Brexit Jargon Buster

Glossary of terms used in relation to Brexit

Terms

Explanation

29 March 2019

The date on which the UK's two years' notice under Article 50 of the EU Treaty expires and on which the UK's membership of the EU will cease.

Article 50

Article 50 of the Treaty on European Union which was added by the Lisbon Treaty and which for the first time set out an express right and process for a Member State to withdraw from the EU, based on service of two years' notice of withdrawal.

Council of Ministers

The main decision making body, together with the European Parliament, of the EU, comprising ministerial representatives of all of the EU Member States.

Court of Justice of the European Communities

The Court established under the EU Treaties to resolve disputes on EU law between Member States and the EU institutions and between individuals or undertakings and the EU institutions, by means of actions or appeals against acts of the EU institutions and referrals from the courts of Member States for an interpretative ruling on points of EU law. The Court comprises the full Court and also the General Court which is a court of first instance for actions or appeals against EU institutions (but which does not deal with referrals from national courts).

Customs Union

A type of preferential trade agreement between countries; the EU's Customs Union is an area comprising the EU Member States (and also Guernsey, Jersey, the Isle of Man and Monaco) in which no tariffs are imposed internally on imports or exports and all member countries apply a common external tariff on goods imported from outside the Customs Union. Turkey, Andorra and San Marino have bilateral customs unions with the EU (in the case of Turkey and Andorra this excludes agricultural products).

EEA

The European Economic Area, set up in 1994, to extend the EU’s internal market to countries in the EFTA; EU legislation relating to the single market becomes part of the legislation of the EEA countries once they have agreed (through the EFTA Secretariat) to incorporate it.The EEA comprises the 28 EU countries and also three EFTA States, Iceland, Liechtenstein and Norway, in an internal market governed by the EU single market rules. The EEA Agreement allows these three EFTA countries to participate in the EU’s single market.

EFTA

The European Free Trade Association, an intergovernmental organisation working to promote free trade and economic integration for its member states. It was founded in 1960 by Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom, and later joined by Finland, Iceland and Liechtenstein. However, currently there are only four EFTA countries, Iceland, Liechtenstein, Norway and Switzerland, as the other members left at different times in order to join the EU.

EU

The European Union, an economic and political union of 28 countries. It operates an internal (or single) market which allows free movement of goods, capital, services and people between member states; the EU member states are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.

Single Market

The geographical market area established pursuant to the Single European Act, comprising all of the EU Member States and three additional member countries of the EEA, in which goods, services, workers and capital may circulate freely without internal barriers (subject to limited exceptions to cover certain essential requirements) and in accordance with the EU principle of home-state authorisation.

European Communities Act 1972

The primary UK legislation which gave legal effect in the UK to the EU Treaties and EU law and which ensures the supremacy of EU law in relation to domestic law in the UK.

EuroZone

The Euro area comprising the EU Member States (19 of the 28 EU Member States) which have adopted the Euro as their common currency and sole legal tender.

Four Freedoms

In the context of the EU, the freedoms of movement of goods, services, workers and capital between EU member states, without internal barriers (subject to limited exceptions), which arrangements have been extended under the EEA Agreement to cover also Iceland, Liechtenstein and Norway.

EU Withdrawal Act or (in full) the European Union (Withdrawal) Act 2018

The legislation which will repeal the European Communities Act 1972 with effect from the UK's withdrawal from the EU (or, if there is a Withdrawal Agreement, from the end of the transitional period); this legislation will also retain in UK domestic law the existing corpus of EU legislation which has not already been incorporated into domestic UK law, including in particular EU Regulations (which would otherwise no longer be effective when the UK ceases to be an EU member state and EU law no longer applies in the UK) and also statutory instruments adopted under the 1972 Act implementing EU directives (which statutory instruments would otherwise lapse on repeal of the 1972 Act) in order to ensure a functioning statute book following the UK's exit from the EU.

Hard Brexit

A UK withdrawal from the EU without a transitional period of participation in the Single market or Customs Union and without any continuing trading or relationship agreement with the EU (and with no continued membership of the Customs Union).

Lisbon Treaty

The Treaty of Lisbon between the EU Member States which amended the Treaty on European Union, including the insertion of Article 50 concerning a Member State's ability to withdraw from the EU.

Passporting

The exercise of the right of a trader in the EU or EEA to conduct its business in another EU or EEA State based on its home-state authorisation, without requiring further authorisation in the host-state, based on the EU and EEA free movement rules.

Qualified Majority

The weighted voting system used for all but the most sensitive issues by the EU Council of Ministers, involving a 55% majority or (in some cases) 72% majority of Member States representing 65% of the EU population.

Soft Brexit

A UK withdrawal from the EU whereby the UK benefits from a transitional period of participation in the EU Single Market or the Customs Union and/or retains a continuing trading or relationship agreement with the EU.

WTO

The World Trade Organisation, a global, multilateral, inter-governmental agreement on trade in goods and certain services based mainly on the principles of national treatment and most favoured nation treatment.

 
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