Brexit and the Consequences for Commercial and Financial Relations between the EU and the UK

Abstract

The UK’s withdrawal from the European Union will have – and already has – a dramatic impact on the political, legal and economic landscape, both in Britain and on the continent. This contribution takes a closer look at the effects on individual relationships and businesses. Against the background of the possible scenarios (British accession to the European Economic Area (EEA), bilateral trade agreement with the EU, or ‘hard’ exit with third-country status), it scrutinizes Brexit’s consequences in five areas: contract law, the law of non-contractual obligations, corporate law, financial law, and international litigation. With regard to contract law, it examines the effects on the determination of the applicable law and on substantive contract law, in particular the possibility to terminate contractual agreements. Concerning non-contractual obligations, it deals with the conflict rules applicable to torts, which may change. In the context of corporate law, the focus is on the status of companies organized under English law that are domiciled in Member States, as well as on the fate of European public companies headquartered in Britain. Insolvency matters will also be discussed. The part on financial law analyses the options for EU market access available to English banks, asset and fund managers as well as insurance companies in light of the passport granted to EEA firms and the equivalence requirements for third-country firms. As regards international litigation, the discussion turns on the post-Brexit determination of the competent court as well as the recognition and enforcement of British judgements in the EU.