BRUSSELS (Reuters) - The European Commission said on Tuesday risks of financial instability in case of a no-deal Brexit have “diminished significantly” due to ongoing contingency preparations, though such a scenario could still pose risks for cleared derivatives.

Announcing its latest contingency plans for a no-deal Brexit, the European Union’s executive said it was looking at temporary bridging solutions to mitigate disruption in key areas affected.

On air traffic, the Commission said it would propose extending current rules to allow UK airlines to land in the EU and take off from its airports, but that this was conditional on Britain applying equivalent measures for carriers from the bloc.

For road transport, however, the Commission said its unilateral contingency measures “would allow for considerably less traffic than what currently takes place between the Union and the United Kingdom”.