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30 January 2019
Issue: 7826 / Categories: Legal News , Brexit
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Confusion as exit day looms

Businesses will accelerate no-deal plans despite vote

EU leaders moved quickly to scotch Brexiteer MPs’ plans to revise the withdrawal deal after this week’s Commons vote as businesses stepped up nodeal contingency plans.

With less than two months to go until exit day, MPs voted for a non-binding amendment rejecting a no deal departure and for an amendment requiring Prime Minister Theresa May to go back to Brussels to renegotiate the backstop that protects the border between Northern Ireland and the EU.

Within minutes of the vote passing, however, European Council president Donald Tusk had issued a statement that ‘the backstop is part of the withdrawal agreement and the withdrawal agreement is not open for renegotiation’.

According to Confederation of British Industry head Carolyn Fairbairn, businesses will be continuing or ‘accelerating’ their no-deal plans following the vote. Other lawyers warned the vote made judgment enforcement in Europe look ‘more complex’.

David Greene, NLJ consultant editor, said: ‘We have now completed another stage in the Brexit process prescribed by section 13 of the Withdrawal Act. We had the “meaningful vote” in which the Government lost heavily. We have now had the return to Parliament on a Government motion to endorse the way forward. This was subject to seven proposed amendments of which two passed; one to press the EU for changes to the NI backstop, the other to give voice to the wish not to leave without an agreement. The House rejected the more precise amendment from Yvette Cooper along the same lines.  The amendments were, however, amendments to a motion and are thus not binding on the Government but reflect the will of Parliament.

‘While this ups the pressure to avoid leaving without an agreement, “no deal” remains on the table at the moment unless by some chicanery Parliament can grab the ability to create a statute to bind the Government. That seems highly unlikely. So it is probably like this: If the Government can sort a new backstop deal the PM might secure her deal with Parliament. If she can’t and the deal is defeated she will have the choice of leaving without a deal or asking the EU to delay the Article 50 exit. Now the Government makes its way to Brussels to see if it can alter the backstop.  It’s going to the wire and for the time being the Government retains the whip hand over Parliament.’ 

Barrister Andrew Stafford QC, of global disputes law firm Kobre & Kim, said: ‘In the wake of the Brexit vote [this week], the picture of judgment enforcement throughout Europe has become more complex.

‘Under EU regulation, a streamlined, administrative process allows courts to recognise and enforce judgments handed down in other member states. But with the uncertainty posed by a yet unknown deal, this process has been put in jeopardy.

‘If current frameworks are not maintained, judgment creditors would need to navigate the domestic rules of member states and we would expect to see a need for expertise in multi-jurisdictional enforcement strategies.’

Issue: 7826 / Categories: Legal News , Brexit
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