed to secure a court ruling forcing Johnson to seek an extension in the event of a no deal — but only because the Edinburgh Court of Session decided that the government had already made “unequivocal assurances” it would abide by the law.


Why the UN is struggling to function

Antonio Guterres, UN secretary-general, called the budget shortfall “the worst cash crisis facing the UN in nearly a decade,” jeopardizing, among other things, peacekeeping efforts and the management of the UN’s New York headquarters. (Ray Hanania)
Updated 16 October 2019

Why the UN is struggling to function

  • World body facing 'the worst cash crisis' in nearly a decade due to mounting arrears
  • Crisis is marked by lack of cash to pay staff and vendors or to fund critical programs

NEW YORK CITY: The UN is facing its worst liquidity shortfall in 74 years of operation with a deficit of $1.385 billion, which is making it difficult for the world body to pay staff and vendors or fund missions.
The crisis has forced Antonio Guterres, the UN secretary-general, to begin cutbacks in all operations.
Warning on Oct. 8 that the problems are at a “tipping point,” he called it “the worst cash crisis facing the UN in nearly a decade,” jeopardizing peacekeeping efforts in Yemen, Myanmar and the management of the UN’s New York headquarters, offices in Geneva, Vienna and Nairobi, and investigative commissions in Bangkok, Addis Ababa, Santiago and Beirut.
A UN budget review presented this week showed that the crisis is being driven by the lack of cash to pay staff and vendors or to fund critical programs, and outlined spending cuts that will begin immediately pending a resolution of the situation.
“The cash deficits occur earlier in the year, linger longer and run deeper,” said Catherine Pollard, UN under-secretary-general for management strategy, policy and compliance.
“For the second successive year, we have exhausted all regular budget liquidity reserves, despite several measures we had taken to reduce expenditures to align them with available liquidity.”
Chandramouli Ramanathan, UN's controller, detailed the debt in a presentation with Pollard on Oct. 11 that identified $1.385 billion in debts, more than half of the UN’s 2019 annual budget of $2.85 billion.
Ramanathan said that only $1.99 billion had been collected this year, including past year arrears.
“If the trend continues … you will pretty much see that at some point we are running out of liquidity so often — everything depends on the liquidity if the liquidity runs down, we have to prioritize the payment,” he said.
“It will come to the point where you will not have enough staff or not have enough to pay the vendors.”
Ramanathan said that 75 percent of the UN’s budget is for employee and building costs. The remainder includes air charters, fuel, rations, IT support and political missions, which he said are all in jeopardy.
This does not include the costs of peacekeeping missions, nearly $8 billion for 2019, but which are nearly $3.7 billion in arrears.
A slew of operating spending cuts at the UN began on Oct. 14, ranging from no new hirings or filling of vacant positions to switching off heating and airconditioning.
Ramanathan said that these were emergency steps but warned failure to address the “liquidity crisis” would result in other more serious cutbacks including funding of operations, missions and more.

UN OPERATING SPENDING CUTS

• No new hirings or filling of vacant positions

• Reducing operating hours of UN facilities including the New York City headquarters

• Suspending release of new documents, studies and translation of documents

• Curtailing travel of UN officials, meetings or publicly scheduled receptions

• Cutting back operations at the UN headquarters and its worldwide centers, including turning off the use of electricity for certain building operations such as escalators, and shutting down the UN’s fountains

• Heating and air conditioning to be turned off at 6 p.m. each day and not turned on until 8 a.m. at UN buildings

“We are trying to cut back on non-salaried costs, operating hours to meet obligations and to vendors,” he said.
Ramanathan said that the UN was prohibited by its charter from borrowing money. He acknowledged that traditionally member countries were late in paying, usually until the last half of the year or last quarter, but the late payments had become “later and later” each year.
“The US is the largest contributor and they have a large outstanding amount … the US has a large amount outstanding,” Ramanathan said, noting that the UN does single out and list specific debts or debtors.
“We are in active engagement with all the states that owe large amounts.”

Ramanathan identified seven member nations that had failed to pay their memberships fully and accounted for 97 percent of the debt owed: the US ($1.06 billion), Brazil ($143 million), Argentina ($51.5 million), Mexico ($36 million), Iran ($26.9 million), Israel ($17.7 million) and Venezuela ($17.2 million).
He said that a total of 65 other countries were in arrears for their annual dues, based on country size and per capita income, but that represented less than 3 percent of the operating budget shortfall. Only 128 members were fully paid up for this year.
According to Ramanathan, the US owes its annual membership dues of $674 million for 2019, and $381 million for previous years.
UN officials declined to comment on reports that Guterres is seeking to address the unpaid US monies in a meeting with US President Donald Trump, who has repeatedly criticized the UN and the US financial obligations.
But an independent report by UN Dispatch, which is funded by the UN Foundation, reported on Dec. 6, 2016, that the UN’s headquarters generated $3.69 billion in benefits to New York City’s economy through jobs, commerce, hotels and retail spending by delegates and their staff.
One example of the costs includes accommodating the more than 1,500 journalists, delegates and support staff at the opening of the UN’s 74th General Assembly in New York City on Sept. 23.

The cash deficits occur earlier in the year, linger longer and run deeper.

Catherine Pollard, UN under-secretary-general for management strategy, policy and compliance

The UN erected a huge outdoor media tent in its grounds to accommodate journalists, providing access to the internet, electrical outlets, video and audio feeds, tables and work stations.
But these journalists, staff and delegates also brought with them revenue for the host city — filling hotels and restaurants, and generating profits for retailers, cabs and other businesses.
Despite the financial benefits New York City reaps from the UN headquarters presence, and the power the US wields at the UN, Trump brushed aside reports of the budget crisis or his nation’s failure to pay its share of the UN costs during his address on Sept. 24 to the UN General Assembly.
And a week later, Trump tweeted in response to UN officials’ budget concerns: “So make all Member Countries pay, not just the United States!”
The UN could suspend the voting of any nation that fails to pay its dues under Article 19 of the UN Charter, which states: “A Member of the United Nations which is in arrears in the payment of its financial contributions to the Organization shall have no vote in the General Assembly if the amount of its arrears equals or exceeds the amount of the contributions due from it for the preceding two full years. The General Assembly may, nevertheless, permit such a Member to vote if it is satisfied that the failure to pay is due to conditions beyond the control of the Member.” (Article 19 of the Charter of the United Nations)
A UN staff member said that it was unlikely that the UN would implement the rule against the US and that they fully expected the US “to pay at least part of what it owes” before the end of the year.
The UN was created in 1945 with the goal of ending human-rights abuses.
The power of the UN rests with the 15-member Security Council, which the US is a member of and controls through its veto to block any policies or resolutions it opposes.
The UN General Assembly includes 193 nations, serving as a platform for advocacy and action.