European Union: The Spectre Of Brexit Looms Over Europe

Last Updated: 18 September 2018
Article by Calogero Boccadutri
Most Popular Article in Italy, September 2018

The British Prime Minister, Theresa May, is at the centre of the dialogue between the "soft" and "hard" Brexit factions, and the European Union, which wants answers on its future relations with Britain.

The UK's divorce from the EU is getting messier and messier every day. In recent days, the European Council met to negotiate the terms of Brexit with the British Prime Minister.

The deadline of 29 March 2019 might Indicate that the exact nature of Britain's exit from the EU ought to be clearly laid out by now – although the British have indicated that the negotiations will be finished by this October – so as to allow all the EU-member states a reasonable amount of time to approve the final document.

There are a huge number of issues to be resolved, not least the possibility of maintaining a trading relationship with the EU, as well as the particularly delicate issue of the Irish border.

In the battle for the soul of Brexit, those who would wish to keep a close relationship with Europe and those who would prefer a cleaner break must find some common ground.

The transition terms that have already been established

The guidelines for the future relationship between Britain and the EU have already been drawn up.

On one Issue, an agreement seems to have been reached. The rights of European citizens currently living in the UK will be protected, as will those of citizens from the UK in EU countries.

On 19 March, ahead of the 22 March summit, the European Commission had already agreed to allow Great Britain a period of transition from 29 March 2019 until 31 December 2020.

By then, the EU's seven-year budget will have expired. This would mean that Great Britain, although no longer a member of the EU, would continue to trade freely with the countries of the EU. It would also mean that, until 2020, the regulations for movement of people, goods and capital would remain unchanged.

Theresa May...be

The British Prime Minister, Theresa May, whom some critics have renamed "Maybe", accusing her of delaying negotiations too much, has indicated that there is no such thing as a deal that pleases everyone.

A compromise that pleases all parties is often reached with great difficulty, especially bearing in mind the number of issues on which Britain does not want to concede any ground.

For the hard-line Brexiteers, the British public voted to "take back control from Brussels" and refuse to continue to submit to EU regulations.

They are asking that their representatives no longer contribute money to the EU and stop accepting European laws. It remains to be seen how this will fare in the agreement with Brussels, since an "agreement" might suggest that something is being conceded.

May maintains, however, that "no deal is better than a bad deal".

The themes of the debate

The period of transition will not resolve other unsolved issues, it will simply serve to postpone the inevitable decision on difficult issues, such as the future role of the European Court of Justice (ECJ) in the UK, future trade arrangements and the Northern Ireland question.

Great Britain and EU law

On one point, Great Britain already seems to have made up its mind: to exclude the ECJ from any trade dispute concerning British citizens. The English judicial system would thus be independent.

On the other side of the coin, the EU would Implore Great Britain not to have Its cake and eat It, too, by making its own tailor-made regulations itself and continuing to enjoy the advantages of being a member without being subject to the attendant obligations.

Trade arrangements at risk

What trade arrangements between the UK and the EU will look like after Brexit is not yet clear. To speak of a close relationship, honest competition or dialogue is still a bit premature given that, to negotiate the free exchange of goods and services, financial passporting must be Incorporated, as Britain has declared that It desires to do, and Britain must also remain In the Digital Single Market.

"Passporting" is the right of companies, once they have registered in the European Economic Area (EEA), to carry out business in any EEC member state, bypassing the system of individual state-by-state authorizations.

Even companies whose headquarters are outside the EEA will be able to enjoy the rights conferred by the "passport" If they are authorised In a member state. This could happen to British companies after Brexit.

The same banks that operate in the City of London without EU authorization for trade would expect to meet a bureaucratic wall that would compromise their business.

The British have reiterated that they still will be leaving the Single Market and the Customs Union.

The Northern Ireland question

In reference to the delicate Northern Ireland question, Theresa May has said that "the EU will not divide us and the agreement will thereby reinforce the union between our nations and our citizens."

The EU Commission has released a document proposing that, unlike the other countries of the United Kingdom, Northern Ireland and the Republic of Ireland remain in the single market and the customs union, with the purpose of avoiding border checks and customs obstacles with the Republic of Ireland, which is part of the European Union and the Eurozone.

What has been called the "customs backstop" represents the EU's plan B and would mean that Northern Ireland would enjoy a special dispensation allowing them to remain in the European Economic Area. Brussels has made it clear that if Britain does not propose any other acceptable solutions, they will have to recourse to this one.

The position of Brussels

If approved, the transition document would bridge the gap between Europe and Great Britain until the end of 2020, maintaining Britain's privileges but postponing their Brexit commitments.

According to that document, Republic of Ireland and Northern Ireland would remain an integral part of the European Union.

Britain after Brexit will no longer be the heart of financial services for Brussels. London has already been threatened by the "flight" to other European cities.

In the meantime, those who have economic interests in Great Britain are gathering themselves to face up to all possible scenarios.

The drain of banks and companies continues on, as does the relocation of businesses to places outside of the UK.

Even Italy is in the running to host those who do not want to wait to see how things pan out before leaving the United Kingdom. If you have economic interests in London and you fear that they may be under threat because of the consequences of Brexit, do not hesitate to contact our expert lawyers for advice.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions