EU Gives Johnson Until End of Month to Back Down on Brexit Law

The European Union threatened Boris Johnson with legal action over his plans to tear up parts of the Brexit Withdrawal Agreement, giving the British prime minister until the end of the month to back down.

The bloc also warned that U.K.s plan would jeopardize efforts to sign a wide-ranging trade agreement between the two sides. The pound extended losses, falling by as much as 1.1% against the dollar.

“Violating the terms of the Withdrawal Agreement would break international law, undermine trust and put at risk the ongoing future relationship negotiations,” the European Commission said in a statement on Thursday. “The Withdrawal Agreement contains a number of mechanisms and legal remedies to address violations of the legal obligations contained in the text -- which the EU will not be shy in using.”

Johnson is facing a backlash from the EU and from within his own ruling Conservative Party after his government said it is ready to break the commitments it gave to the EU over the Irish border when it left the bloc. The row has dramatically increased the risk that the two sides wont reach a trade accord by the year-end, threatening businesses with additional costs and disruption.

The EU said that if Johnson doesnt comply with its demands, it will potentially seek financial and other penalties.

By putting forward this Bill, the UK has seriously damaged trust between the EU and the UK. It is now up to the UK government to re-establish that trust.

My statement following today's extraordinary Joint Committee on the #WithdrawalAgreementhttps://t.co/fiRyTxVNQD

— Maroš Šefčovič (@MarosSefcovic) September 10, 2020

The U.K. Internal Market Bill, tabled earlier on Wednesday, would allow ministers to override parts of last years Brexit agreement to ensure companies in Northern Ireland have “unfettered access” to the U.K. internal market, potentially throwing up obstacles to trade with the rest of the island of Ireland.

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— With assistance by Kitty Donaldson, and Alberto Nardelli