Typical! Bitter Brussels to BLOCK Britain from key treaty in ‘tit for tat’ Brexit response

Brexit deal 'was always a dreadful deal' says Farage

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

The Lugano Convention provides for the recognition and enforcement of a wide range of civil and commercial judgements between the EU and EFTA states. It is an international agreement and other states may join subject to approval of the present parties to the agreement.

It allows citizens and companies to rely on uniform framework conditions for cross-border legal protection and makes it possible to obtain security from the competent court in the event of a dispute.

But following Britain’s departure from the EU, the Convention no longer applies and cross-border legal transactions are based on the domestic regulations of the states involved.

Therefore, prosecution in British-linked cases is now burdened with uncertainties and additional costs.

In a bid to avoid this, discussions were held on whether Britain could join the Convention as an independent contracting party.

This would require the consent of all current parties in the Convention and following the UK’s request in April 2020, the EFTA states signalled their support.

However, in a bitter blow to Britain, the European Commission has moved to reject the request on behalf of the EU.

In a verbal note, the Commission said the “EU is not in a position to give its consent to the United Kingdom being invited to join the Convention”.

Christian Kohler, Director General at the Court of Justice of the European Union, claimed the Commission’s rejection was “politically and legally” problematic.

He said: “Whether the matter is therefore done is an open question, however.

“The Commission’s approach is politically and legally highly problematic.

“In a communication to the European Parliament and the Council – the legislative institutions of the EU – the Commission justified its position with the ‘essence’ of the Lugano Agreement, which is an accompanying measure for the EU’s economic relations with the EEA / EFTA states that at least partially participate in the EU internal market.”

He went on to say how the EU argument of “inadequate economic relations” between the UK and the bloc is a “cover-up”.

DON’T MISS 
Poland declares state of emergency as Belarus opens migrant floodgates [REVEAL] 
POLL: Do you blame UK or US government for the mess in Afghanistan? [INSIGHT] 
Labour MP Neil Coyle grills Dominic Raab over strained US relations [COMMENT]

Mr Kohler added: “In fact, the argument of the allegedly inadequate economic relations between the EU and the United Kingdom is only used to cover up the fact that the rejection of the application for membership is nothing more than a political reaction to Brexit, a ‘règlement de comptes’ after the longstanding member state has turned away from the EU with its sometimes painful side effects.

“The Commission’s only remarks to the fact that this tit-for-tat response is at the expense of those seeking justice on both sides of the English Channel was that the ‘interested parties concerned’ would just have to adjust to other legal bases.”

The EU’s rejection ignores the support of the EFTA states – which include the likes of Switzerland, Iceland and Norway.

Mr Kohler continued: “Neither these states nor the institutions involved should allow this to happen; rather, they should assert their position on the question of the UK’s membership in the European judicial area in the interests of citizens and businesses.”

London is regarded as the global capital for international dispute resolution, due to the UK’s world-class legal system and courts.

A long-term failure to rejoin the Lugano Convention could do real damage to the UK’s world-beating legal services sector, as well as creating difficulties for large companies.

A UK Government trade adviser, who wishes to remain anonymous, said the EU needs to be very careful as Switzerland might “react” if the bloc continues to throw off Britain.

He told Express.co.uk: “I think the EU has to be careful, particularly with the EFTA countries and Switzerland, as they could push them away with their actions.

“Mainly Switzerland because what Switzerland does is different.

“It voluntarily aligns to EU regulation, which is obviously quite controversial and it is becoming more and more controversial.

“For example, the Swiss had their own data protection act, lower penalties for GDPR and the EU said because it was different, that they were going to punish them on financial services even if the outcome was the same.”

Additional reporting by Monika Pallenberg

Source: Read Full Article