EU BEGINS ITS LEGAL ACTION AGAINST BRITAIN

The situation

The European Union launched legal action against the U. K. in a major escalation of tensions between the two sides less than three months after Brexit was formally completed. It follows Britain’s unilateral decision to delay implementing a key part of the Brexit deal relating to Northern Ireland.

What it means

The move could ultimately lead to financial penalties or trade tariffs being imposed on the U. K. The dispute has already led to disagreements over the export of COVID- 19 vaccines, and the U. K. has refused to grant full rights to the bloc’s ambassador in London.

The post- Brexit trade deal the two sides signed on Dec. 24 still hasn’t been formally ratified by the EU despite it taking effect on Jan. 1.

An EU official told reporters in Brussels on Monday that the bloc considered the U. K.’ s actions an enormous problem and raised doubts about the government’s commitment to the Northern Ireland part of the Brexit agreement. The official said he hoped the government would hold talks with the commission to come up with joint solutions and draw a line under the legal action.

More details

The commission is still deliberating whether to grant U. K. financial firms greater access to the bloc under a so- called regulatory equivalence decision. While there is no formal link between that decision and Monday’s legal action, there will be a joined- up response, said the official, who asked not to be identified because the process is private.

Under the Brexit deal, Northern Ireland effectively stayed in the EU’S customs union and single market. This avoided the need for border checks on the island of Ireland, but introduced them for the first time on goods coming into the province from Great Britain, leading to delays and disruption.