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Free AccessMNI INSIGHT: EU Mulls Brexit Legal Fix, Won't Win Over ERG
By Kevin Woodfield and David Robinson
LONDON (MNI) - Brussels is considering a legal device aimed at providing
the UK with greater comfort that the Irish backstop is not designed as a
permanent customs union trap, MNI understands, but there is little prospect of
Prime Minister Theresa May buying off her hard Brexit opponents.
MNI understands that what has become known as the Danish Protocol solution
is
currently being 'cooked up' for a legally-binding decision of EU leaders in
the European Council.
But previous instances where the device was deployed failed to sway members
of the European Research Group, the hard Brexit wing of Conservative MPs who
forced May through a no confidence vote yesterday which resulted in more than a
third of her parliamentary party rejecting her continued leadership.
Such a device would take the form of a 'Decision of the Heads of State and
Government', binding in international law, designed to clarify how the
contracting parties to a treaty think it ought to be understood and applied,
Kenneth Armstrong, Professor in European Law at Cambridge University, and head
of a research project on Brexit legal issues, told MNI.
--SAVING THE BACON
It was first used to deal with problems in Denmark in ratifying the
Maastricht Treaty and was employed again following the problems in Ireland in
ratifying the Lisbon Treaty, Armstrong pointed out. It resurfaced for David
Cameron's renegotiation on what 'ever closer union' meant before he embarked on
the 2016 referendum.
Opposition to the effectiveness of such a device in the context of May's
beleaguered efforts to secure her Withdrawal Agreement compromise deal may not
be limited to the rebellious ERG. Armstrong recalls, during the ill-fated
Cameron renegotiation, the then Justice Secretary Michael Gove savaged the
concept and suggested it could be overturned by the European Court of Justice.
The clarifications would address the circumstances in which the Irish no
hard border backstop might be triggered. What May's disillusioned Irish DUP
partners as well as the ERG are most worried about is whether the UK could get
out of it should this occur.
"It's also not clear that the [device in the Brexit case] completely holds
as it is a Decision of the Heads of State and Government of the EU Member States
about the treaties which bind those states together," Armstrong elaborated.
"Here we are talking about an agreement between the EU27 and the UK and so it
would seem at the very least have to be a decision of the EU27 and the UK."
--POLITICAL IMPERATIVES
Another problem for the Danish Protocol solution is that when it was
employed in Denmark and Ireland, protocols were added to the treaties to bring
these clarifications and changes directly within binding EU law. In contrast,
the EU treaties will cease to apply to the UK once it leaves.
Finally, the device has been deployed in respect of treaties that have been
agreed and either are completely ratified or in the process of ratification,
Armstrong said, whereas the Withdrawal Agreement has been initialled but the
European Council and European Parliament have not voted on it.
"It might be argued that the text should simply be re-opened rather than
clarified," Armstrong concluded. But he acknowledged that the political
imperative for the EU to assist May with clarifications could result in these
imperfections being overlooked.
--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com
[TOPICS: M$B$$$,M$E$$$,M$X$$$,MC$$$$,MT$$$$,MX$$$$,MGB$$$,MGX$$$]
To read the full story
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Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.