EU could force 37 new laws on UK, leaked report shows

BRITAIN could be forced to accept nearly 40 EU directives during a twoyear transition period after Brexit, according to leaked Whitehall analysis.

A report obtained by The Daily Telegraph reveals a series of controversial new EU laws that Britain will be powerless to stop. One of the most contentious would compel every British household to have four different recycling bins in order to hit EU targets.

Another of the 37 directives would enable Brussels to mount a massive raid on the City of London, while the UK could also be bound by renewable and energy efficiency targets for up to a decade after leaving the EU.

The report could prompt a new Cabinet row as Eurosceptics including Boris Johnson, the Foreign Secretary, have warned that Britain should not accept any new EU rules during transition. They are also concerned Britain could be forced to accept the new laws without having any say or the power of veto.

Jacob Rees-mogg, the leader of a group of 60 Eurosceptic Tory MPS, told The Telegraph: “European Union laws that could come in after we have left may look to the Government as ‘a cloud no bigger than a man’s hand’ but could turn into a torrent similar to the one unleashed by Elijah.

“It could drown the City of London, soak consumers and flood farmers. The range and extent of these laws covers almost everyone in the country one way or another and we would have no say at all over some laws that we could now veto. The chance for a vengeful EU to cause regulatory damage to us may be too great for them to resist and the Government needs to be strong in refusing to accept new laws once we have left.”

The issue is likely to be debated at meetings of the Cabinet sub-committee on Brexit tomorrow and Thursday, which sources say could see some “explosive” clashes.

Ministers are already at loggerheads over plans for a customs arrangement with the EU after Brexit amid concerns that it could limit the UK’S ability to

strike free trade deals. The Whitehall analysis rates each policy on how likely it is to “materialise” and the potential “risk” it poses to the EU. One of the most contentious directives would give the European Union the power to raid the City of London and force “clearing houses” for euros to relocate to the continent.

Clearing houses ensure the smooth completion of a transaction and sets aside funds to protect investors if a trade defaults.

Three-quarters of eurodenominated business is cleared by houses in London, providing the City with 83,000 jobs and up to £80 billion per year.

The analysis considers the European Market Infrastructure Regulation Supervision directive “highly likely” to be implemented during transition and poses a “high risk”. Ministers warn that it risks “fragmenting” financial markets and could “act as a drag” on growth.

Similarly, the EU’S waste framework directive is considered “highly likely” to come into force and would compel Britain to increase recycling rates from 44 per cent to 70 per cent, which ministers say is unfeasible.

It would mean all households would have to separate food, garden, recycling and household waste. There are also fears that Britain may have to accept targets on energy efficiency and renewables for a decade after Brexit. Other controversial policies include making insurance compulsory on tractors, quad bikes and mobility scooters and limiting phosphates in fertilisers, which could drive up prices.

The documents reveal that five EU directives have a “high likelihood of materialising” while nine are highly likely to be implemented.

Mr Johnson has suggested that new EU laws during the transition period should be a “red line” for the Government. He said last year: “You heard the Prime Minister say very clearly in Florence that she envisages the transition period being run under existing arrangements. That was the phrase she used: ‘The existing rules’.”

David Davis, the Brexit Secretary, is demanding a mechanism that will enable the Government to contest any new laws. A Government source said: “An implementation period is vital to avoid a cliff-edge for people and businesses, giving clarity and certainty as we leave the European Union.

“As [Mr Davis] has said, given the way the EU works, virtually all of the major laws that will be introduced during the time-limited implementation period are being negotiated now, while we are in the room.

“Of course we will need to agree a way of resolving concerns if we think there are laws that are contrary to our interests. We will agree an appropriate process for this temporary period.”