The UK referendum has voted 52 percent to 48 percent to leave
the European Union. This is the first time in the history of the
European Union that a Member State has voted to withdraw from the
trading bloc. What happens next?
The UK and the rest of Europe face a prolonged period of
uncertainty. The referendum result is not binding on the UK
Parliament, which still needs to decide whether, when and how to
implement the decision. The contingency plans that financial
institutions and other businesses have been making since the
referendum was announced are now being revisited. Whatever lies
ahead, the reality is that it will likely take at least two years
to give effect to the UK's separation from the EU.
The Treaty of Lisbon requires a Member State to give an Article 50
notification of the intention to exit. After notification, a
withdrawal agreement will be negotiated between the EU and the UK.
The treaties of the EU will only cease to be applicable to the UK
from the date of the agreement or, failing that, two years after
the notification or any later date that they agree. During the
negotiation, therefore, the UK will continue to be a full member of
the European Union. The third quarter of 2018 is likely to be the
earliest that the UK would leave.
A separation will require a wholesale review of UK legislation
including in relation to financial regulation, employment,
antitrust, data protection and intellectual property. This will
extend to legislative powers that have been devolved to the
Scottish, Welsh and Northern Ireland assemblies. To complicate
matters, separation will be against the will of the people of
Scotland and Northern Ireland, who voted to remain.
Jones Day will be hosting a teleconference on Wednesday
29 June 2016 at 2.00 pm (London) / 3.00pm (CET) / 9.00 am
(Eastern), during which our lawyers will comment on the key legal
implications of the UK's withdrawal. We will also be monitoring
and commenting on likely changes in legislation as they become
clearer.
Please register for the program using
the link provided here. You will receive a confirmation with the
log-in information and a personal access code.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
