Here is the state aid section of the Internal Market Bill. It basically says the NI Secretary of State reserves the right to interpret Article 10 of the NI Protocol and to “disapply” it, that he cd bring in rules to the effect that EU state aid law can’t apply in NI or GB...
The bill also says the NI Secretary of State could decide that Article 10 of the Protocol can’t “be interpreted” according to ECJ case law
Or he could introduce a law that means EU state aid rules cannot be binding on the UK because of an interpretation of Article 10.
And finally it says the Secretary of State could bring in a law meaning no-one could take court action if they feel EU state aid rules have been broken, even “as a result of relevant international...law”
Any such court action would not be “recognised, available, enforced, allowed or followed”
This, it seems to me, is entirely at odds with the Protocol. The Protocol applies EU state aid law in NI and if there’s a knock on effect of subsidies for a GB company, with subsidiaries in NI, EU state aid law applies there as well
The Protocol draws in from Article 107(3) of the EU treaty the application of EU state aid law. That relies on ECJ case law, and it allows the Commission, a govt or a company to take court action if they believe there’s an illegal subsidy
What Clause 42 of the Internal Market Bill suggests is that the NI Secretary of State can just scrap all that

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More from @tconnellyRTE

10 Sep
Here is a thread on the legal advice the European Commission has circulated to member states following the publication of the Internal Market Bill:
1/ The advice says the UK’s attempt to override elements of the NI Protocol are a “clear breach” of the Withdrawal Agreement and would allow the European Commission to take legal action on several grounds.
2/ The advice says the Withdrawal Agreement was ratified by both the EU and UK and entered into force on 1 February. “Since then, no Party can unilaterally change, clarify, amend, interpret or disapply it anymore."
Read 12 tweets
7 Sep
How does the NI Protocol entangle the UK in the EU's state aid rules? Here's an attempt to explain the issues:
1/ As NI will be a de facto member of the single market, it is subject to EU state aid law. The British government can't subsidise companies there that would give them an unfair advantage over, say, competitors south of the border...
2/ What's more, the European Commission has made it clear that it interprets that provision also applying if the UK govt subsidises a company which has significant subsidiaries in NI. In other words, the effect of state aid in NI via the Protocol would have a reach across to GB
Read 15 tweets
6 Sep
Hard to know what to make of @pmdfoster story on the Internal Market Bill and the NI Protocol, except to say that Peter has been unfailingly accurate and painstakingly diligent in his long reporting on Brexit.
2/ The immediate response from my Irish sources are as follows: "not good" and that it is "clearly part of an overall stepping up of the noise by the UK", but that Michel Barnier's Task Force would want the UK to clarify things this week
3/ I won't indulge in the rampant speculation about UK tactics on the NI Protocol and whether the Internal Market Bill threat is designed to force the EU into some Spaghetti Western finale involving the WA, state aid and the kitchen sink...
Read 16 tweets
6 Sep
Breaking: further statement from UK govt:

“We will always reserve the right to act in the best interests of Northern Ireland and the UK’s internal market.
Our top priority is to preserve the huge gains from the peace process and the Belfast (Good Friday) Agreement, as well as protecting Northern Ireland’s place in our United Kingdom.
We are working hard to resolve outstanding issues with the Northern Ireland Protocol through the Joint Committee and will continue to approach these discussions in good faith.
Read 4 tweets
6 Sep
BREAKING Boris Johnson statement just out:
“Prime Minister Boris Johnson will say today (Monday):

“We are now entering the final phase of our negotiations with the EU.
The EU have been very clear about the timetable. I am too. There needs to be an agreement with our European friends by the time of the European Council on 15 October if it’s going to be in force by the end of the year.
So there is no sense in thinking about timelines that go beyond that point. If we can’t agree by then, then I do not see that there will be a free trade agreement between us, and we should both accept that and move on.
Read 9 tweets
19 Jul
Snapshot of where things are at the Covid 19 recovery summit as of 18:30 CET: There's still no sign of leaders meeting in plenary session, following a day of bilaterals and multilaterals involving @eucopresident Charles Michel, and no fresh negotiating text
2/ According to one diplomat, there is a growing feeling among some member states (neither frugal nor southern), that the longer the summit goes on the more concessions the Frugals are demanding
3/ Overnight the level of grants (as opposed to loans) was at €450bn, but it was soon clear that that wd go down to €400bn (which Italy and Spain seemed resigned to). However, the Frugals have been pushing to lower that to €375bn or 350bn, acc to one diplomat
Read 10 tweets

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