Prolonging the acquis: a blueprint for the Brexit transition

In a report published this week Piet Eeckhout and Oliver Patel assess the options for a Brexit transitional arrangement. They argue that the most realistic option is for the full body of EU law to continue to apply in the UK, while the UK simultaneously ceases to be an EU member state. The report’s conclusions are summarised here.

They may not see eye to eye on the big issues such as trade and migration, but Theresa May and EU leaders may be closer than you think to agreeing the terms and scope for a transition period. If the latest reports are correct, the prime minister may be about to double her offer on the financial settlement to £38bn in order to unblock the talks before the European Council summit on 14 December.

If she does, she has a realistic route to a deal on the transition. Indeed, the blueprint for a transition period that we advocate as the most viable – where the UK gives up its membership but accepts EU laws lock, stock and barrel – is the one that they are actually edging towards.

You just have to look at May’s Florence speech, in which she made clear that the UK seeks a transition where ‘access to one another’s markets should continue on current terms’, i.e. nothing changes. She even accepted that the framework for this period would be ‘the existing structure of EU rules and regulations’, with David Davis confirming in his speech last Thursday to German business leaders that the UK wants to remain in all EU regulatory agencies during the transition. Similarly, the EU has also indicated that it would accept a status quo transition, but this would require ‘existing union regulatory, budgetary, supervisory, judiciary and enforcement instruments and structures to apply’.

An extension of the EU acquis communautaire (the full body of EU law) to the UK, while the UK simultaneously ceases to be an EU member state, is the obvious choice for the post-Brexit transition. This is for three reasons. First, it’s comprehensive, meaning that very little changes on Brexit day, and a cliff-edge is avoided. Second, it’s relatively straightforward from a legal perspective, at least compared with the other options. The Article 50 withdrawal agreement could be the legal basis, meaning it would require approval only from a qualified majority of the European Council and the European Parliament, but not member state parliaments. It’s simpler than the UK re-joining the EEA Agreement via EFTA or crafting an EEA copycat agreement. The former would require treaty amendment and the approval of member state parliaments, while the latter would require bespoke institutional mechanisms for dispute settlement and enforcement to be set up. Third – and perhaps most importantly – it’s politically feasible.

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