On January 31 the UK's withdrawal from the European Union took effect and a transition period began until December 31 this year, in which EU law will continue to be applicable in relationships with the United Kingdom, while waiting for a future agreement setting out the conditions governing bilateral relationships from that date onwards. Until this happens, companies crucially need to prepare contingency plans enabling them to anticipate and start preparing for any processes that will take longer and will be necessary to continue trading with the UK from 2021.
The Spanish Tax Agency (AEAT) publishes new leaflets to assist operators with their obligations in relation to Brexit (see here).
As already adopted by other EU member states, on 12 September 2019 contingency measures were approved by the Portuguese Council of Ministers and should be applied to credit institutions, investment companies and management entities with head office in the United Kingdom in the event of Brexit without a deal.
A no deal Brexit could prompt legal action by the European Union against the UK to claim payment of the financial obligations it assumed before its exit. This massive lawsuit, over a sum possibly in the region of 50 billion euros, could have extremely serious implications for the UK as a sovereign state.
Royal Decree-Law 5/2019, of March 1, 2019, adopts a number of contingency measures in light of a potential no-deal regarding the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union on March 30, 2019, including labor and social security measures.
The Spanish government has adopted a range of contingency measures to prepare for the event of the United Kingdom leaving the European Union without an agreement on March 30, 2019. They are temporary measures approved through Royal Decree-Law 5/2019, of March 1, 2019. In this article we discuss the ones relating to employment and social security, to judicial cooperation in civil and commercial matters, to financial services, and to customs.
On March 23, 2018, the European Council adopted the guidelines on the framework for the future relationship between the European Union and the United Kingdom. The guidelines confirm that the economic relationship will be shaped by a free trade agreement. The guidelines also imply the rejection of the British proposal to replicate the single market for financial services.
On February 28 last the European Commission published the Draft Agreement on the withdrawal of the United Kingdom from the European Union (“EU”). This draft, based on the Joint agreement submitted by the the negotiators of the EU and the United Kingdom on December 8, 2017, will set the tone for the future negotiations between the Union and the United Kingdom.