BREXIT

Brexit is an acronym for the words “Britain” and “exit” and refers to the process of the United Kingdom leaving the European Union.

The withdrawal process of any Member State is regulated by the article 50 of the Treaty on European Union. Under his precept, any country belonging to the Union may decide upon its exit in accordance with its constitutional rules. Following the announcement of this decision, the EU will negotiate with this State the form of its withdrawal and its future relations with the Union.

This process of the United Kingdom’s exit was initiated as a result of the referendum held on 23rd June 2016 and the later notification to the European Council on 29th March 2017.

Although the UK’s exit from the European Union took place on 1st February 2020, the Withdrawal Agreement, which regulated an orderly exit of the United Kingdom from the Union and maintained the application of the acquis communautaire within its relations with the Union until 31st December 2020, come into force from that day.

The relationship between the United Kingdom and the European Union is based on the “Trade and Cooperation Agreement” as of 1st January 2021. It is an ambitious deal, but it represents a major change for EU and UK citizens, businesses, and administrations.

What is the Trade and Cooperation Agreement?

The Trade and Cooperation Agreement is a long and complex document whose contents can be divided into four main blocks: the first one is about Free Trade, which eliminates fees and tariffs between the UK and the EU, and it establishes a chapter about “Level Playing field”, one of the Union’s principal demands during the negotiations. The second one establishes a framework for economic, social, environmental and fisheries cooperation, with provisions to ensure energy and transport connectivity, and also coordination in areas related to social security. The third one regulates an internal security association based on existing mechanisms such as Europol or Eurojust and includes provisions on the surrender of arrested people, and on the fight against money laundering and the financing of terrorism. Finally, a fourth block establishes a common governance underpinned by an institutional framework that includes an "Association Council", co-chaired by a member of the European Commission and a ministerial-level representative of the UK government, who will oversee the implementation of the Agreement and will be assisted by Specialised Committees and Working Groups.

What is the Withdrawal Agreement?

The Withdrawal Agreement is the one that defines the terms of the United Kingdom's exit from the European Union and the European Atomic Energy Community (EURATOM). Its content was originally agreed by negotiators on 14th November 2018 and endorsed on 25th November 2018 by the European Council (article 50). After a change of government in the UK, the parties’ negotiators revised the text of the Withdrawal Agreement, in particular concerning the Protocol on Ireland/ Northern Ireland and the negotiators reached a new agreement on 17th October 2019. The European Council approved the new text on the same day, and the European

Union and the United Kingdom signed the withdrawal agreement on 24th January 2020. Following the vote of approval by the European Parliament on 29th January 2020, and the Council Decision concerning the finalisation of the Withdrawal Agreement on 30th January 2020, the Agreement came into force on 1st February 2020.

What is the transition period?

The transition period was a direct consequence of the Withdrawal Agreement which foresaw a transition period until 31st December. Within this period, the EU acquis continued to be applied in the relations with the UK. This period could be extended once, for a period of one or two years, but such extension would have to be decided by mutual agreement between the EU and the United Kingdom before the 1st of July 2020. However, the UK rejected this possibility before the aforementioned deadline.

During the transition period, EU law continued to apply to and within the UK. The EU maintained relations with the UK as if it were a Member State, except for its participation in EU institutions and governance structures.

On the other hand, during the transition period, the Agreement that regulates the relationship between the two parties since the 1st of January 2021 was negotiated and approved.

SOURCE: Ministry of Labour, Migrations and Social Security, Government of Spain (Ministerio de Trabajo, Migraciones y Seguridad Social)