EU threatens fines or trade sanctions if UK reneges on Brexit deal

Brussels plans to impose fines or even suspend trade benefits if the U.K. does not comply with the terms of a planned post-Brexit deal, the European Commission said Monday.

A presentation shared with EU diplomats says that the bloc wants its future relations agreement with Britain to be governed by “efficient and effective arrangements for management, supervision, implementation and review” of the deals clauses.

The push for robust enforcement comes as the EU insists on the need to accompany the deal with a strong level playing field, meaning the adherence to the blocs environmental, social and competition rules. Brussels has also noted with concern that U.K. Chancellor Sajid Javid said over the weekend that “there will be no alignment” with EU rules post Brexit.

A graphic obtained by POLITICO shows that the Commission wants to discourage the U.K. from violating the rules of a future deal by establishing an joint committee that seeks to solve disputes via consultations, or starts legal proceedings if mediation is unsuccessful.

In the latter case, an arbitration panel would assess whether the issue relates to EU law, and in such a case send it to the Court of Justice of the EU in Luxembourg for a “binding ruling,” or alternatively rule itself on the dispute.

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