What’s the effect of Brexit on the law firms in London?

 

Brexit is no longer a speculation but a reality after the EU Referendum lead to a 52% ‘Leave’ vote. What stays to be witnessed is how and when we leave the EU and what the shape of our future relationship with it will be. There are still a large number of surprises but the impact of Brexit on the UK’s legal scenario could be far reaching in several areas, whatever form Brexit asks.

Under the Ordinary Legislative Procedure (in somewhat simplified terms), the Executive body, the European Commission (essentially the EU’s civil service and government) suggests fresh legislation. The proposals are then remarked on and revised by the European Parliament (which has sprightly chosen representatives but no legislative initiative) and by the Council of the European Union (Council), the big decision making body made up of ministerial representatives from each Member State. Trilogies then start between the three bodies to resolve differences and finally agree legislation. Legislation can also be adopted under the more complicated Special Legislative Procedure. For legal firms in London, it is more than necessary to keep a close check on this part.

Treaties

The Treaties of the European Union set out the constitutional basis of the EU and are the supreme level of EU legislation. They create the Single Market based on the four basic freedoms of the European Union: freedom of movement of people, services, goods and capital. EU Treaties are included into UK law by the European Communities Act 1972 (ECA) which also provides the legislative basis for transposing EU law into domestic law and gives precedence to binding provisions of EU law over inconsistent UK legislation and legal firms in London.

Regulations and Directives

At the next stage of legislation are EU Regulations. These are directly applicable under the Treaty on the Functioning of the European Union which means they apply in Member States without the need for executing legislation. On the contrary, Directives require Member States to draft legislation to transpose them into their own law. This has resulted in individual Member States taking differing approaches, for example, by 'gold plating' legislation, i.e. going beyond the scope of the Directive. As the EU has concentrated on ever closer union, however, Directives have lately tended to be optimum harmonisation measures which means that gold plating is not allowed and guidelines to prevent gold plating were embraced in the UK in 2011.

Decisions

At the extreme end of the legislative scale are Commission Decisions which are binding on the subject, and opinions and recommendations which have no legally binding effect.

Fields of influence

The EU can only legislate in specific areas. It has no decision to adopt legally binding acts which require Member States to harmonise their laws on areas including healthcare, culture, industry, education and tourism. It has exclusive competence in the areas of customs union, competition and some common procedures. Other areas have shared competence (which means Member States can act if the EU has chosen not to). These areas include social policy, agriculture, consumer protection, transport and the environment. The UK has various opt-outs, including one in regard of laws on freedom, security and justice.