EU to start legal action against UK on Internal Market today

The “letter of formal notice” to the UK for breaching the terms of the Withdrawal Agreement is the first step in a a legal process that could result into a lawsuit at the European Court of Justice.

The European Commission will on Thursday send a “letter of formal notice” to the UK for breaching the terms of the Withdrawal Agreement, a person familiar with the matter says.

European Commission president Ursula von der Layen will announce the plan at 11 a.m. in Brussels. (Reuters file photo)

The letter is the first step in a a legal process that could result into a lawsuit at the European Court of Justice. European Commission president Ursula von der Layen will announce the plan at 11 a.m. in Brussels.

The pound dropped by 0.5% against the dollar on the news. This is on only the first step in what would be a long legal process that could eventually end up at the ECJ. For now it signals tensions are high as Brexit trade negotiations enter a critical phase.