Brexit - current situation & outlook
On 23 June 2016, the UK held a referendum on whether the UK should remain part of the European Union. The outcome of the referendum was a narrow majority vote. As a result, the UK should exit the European Union (EU).
Britain officially started the Brexit on 29 March 2017, by triggering article 50 of the Lisbon Treaty. Hereto, Prime Minister, Theresa May, submitted a letter to the president of the European Council, Donald Tusk, to provide notification of Britain's intention to leave the European Union.
What is the UK actually exiting from?
“Brexit” means – well, Brexit – but more specifically, it means that the UK intends to leave the European Union. It may still remain in the EU Customs Union and European Economic Area, join the European Free Trade Association or indeed, take on elements of the Schengen Agreement – or some complex amalgam of the above and more.
The referendum itself has no legal effect on the UK’s membership of the EU. It is an indication of the view of UK voters. In order to affect an exit from the EU the Prime Minister must give notice under Article 50 of the Lisbon Treaty.
If notice is given, a two year negotiation period will commence to establish the terms of the UK’s exit.
When Article 50 is invoked there will be a period of negotiation. The Lisbon Treaty allows a two year period which can be extended with the agreement of all EU member states if agreement is not reached in that time. If there is no agreement to extend, the withdrawal date of the UK from the EU will be two calendar years from giving notice.
During the period of negotiation, EU Treaties will still apply to the UK. However, there are large areas of UK law and regulatory practice that are currently based on EU law and practices. For the vast majority of legislation, the UK will have to adopt equivalent or replacement national legislation.
From a practical point of view, the president of the European Commission, Jean-Claude Juncker, has confirmed that that the actual negotiations between the UK and the EU will, however, not start until after the general election in the UK on 8 June. But the election will not delay the Brexit negotiations significantly. In this respect, the EU parliament has already adopted a resolution by a vast majority to decide on the outlines of the negotiation period, in order to take full speed after the elections.
BDO is sharing its insights on the impact of the UK exit out of the EU in the news items displayed below.
Our experts can help you assess the impact on your business
The economic, business, legal, regulatory and tax implications will be determined by the political process and negotiations yet to unfold, but BDO is well-positioned to monitor and inform its clients.
Our experts can support your business in:
- Assessing the impact of the upcoming market conditions and regulations
- Identifying risks and opportunities
- Working out new strategies to deal with the new economic and regulatory environment
Please feel free to address your questions to your regular BDO contact, or one of our experts
We kindly recommend visiting this webpage regularly to follow up on any update.