The transition period is currently underway and the UK has officially left the EU – although not everything is settled between the two sides yet. Talks to negotiate a Brexit deal are ongoing despite the coronavirus, and the UK and EU are still subject to the same rules it has enforced throughout its 45-plus-year relationship.
Having joined the ECC in 1973, the UK and the EU still have a long way to go in the ongoing talks.
We are in the middle of an 11-month transition period, which will end on December 31 of this year, giving both sides time to agree on how EU-UK relations will work.
The UK’s departure from the EU will undoubtedly leave a pretty big hole in the EU’s finances – Brussels, of course, wants to minimize its losses, or at least put off the question of whether or not for as long as possible. it asks rich countries to pay more into the budget or cuts spending in poorer countries.
Much of the money requested by the European Commission was pledged by David Cameron, when he was Prime Minister, to the EU’s long-term budget for the period 2014-2020.
Why does the UK owe the EU money?
When the UK triggered Article 50 in March 2017, the two sides then had to come to a “Withdrawal Agreement”.
This Withdrawal Agreement covers how the UK terminates its membership; it meant agreeing on things like its financial demands – the Divorce Bill – and the rights of EU citizens in the UK and a plan to deal with the Irish border.
If we leave the EU without a deal, strictly speaking, the divorce bill will not be owed by the UK to the EU.
It is not clear that the UK would be forced to pay anything if we left without a deal, but the EU could take the case to the International Court of Justice due to the UK’s repeated commitments to pay.
The UK government has said it will not agree to follow an EU regulation in exchange for unfettered trade; the EU insists that there can be no trade deal unless Britain agrees to a “level playing field” and undermines EU regulations.
Chief negotiator Michel Barnier warned that there could be no “business as usual” if no agreement was reached by the end of the year.
“If we don’t have an agreement… we have to face the risk of a cliff, especially for trade,” he said earlier this year.
For all countries that the UK does not have a trade deal with at the end of the transition, World Trade Organization rules will come into effect, resulting in tariffs and trade barriers.
This would not only impact the UK, but also its other trading partners.
Many are hoping that a deal will be reached by the end of the year, especially given the economic downturn caused by the coronavirus, and that negotiations could continue in other areas, but it remains to be seen exactly. what would be inside or outside.