Answer given by President Juncker on behalf of the European Commission

12.6.2019

The Commission is aware that, in view of the withdrawal of the United Kingdom, some companies consider re-locating certain functions from the United Kingdom to the EU-27. This re-location is based on the principle of the freedom of establishment within the Single Market, and is required to comply with EU rules on establishment in certain sectors, such as audiovisual services and financial services.

The Commission would also like to underline that, independently of the withdrawal of the United Kingdom, Member States (and regions and cities within Member States) compete for attracting businesses. The EU Treaties provide for state aid rules and give the Union the competence to harmonise relevant aspects (such as protection of the environment, and the occupational safety of workers), in order to ensure a level-playing field and avoid a ‘race to the bottom’. Against this background, the Commission does not share the view of the Honourable Member that this could damage the relationship between Member States.