OK, the inclusion of the words “sex-mad” in that title was merely a desperate scheme1 to try and get you to read an article on a case brought against the UK by the European Commission in the European Court of Justice regarding the Terminal Markets Act 1973. However there really is mention of Nazis, and of the coronavirus, though not of the former being infected by the latter. In fact I would have preferred it if there had been less of the Nazi stuff2: the rather tasteless comparisons to World War II made me inclined to dismiss this “Briefings for Britain” piece on the case from two days ago, but I have a feeling that maybe it ought not to be dismissed.
In it, Caroline Bell writes:
This Thursday, the European Court of Justice delivers its verdict in the European Commission’s infraction proceedings against the United Kingdom for failing to impose VAT on transactions in the City’s multi-trillion-dollar derivatives markets. Launched during the murky days of the Brexit withdrawal negotiations in 2018, this judicial time bomb has the potential to blow up both free trade talks and the Withdrawal Treaty itself if the Court finds against the UK.
Which it did. The judgement issued today can be read here.
Caroline Bell speculates that a decision against the UK might have dramatic consequences:
In terms of trade talks, an adverse judgment would probably mean the City could kiss goodbye to any sort of enhanced equivalence (which Brussels is not willing to grant anyway) and even basic equivalence for financial services could be an issue. But for every blow the EU tries to strike here, the UK is in a position to retaliate much harder against EU financial institutions, so the outcome is again likely to be neutral. Does anyone even expect there to be a financial service agreement with the EU anymore? The EU’s action against the Swiss in this area to try to bring them to heel has badly backfired, and would do so if they applied the same tactics on the UK.
I know that quite a few of our readers work in the legal and financial fields. Is there anything to this story? What effect will the verdict on Case C‑276/19 have?
1I think it was the humourist Alan Coren who said that since the bestseller charts back then in the 70s always seemed to be topped by sex books, WWII books and golf books, his next book ought to be about sex-mad golfing Nazis. Edit: I had misremembered. Alan Peakall and Mr Ed have pointed out the existence of Golfing for Cats, pub. 1976. How many publishers would dare have that cover today?
2A wish shared by most of Planet Earth in 1945.