The European Commission (EU) said it started to implement its preparations for a no-deal Brexit - in case the UK crashes out of the EU without a plan.
It announced temporary measures to try to reduce the impact, but says it cannot counter all the problems it expects.
As PM Theresa May's proposed exit plan flounders in Parliament, both sides are preparing for the worst-case situation.
The UK has allocated £2.0b ($2.5b) in funding to government departments, according to BBC.
The European Commission's measures are designed to limit disruption in certain key areas, such as finance and transport, if Brexit goes ahead in March without a deal.
"These measures will not - and cannot - mitigate the overall impact of a 'no-deal' scenario," it said in a statement.
"This is an exercise in damage limitation," added commissioner Valdis Dombrovskis in a news conference, saying a contingency plan was necessary "given the continued uncertainty in the UK".
