Brexit deal: UK under legal fire from EU

Brexit divorce deal is quickly becoming a cause of global worry. This news comes after the EU decides to go ahead with legal proceedings against the UK. The latter has been refusing to ditch overriding the sections of the Deal.

European Union had given a deadline of Wednesday to the UK. The date mandated was for the UK to alter the Deal and remove sections of the Internal Market Bill.

The legal letter of formal notice could lead to a potential court hearing in the Union’s top court, the European Court of Justice.

President Ursula von der Leyen says, “UK would have until the end of November to respond to the EU’s concerns over the draft legislation.”

Brexit Bill: The UK-EU falling

As the trade talks for UK and EU continue to persist, Prime Minister Boris Johnson comments. He remarks on how both sides should focus on ‘moving on.’

Contrastingly, Von der Leyen comments on the contradictory makings of the bill. She remarks on how it was a contradiction of previous UK commitments regarding a hard border on Ireland.

Consequently, she reflects on the nature of the bill. The bill allegedly breaches the obligation of good faith of the previously made withdrawal statement on the UK’s part.

Dutch Prime Minister Mark Rutte provides a third party’s viewpoint. He plays down the importance of the letter as more of an administrative than a political move.

Internal Market Bill

The Internal Market Bill dictates the norms for the functioning of the UK’s internal market. The bill consists of trade between the Kingdoms of England, Scotland, Wales, and Northern Ireland after the Brexit transition period earlier this year.

Here’s what all the bill proposes:

  • Lack of Goods checking from Northern Ireland to Great Britain.
  • Provision of power to UK’s ministers. These powers contain modifying or ‘disapplying’ the rules relating to the movement of the goods.
  • Provision to override prior agreed obligations on support from state aid-government for businesses.

The powers in the Brexit Deal

As an ugly fight ensues on either side of the Deal, the future looks bleak at best.

Sir Keir Starmer, the Labour Leader, states that both the parties need to work together over trade differences as “A deal can be done here.”

With legal proceedings as viable weapons of threat, there only so much the Union can do.

At the moment, any legal path is uncertain at it’s best. There is a lack of any resolution to occur before the UK’s transition period, which ends on December 31.

Image courtesy of ratlos/Shutterstock

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.