1/8/2019, 3:52 PM (Source: TeleTrader)
more TeleTrader news

BT facing £150M loss after Brexit

BT Group Plc could lose a raft of valuable contracts signed with the European Union's institutions in the aftermath of Brexit, according to a report by the Guardian on Tuesday.

The contracts, which are estimated to be worth more than £150 million, were concluded between BT and various EU institutions over the course of the past decade. They include a £49 million contract with the European Parliament (EP) and two new £24 million contracts with the European Commission for the provision of public and private cloud services to 52 major European institutions, agencies and bodies such as the EP, the European Council and the European Defence Agency.

The possibility of the EU annulling the contracts was recently uncovered by the Guardian in leaked minutes of a meeting between secretary general Klaus Welle and an MEP working group on Brexit preparations. It was also stated that under EU procurement rules, its bodies would be unable to sign off on any future contracts with British firms after Brexit. Senior MEPs finished by concluding that "whereas ongoing contracts with British companies would be fulfilled as a general rule … certain particularly sensitive contracts could be terminated prematurely for security reasons."

Breaking the News / DZ