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The European Union is initiating legal proceedings against the United Kingdom over Boris Johnson’s plan to violate the terms of his Brexit divorce agreement and violate international law.
“The commission has decided to send a formal notification letter to the UK government,” the president of the European Commission, Ursula von der Leyen, announced in Brussels. “This bill is by its very nature a breach of the good faith obligation set forth in the Withdrawal Agreement.”
The pound fell 0.7% against the dollar on the news. The letter is the first step in a legal process that could result in a lawsuit in the European Court of Justice.
While the move has few immediate consequences, it highlights that tensions are high as trade negotiations enter a critical phase, amid protests from the EU that the UK’s Internal Market Act violates the terms of the deal. Brexit.
The UK was waiting for the letter and the European Commission sends dozens of such notices to member states every month, about various cases of alleged breaches of EU law. This is followed by an exchange of letters and explanations before some of these cases reach the EU courts. Von der Leyen gave the UK one month to respond.
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Prime Minister Boris Johnson has risked a chaotic and bitter separation from the EU with his plan to introduce legislation that would nullify parts of the Brexit withdrawal agreement, which would be in conflict with international law.
Critics, including the UK’s five living former prime ministers, say the law will hurt the UK’s position in other international disputes.
The Internal Market Bill cleared its final stage in the House of Commons on Tuesday and will move to the House of Lords, where Johnson’s Conservative Party has no majority. Ministers expect the bill to come under attack there, according to people familiar with the matter.
Johnson’s defeat would deprive him of negotiating in the final stages of trade negotiations with the bloc.
The bill had been seen as an attempt by the UK to obtain better terms from the EU by threatening Northern Ireland’s status. Without a deal, the UK will exit the single market and the bloc’s customs union on December 31, burdening businesses and consumers with additional costs and disruption.
