What has just happened?
On the 24 July 2019, Boris Johnson became Prime Minster ("PM") of the United Kingdom ("UK"). Mr Johnson has said that if a withdrawal agreement is not concluded between the UK and the European Union ("EU") by 31 October 2019, the UK will leave the EU without a deal. Many people believe it is unlikely that a deal will be concluded by 31 October 2019.
What is a "no-deal" Brexit?
In this update, the term "no-deal Brexit" means a Brexit (i.e. the UK's exit from the EU) where there is no further agreement between the EU and the UK about the terms of the UK's departure. There would be no "mini" deals, transition period or an agreed continuation of the status quo. As a result, the UK and EU would fall back on the current default legal position.
What might the impact be?
The potential consequences of a no deal Brexit are discussed in more detail in this update. In very broad terms, the UK would cease to be part of the EU and would no longer be part of the European Single Market. The EU Single Market (sometimes called the Internal Market or Common Market) promotes the freedom of movement of goods, labour, capital and services. It covers all of the EU Member States and has been extended, with exceptions, to Iceland, Liechtenstein and Norway through the agreement on the European Economic Area (the "EEA"), and to Switzerland through bilateral treaties.
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