According to a newspaper report, the Federal Government is in favor of Britain leaving the European Union (EU) without a follow-up treaty. There is a "high probability" of a disorderly Brexit on 31 October, it says in an internal paper of the Federal Ministry of Finance, which is the "Handelsblatt".

As new Prime Minister Boris Johnson insists on an exit-free, non-backstop agreement, member states would have to take the no-deal-brexit scenario seriously. It is currently "unpredictable that Prime Minister Johnson will change his tough bargaining position".

The paper from the European Department serves to inform Federal Finance Minister Olaf Scholz (SPD) about the Brexit developments under Johnson. The Treasury Department expects Johnson to use the G7 summit in Biarritz at the end of August for a "big moment" to announce the breakthrough or failure of the negotiations.

"From the EU's perspective important to stick to the previous line"

"Against this background, it is important from the EU perspective to stick to the previous line," says the paper. The remaining states of the EU refuse to renegotiate the exit agreement. Even if you remove the backstop from the exit agreement, as Johnson wished, the British government was not sure about the approval of the parliament, write the experts of the Federal Ministry of Finance.

The preparations for the disorderly Brexit on German and EU side are "largely completed", it says in the paper. The EU Commission is not planning any new emergency measures, and the preparations to date would require no change. For individual transitional arrangements, such as for the clearing houses in the financial sector, one would have to adjust the deadlines at most because of Brexit's postponement.

The federal government has passed more than fifty laws and measures in the event of a disorderly Brexit. The Ministry lists in the document the transitional arrangements in the field of tax and finance.

There is an agreement between the German financial regulator Bafin and the British FCA on cross-border financial services. In the customs administration is to be counted on a "punctually increased handling and control expenses". This should be compensated by "flexible personnel deployment" and "IT-based optimization". But there are also 900 new jobs created in the authority.