EU seeks compromise with UK to maintain a level playing field

Addressing the European Parliament (16 December), President of the European Commission Ursula von der Leyen said that the issue of level playing field provisions needed to be resolved. She described the issue as ‘very simple’ for the EU, as it is essential to ensure fair competition and therefore robust mechanisms are needed in any future EU-UK agreement. 

The 'architecture' rests on two pillars, state aid and standards. Progress had been made on state aid. The European Commission’s team has agreed with the UK on common principles, guarantees of domestic enforcement and the possibility to autonomously remedy if and when either party diverges. 

On standards, such as those in the areas of labour and the environment, the EU said difficulties remained on how to future proof fair competition, as these requirements change over time. The EU-side proposed what has been called a ‘ratchet clause’, that would have meant the UK would align in some way with EU requirements. The UK has rejected this on the grounds of sovereignty, however other ways of respecting the same objective are being explored.  

Von de Leyen was pleased that progress has been made on governance, describing the issues a ‘largely' being resolved.

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