User:Bklynneurope/Post-Brexit United Kingdom relations with the European Union

European Court of Justice
Following Brexit, decisions of the European Court of Justice and other EU legal mechanisms still apply to and within the UK. For four years after the Brexit transition period, according to Article 27 of the withdrawal agreement, the European Commission can bring infringement actions against the UK for non-compliance. In addition, Article 158 of the withdrawal agreement permits UK courts hearing disputes regarding the rights of EU citizens residing in the UK, as outlined in Part Two of the withdrawal agreement, to submit preliminary references to the ECJ. Preliminary rulings from this procedure would have full legal weight in the UK, just as any other preliminary ruling would in an EU member state.

A prominent example of a post-Brexit case involving the UK at the ECJ was an infringement action brought by the Commission (Commission v. United Kingdom, Case C-516/22). The Commission sought to overturn a UK Supreme Court ruling in the case Micula v. Romania. Ioan and Viorel Micula were two Swedish investors who invested in Romania before the country joined the EU. As part of an investment attraction scheme, investors like the Miculas were promised incentives. However, once Romania joined the European Union, these state incentives were deemed contrary to EU law. The Miculas sought compensation under the ICSID Convention, as Romania reneged on the payout of these incentives. They sued simultaneously in EU member states and the UK. In 2014, the Commission issued a decision (C(2014) 3192), which deemed this type of compensation contrary to EU law. In February 2020, however, the UK Supreme Court found that the Miculas were entitled to compensation. However, the UK Supreme Court did not send a preliminary reference to the ECJ to decide on the compatibility of their ruling with EU law as this case was also pending within the EU legal system. The failure of the UK Supreme Court to submit a preliminary reference prompted the Commission to sue the UK for an infringement action. In March 2024, the ECJ ruled that the UK had "failed to fulfill its obligation" as a member state when awarding compensation in this case. Although this decision is binding according to Article 89 of the withdrawal agreement, it remains to be seen how and if the UK will comply with this decision, especially considering the contemporary hostile attitude towards the ECJ within British politics.