Mr. Karl-Heinz Lambertz:

I am very pleased to be able to meet the committee and enrich the meetings conducted by the European Committee of the Regions with the devolved administrations and local governments of the United Kingdom and other stakeholders dealing with Brexit. I would, therefore, like to thank the committee for its invitation to meet representatives of the Irish Parliament, who work with local and regional elected representatives, our natural partners when it comes to dealing with European political matters ranging from subsidiarity to sustainable territorial development, including the future of Europe.

Although it does not have a formal role in the negotiations, the European Committee of the Regions has provided a platform for political dialogue which brings together the interests of representatives of local and regional authorities across the EU. It has, therefore, been following the negotiations closely, positioning itself as the voice of the regional level in the dialogue with the other EU institutions and analysing the repercussions for our regions and cities. In this context, the European Committee of the Regions has organised consultations and debates and carried out territorial impact assessments to assess the consequences of the UK's withdrawal at sub-national level. Ireland and Northern Ireland are among the most exposed to Brexit, but the regional impact will also be felt on the other side of the Channel, including in Spain, France, Germany, Belgium and the Netherlands.

We have carried out a Europe-wide study to map comprehensively the impact of Brexit across sectors and regions. Preliminary conclusions indicate that there will be no winners from this process. However, the study also showed that local and regional authorities do not have sufficient information on the impact of Brexit, given the uncertainty surrounding the outcome of the negotiations and the future relationship between the EU and the UK. This is particularly important because it considerably limits the capacity of regional and local authorities to devise strategies to mitigate and prevent the negative effects on their economies.

Some European regions are looking into how they can start building bridges with British businesses in order to help ensure a smooth transition and maintain dialogue, and so they understand the challenges on both sides. Others are setting up information desks to raise awareness among their businesses, including SMEs, about the challenges triggered by Brexit.

Unfortunately, the majority of European regions have not yet succeeded in properly assessing the potential impact of Brexit, particularly given the lack of data on the future relationship. This new risk for local development should be properly reflected in the future multi-annual financial framework, MFF, which should explore measures, in particular for SMEs, to cope with the unprecedented phenomenon which is Brexit. Future EU policies need to be more flexible in order to provide appropriate responses to the new challenges ahead.

The United Kingdom's exit from the EU is already affecting Europe's regions and cities. Just look at the MFF proposal issued by the European Commission on 2 May to understand the consequences of Brexit on the Union's budget and policies, starting with CAP and cohesion policy. One of our permanent priorities has always been to remedy asymmetries between the various European regions and support the mobilisation of the necessary resources, particularly through cohesion, cross-border co-operation or rural development. I believe I would not be wrong to say that the best way to mitigate the impact of the UK's withdrawal from the EU is to aim for an ambitious agreement, allowing for a genuine partnership between the EU and the UK.

Despite the uncertainties regarding the type of relationship that will be established between the UK and the EU, including as regards trade, one thing that is certain is in some member states it will be necessary to secure the explicit consent of national or even regional parliaments to the agreement setting out the future relationship between the EU and the UK. Therefore, transparency and constant dialogue with local and regional authorities will be imperative throughout the negotiations.

The EU has made considerable efforts to help stabilise the political and social situation in Northern Ireland, and would be most concerned about any solution that could jeopardise what has been achieved over the past few years in terms of peace, social cohesion, institutional stability and economic progress. One example is the significant investment of €1.8 billion in initiatives and measures under the PEACE programmes. These have been bearing fruit and must not be abandoned now.

In March 2017, the European Committee of the Regions adopted a resolution on the likely impact of the UK's exit from the European Union and we adopted a new resolution only a few days ago during our May plenary session. These resolutions place great emphasis on the issue of the Border between Ireland and Northern Ireland, calling for an operational solution to be devised in due time to avoid a hard border. When asked to choose between hard or soft borders, I would go for a "transparent" one.

The terms of the relationship between the EU and the UK will necessarily have to change after Brexit, but the relationship between cities, regions and people should continue. Cross-border co-operation tools such as the European Groupings for Territorial Cooperation, EGTC, or macroregional strategies are mechanisms that could allow for the development of common projects and smooth co-operation in the future.

I thank the committee once again for the opportunity to discuss this sensitive issue with it today. Allow me to introduce the members of our delegation. I am joined by Mr. Michael Murphy of the European People's Party and head of the Irish delegation on the European Committee of the Regions; Mr. François Decoster, representing the Alliance of Liberals and Democrats for Europe; Mr. Stanislaw Szwabski, representing the European Alliance; Mr. Peter Bossman, representing the Party of European Socialists; and Mr. Adam Banaszak, representing the European Conservatives and Reformists Group.