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European Union (EU) Starts Legal Action Against the UK Over Brexit

Brexit

Full Photo (Agencies)

The European Union (EU) on Thursday started legal action against the UK after it refused to ditch plans to override sections of the Brexit Withdrawal Agreement.

In a statement, European Commission President Ursula Von der Leyen said the UK had been put on formal notice over the Internal Market Bill, which would override a part of the agreement when it came to goods and allow the country to modify or re-interpret “state aid” rules on subsidies for firms in Northern Ireland, in the event of the two sides not agreeing on a future trade deal.

Von der Leyen added that the bill “by its very nature, breaches the obligation of good faith laid down in Withdrawal Agreement”.

The commission’s decision was not a surprise as it gave Britain an ultimatum last month, threatening to take it to court unless it dropped its plans to backtrack on a deal Prime Minister Boris Johnson struck last year.

On the other hand, the UK said that it would respond “in due course”.  A spokesperson for the Johnson government said the bill was a necessary “safety net” to protect trade between different parts of the UK.

The development has resulted in the pound falling by 0.6% against the dollar and 0.7% against the Euro. The Commission’s letter is the first step in a legal process against the U.K.’s Internal Market Bill that could result in a lawsuit at the European Court of Justice.

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