Dave Keating Profile picture
Jun 15 20 tweets 7 min read
Today the EU fires back in a brewing 🇪🇺🇬🇧 trade war.

The Commission is expected to announce unfreezing of legal action against 🇬🇧 (and the start of new actions) following the UK government's tabling of legislation to undo the #Brexit divorce deal's Northern Ireland Protocol.
Both Brussels and national 🇪🇺 capitals were infuriated by Monday's bill from 🇬🇧 government which, if/when passed, would unilaterally terminate large parts of the NI Protocol by ending checks between Northern Ireland (in EU customs area) and Great Britain (not in EU customs area).
🇪🇺VP @MarosSefcovic reminded 🇬🇧 Monday that NI Protocol was a prerequisite for agreeing the free trade deal (TCA) that came later and is now in effect.

The widespread feeling in 🇪🇺 now is @BorisJohnson signed protocol in order to get the deal, with no intention of honouring it.
There were already early indications in 2019 that Johnson did not intend to implement his divorce treaty, well before the free trade TCA was signed.

The EU chose to ignore those signals at the time.
According to diplomats I've spoken to, today's legal action is only the beginning.

If this 🇬🇧bill is passed in its current form, 🇪🇺 may unilaterally terminate the TCA, leaving 🇬🇧 with #NoDealBrexit. The estimate is there is one year to resolve this before that 'nuclear option'.
🇪🇺work on terminating all or part of TCA was already started behind the scenes when 🇬🇧 was preparing a previous act invalidating divorce deal - later dropped.

Work may restart on that but not yet. 🇪🇺 wants to give space to resolve diplomatically, with a firm but serene response.
🇪🇺VP @MarosSefcovic outlining now the EU's response to 🇬🇧 undoing #Brexit divorce deal:

"Let there be no doubt - there is no legal or political justification whatsoever for unilaterally changing an international agreement"

"Let's call a spade a spade: this is illegal"
"The UK bill is extremely damaging to mutual trust and respect between 🇪🇺&🇬🇧," says VP Šefčovič.

"It has created deep uncertainty and casts a shadow over our overall cooperation. All at a time when respect for international agreements has never been more important."
"The Commission has decided to take legal action against the United Kingdom for not complying with significant parts of the protocol"

"We have been withholding this action over past year because we wanted to create constructive environment. But 🇬🇧 gov has left us with no choice"
"If 🇬🇧 doesn't reply within two months, we may take them to the Court of Justice"

"Second, we are launching 2 new infringements against UK - for failing to carry out necessary controls at border control posts...and for failing to provide 🇪🇺 with essential trade statistics data"
Šefčovič says 🇪🇺 has been trying to work with 🇬🇧 to solve problems UK says are happening. In October 🇪🇺 proposed "unprecedented flexibility", reducing controls 80% & halving customs paperwork

But UK hasn't significantly engaged, and has ignored requests for talks since February.
"Despite today's legal action, our door remains open to dialogue. We want to discuss these solutions with the UK government."

"Given that the UK hasn't sat down at the table with us since February, I think it's high time to find some political will to find joint solutions."
The protocol protects EU single market, VP says.

"The conditions which allow NI to access single market for goods are not for the UK to change. It's simply legally and politically inconceivable that the UK decides unilaterally what kind of goods can enter *our* single market"
VP Šefčovič addresses European suspicions of @BorisJohnson's duplicity.

"I'm sure the UK government knew perfectly well what they signed up to when they agreed to the protocol, although I have to admit they didn't do a very good job explaining it to the public."
Šefčovič asked what 🇪🇺 will do if 🇬🇧 ignores ECJ ruling. Will the TCA be terminated?

"The role of the ECJ rulings is clearly reflected in the withdrawal agreement and protocol. Not respecting ECJ ruling would be piling on breach of international law upon another."
"Does 🇬🇧 want to go in that direction? [violating international law] when the rule of law is something we're discussing in all international fora these days?" asks @MarosSefcovic.

"Is it compatible with the proud 🇬🇧 traditions of upholding and respecting the rule of law?"
"How would other international partners look at the UK when they're negotiating agreements with them?"

"Will it stick? Will it be respected? These are questions for the UK gov to respond to."

"Let's come back to the safe ground of respecting treaties and international law"
On whether 🇪🇺will terminate 🇪🇺🇬🇧 free trade TCA in response to 🇬🇧 violating NI Protocol, Šefčovič says:

"If this draft bill becomes law then of course I cannot exclude anything. But we are not there yet, and we want to solve this issue as 2 partners should: through negotiations"
The UK government has responded: a spokesperson says the EU's response is "disappointing".

"The EU continues to insist it is unwilling to change the Protocol itself, so we are obliged to act ourselves to change the parts of the Protocol that are causing problems."
In 🇪🇺 capitals, @BorisJohnson's tabling of a bill to undo the 🇮🇪Protocol in #Brexit divorce deal is nothing short of a declaration of [trade] war. VP Šefčovič said there was no choice but to respond with legal action.

But 🇬🇧 says they have no choice but to tear up the protocol.

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More from @DaveKeating

Jun 14
🇪🇺Parliament just rejected the #taxonomy list of investments considered green, which controversially included both #nuclear & #gas as a result of a delicately crafted compromise between national governments

76 members of ECON & ENVI committees voted to reject, 62 voted to accept
"Russia's invasion changed the thinking on this " one EP source tells me.

Here's the background of how we ended up with this 🇪🇺 proposal to deem nuclear & gas as green.

TLDR: it was a political compromise between anti-nuclear🇩🇪 & anti-gas 🇫🇷.
energymonitor.ai/finance/report…
The taxonomy list proposal was made before the #UkraineWar.

The thinking is it probably would have gotten through the parliament were it not for Russia's invasion. But the idea of including gas as a 'transition fuel' eligible for green funds is now unpalatable.
Read 4 tweets
Jun 13
🇪🇺VP @MarosSefcovic responding now to 🇬🇧legislation undoing NI Protocol of #Brexit divorce treaty:

"🇪🇺&🇬🇧are partners facing same global challenges where upholding the rule of law is imperative. This relationship must be based on full respect of our legally binding commitments" Image
"After countless hours of intensive line-by-line negotiations, the NI Protocol was the one and only solution we could jointly find to protect hard-earned gains of the peace process in NI while addressing the challenges created by #Brexit and the type of Brexit chosen by 🇬🇧"
"Renegotiating the protocol is unrealistic," says 🇪🇺VP Sefcovic.

"No workable alternative solution has been found to this delicate long-negotiated balance. Any renegotiation would only bring further legal uncertainty for the people and businesses in NI"

"🇪🇺will not renegotiate"
Read 9 tweets
Jun 8
On the Whit Monday holiday I made a trip to #Rijeka Croatia (formerly Italian #Fiume).

This fascinating city is often called “the birthplace of Italian Fascism”. I wrote a screenplay about it at university so I wanted to visit.

The interwar period here has a complex legacy.
Fiume was part of 🇦🇹🇭🇺Empire and served as the only Hungarian port. After WW1 it was given to Yugoslavia despite having a majority Italian population.

Italian poet Gabriele D’Annunzio invaded the city and made himself dictator. They were filming a movie about him during my visit
D’Annunzio’s “Italian Regency of Carnaro” lasted 1919 to 1920. The Kingdom of Italy opposed it and said it should be given back to Yugoslavia.

A constitution was adopted that later served as a basis for Mussolini’s fascists. D’Annunzio’s ideals and techniques were later emulated
Read 12 tweets
May 31
Leaving #EUCO summit, 🇫🇷President #Macron tells journalists the exemptions for 🇭🇺🇸🇰🇨🇿 in the 🇪🇺ban on #RussianOil agreed last night are minimal.

He vows the exemptions will be time limited. But there is no such time limit in the deal. Leaders expected to revisit next month.
Macron says he doesn't rule out 🇪🇺 following up with a #RussianGas ban. “We have to keep credibility and this strategic ambiguity is also useful”

But privately energy industry insiders & EU sources tell me at this time there is almost no chance of an EU embargo on Russian gas.
Read 6 tweets
May 30
This is a compromise that will only ban #RussianOil imports by ship, but keep imports via pipeline. That was the only way they could overcome the veto from Hungary's Viktor #Orban.

It is a political agreement, it will still need to be translated into a legal text in coming days.
Breaking the impasse on the #OilEmbargo means that the entire sixth package of 🇪🇺sanctions against Russia can now be adopted.

It includes a #SWIFT ban on Sbrebank, banning 3 Russian broadcasters and new sanctions on individual Russians.
Read 18 tweets
May 30
Leaders now arriving for the #EUCO summit in Brussels.

The big question journalists will be asking: are we really close to a Russian #OilEmbargo agreement today, and what are the details of this compromise?
Entering #EUCO, 🇪🇺President @VonDerLeyen pours cold water on the rumours we are close to a #RussianOil ban deal.

"My expectations are low that it will be solved in the next 48 hours, but I'm confident that thereafter there will be a possibility."
Now entering: the man of the hour.

Will #Orban drop his veto on the EU's #RussianOil embargo today?
Read 12 tweets

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