EU Threatens U.K. With Lawsuit Over Free Movement of People

(Bloomberg) -- The European Union threatened the U.K. with a lawsuit over what it called breaches of rules on the free movement of people in a move that underscores how Britain remains tied to the bloc’s rules despite leaving four months ago.

The European Commission said the U.K. had failed to notify the EU about recent legislative changes restricting free movement, according to a statement Thursday. The decisions include Britain’s imposition of lifetime bans on re-entry for people it had deported and others making it harder for EU citizens to claim welfare payments, officials said.

The EU executive gave the U.K. four months to rectify its shortcomings. If the U.K. fails to take the necessary measures, the commission said it will move to the next stage of the legal process, which could eventually include fines being levied.

“The rights of EU citizens resident in the U.K. after the end of the transition period, as set out in the Withdrawal Agreement, are built on the rights that they currently enjoy in the U.K. under EU rules,” the commission said.

Since leaving the EU on Jan. 31, the U.K. is in a transition period until the end of 2020 and is still bound by its rules even if it has no say in setting them. The EU can still launch legal proceedings during that time under the terms of the Brexit divorce agreement.

A U.K. spokeswoman said: “We have received the letter, and we are considering it.”

The legal tussle comes as the U.K. and EU try to reach an agreement about their future relationship. But the two sides have made little progress. On Thursday, the U.K. doubled down its red lines, refusing to compromise in areas such as fishing and the role of EU courts. It also warned the EU that it was at risk of failing to fulfill the promises it made in the Withdrawal Agreement to protect the rights of U.K. citizens living in the bloc.

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