Eu Laws In The Uk: How Many Apply?

The UK's relationship with the EU has been a complex and highly debated topic for many years, with the country's exit from the union in 2020 raising questions about the continued influence of EU laws. While the UK is no longer a member of the EU, the impact of EU legislation cannot be overlooked, with thousands of EU-derived laws still in effect in the UK.

The UK's exit from the EU, commonly known as Brexit, resulted in significant changes to the country's legal framework. To ensure continuity, the European Union (Withdrawal) Act 2018 created the concept of retained EU law, which encompassed all EU laws applicable in the UK at the end of the transition period on December 31, 2020. These laws were later renamed assimilated law under the Retained EU Law (Revocation and Reform) Act 2023, marking a shift in terminology.

The impact of EU laws on the UK is evident in various sectors, including trade, agriculture, financial services, and the environment. The extent to which these laws continue to shape UK policies and regulations remains a subject of discussion and potential future reforms.

The UK's post-Brexit regulatory sovereignty

Retention of EU Laws

The UK's departure from the EU did not result in a complete removal of EU-derived laws. A significant portion of EU laws were retained to ensure legal continuity and avoid uncertainties for individuals and businesses that relied on specific rights and regulations. These retained EU laws were incorporated into UK domestic legislation under the European Union (Withdrawal) Act 2018, becoming "retained EU law" or "REUL". The REUL encompassed various categories of EU laws, including EU Regulations, Directives,section 2 and 3 of the European Union (Withdrawal) Act 2018 and directly applicable EU Treaty articles.

Modifications to Retained EU Laws

The Retained EU Law (Revocation and Reform) Act 2023 introduced changes to the terminology and interpretation of retained EU laws. The term "retained EU law" was replaced by "assimilated law" to reflect the UK's post-brexit status. Additionally, the Act removed the special features of EU law related to interpretation and application, such as the principle of EU law supremacy and general principles of EU law. This means that UK courts are no longer bound by EU case law and can interpret assimilated laws using domestic law principles.

New Domestic Legislation

Since Brexit, the UK has also introduced new primary legislation to create post-Brexit regimes in certain areas. For example, there are new regimes in agriculture and subsidy control that replace the previously applicable retained EU laws. These new regimes demonstrate the UK's regulatory sovereignty and its ability to diverge from EU laws and create its own regulatory frameworks.

Northern Ireland Protocol

It is important to note that the Northern Ireland Protocol of the Withdrawal Agreement provides for certain aspects of EU law to continue to apply to Northern Ireland. This is due to the unique status of Northern Ireland, which still benefits from free movement of goods with the EU. The Protocol lists specific provisions of EU law that remain applicable, including EU state aid rules, legislation related to goods and customs, and legislation concerning wholesale electricity markets.

Impact and Future Direction

The retention and modification of EU laws, along with the creation of new domestic legislation, have resulted in a complex legal landscape in the UK. The UK's regulatory sovereignty allows for further divergence from EU laws, but there are constraints, including international agreements, logistical challenges, and economic considerations. The UK government has expressed its intention to take advantage of its newfound regulatory freedom, particularly in sectors like financial services regulation. However, the sheer volume of retained EU laws and the need for consultation may slow down the process of divergence.

The Northern Ireland Protocol

The protocol takes into account the unique circumstances on the island of Ireland. It was agreed between the United Kingdom of Great Britain and Northern Ireland (UK) and the European Union (EU) as a stable and lasting solution designed to protect the all-island economy and the Good Friday (Belfast) Agreement in all its dimensions, and to safeguard the integrity of the EU single market.

Under the protocol, Northern Ireland but not the rest of the UK remains in the EU single market for goods, allowing the maintenance of an open border between Northern Ireland and the Republic of Ireland. This open border was a key aspect of the Northern Ireland Peace Process and Good Friday Agreement, which ended the Northern Ireland Conflict. The Protocol instead creates a de facto customs border in the Irish Sea between Northern Ireland and Great Britain.

The Windsor Framework introduced a mechanism called the "Stormont brake", which would let the Northern Ireland Assembly object to new EU rules that would affect Northern Ireland's trade arrangements. It also created two "lanes" for goods arriving in Northern Ireland from Great Britain: a green lane for goods remaining in Northern Ireland and a red lane for goods that may be sent on to the EU. Products going through the green lane do not need checks or additional paperwork, while red lane goods are still subject to checks.

The impact of EU law on UK sectors

The UK's relationship with the EU has been complex and far-reaching, impacting almost every sector in the country. Since the UK joined the European Economic Community (later the European Union) in 1973, EU laws have covered a wide range of areas, including social policies, agriculture, the environment, employment, public health, immigration, consumer protection, energy, transport, security, justice, and culture and tourism.

The UK's exit from the EU, or Brexit, has had, and will continue to have, a significant impact on these sectors. The UK formally left the EU on 31 January 2020, and the transition period ended on 31 December 2020. During this transition, EU law continued to apply in the UK.

One of the most prominent sectors affected by Brexit is the energy sector. The UK's Retained EU Law (Revocation and Reform) Bill, also known as the REUL Bill, has the potential to remove thousands of pieces of legislation, including those related to energy. As of March 2023, 337 pieces of legislation were identified that fell under the scope of the Department for Energy Security and Net Zero (DESNZ), with 97 items related to the electricity, gas, steam, and air conditioning supply sector. This includes legislation for establishing and maintaining network codes, the internal market for electricity, and the submission and publication of data in electricity markets. The potential upheaval caused by the bill is expected to have a destabilizing effect on investment and business planning in the energy sector.

Brexit has also had an impact on employment law in the UK. The UK's agreement with the EU contains a 'non-regression' clause regarding employment law and workers' rights, meaning that the UK agreed not to reduce the level of existing social protection. The Retained EU Law (Revocation and Reform) Act 2023 (RUEL) has been used to shape UK employment law, retaining and adapting some EU employment laws.

The financial services sector is another area that has been influenced by EU regulations. High-profile EU regulations such as the Capital Requirements Regulation (CRR) and Capital Requirements Directive have set out key obligations for EU banks, including implementing Basel III prudential requirements and establishing the passporting regime for banks.

The UK's exit from the EU will likely lead to a major overhaul of the UK's judicial and legal system, as EU law supremacy is repealed. The UK will need to review and revise a substantial number of regulations, which could leave gaps in regulatory law. The process of withdrawing from the EU, as set out in Article 50, allows for a two-year notice period for these negotiations and decisions to be made.

The UK's relationship with the EU going forward

The UK's relationship with the EU has been significantly altered by its departure from the union. The UK's exit from the EU has not, however, resulted in the complete removal of EU-derived law. A significant proportion of EU law has been retained to ensure legislative continuity and to avoid substantial gaps in the UK's legal framework. This body of law is known as 'retained EU law' or 'assimilated law'.

The Retained EU Law (Revocation and Reform) Act 2023 has introduced changes in terminology, replacing the term 'retained EU law' with 'assimilated law' in UK legislation. This new term acknowledges the evolution of the relevant laws within the UK's legal framework and reflects the UK's new status outside of the EU.

Secondly, the extent of the continued application of EU law in the UK will depend on the nature of negotiations with the EU. New trade agreements between the UK and the EU will be influential, and the UK may need to adhere to relevant EU laws despite no longer being a member state. The content of these trade agreements will determine the extent to which the UK continues to implement EU laws.

Thirdly, intense lobbying from interest groups will likely play a significant role in shaping the UK's relationship with the EU. The abolition of certain EU laws in the UK may benefit some groups while disadvantaging others, leading to pressure on politicians and trade negotiators to consider the impact of regulatory changes.

Finally, the UK's divergence from EU laws will also depend on logistical and economic constraints. The sheer volume of retained EU laws, competing demands on parliamentary time, and the need for consultation may slow down the process of regulatory reform. Additionally, divergence from EU laws may bring about additional costs for businesses, and the benefits of such changes would need to outweigh these costs.

In conclusion, the UK's relationship with the EU going forward will be shaped by the terms of their withdrawal and trade agreements, lobbying from interest groups, and the logistical and economic considerations of regulatory reform. The UK's future relationship with the EU will continue to evolve as these factors interact and influence each other.

The legal status of EU law in the UK

The UK is no longer a member of the European Union. However, the influence of EU law on the UK remains complex.

Since the UK joined the European Community (EC) in 1973, EU law has influenced a wide range of areas of UK law. These include trade, agriculture, financial services, the environment, employment, and immigration.

When the UK was an EU member state, some types of EU legislation, such as regulations and decisions, were directly applicable as law. This meant they applied automatically in the UK, under section 2(1) of the European Communities Act 1972, without any further action required by the UK.

Other types of EU legislation, such as directives, were indirectly applicable. This meant that the UK made its own domestic legislation to give these laws force in the UK, often by making statutory instruments.

Following the EU referendum vote on 23 June 2016, the UK government has been in the process of overhauling the EU's influence over UK law. The European Communities Act 1972, which enshrined UK membership of the EU in UK law, was repealed once the UK formally left the EU.

EU law-derived provisions will remain in UK law until reviewed and decisions are made about whether to keep, amend, or repeal them. This process is ongoing, and the UK government has a commitment to creating a pro-business environment with a regulatory framework that supports innovation, investment, and high-quality jobs.

As of 2024, there are 6,735 individual pieces of retained EU law (REUL) that have been identified by UK government departments. These laws were saved to ensure legislative continuity immediately after Brexit. REUL came into effect at the end of the UK's post-Brexit transition period, which ended on 31 December 2020. The primary objective of REUL was to provide legal continuity and certainty.

On 29 June 2023, the Retained EU Law (Revocation and Reform) Bill 2023 received Royal Assent. Under this Act, REUL which had not been revoked by the end of 2023 became "assimilated law". Assimilated law is interpreted differently from REUL and is not interpreted in line with EU principles of interpretation.

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