EU gives Johnson three weeks to back down on bill

The European Union threatened Boris Johnson with legal action over his plans to tear up parts of the Brexit Withdrawal Agreement, giving the British prime minister three weeks to back down.

The bloc also warned that the U.K.’s plan to rewrite an international treaty is jeopardizing efforts to sign a wide-ranging trade agreement between the two sides. Michel Barnier, the EU’s chief negotiator, told envoys on Wednesday that those negotiations had made no progress. He and his British counterpart are due to wrap a round of talks on Thursday.

Must read: EU Gives Johnson Until End of Month to Back Down on Brexit Law

Key developments

• Johnson’s office says U.K. still committed to getting a trade deal with EU
• The pound extended losses, falling by as much as 1.1% against the dollar
• Former Tory leader criticizes plan as parliamentary opposition grows

The U.K. government published its legal position on its Brexit law-breaking plan, saying its Parliament is sovereign and can pass laws that breach the country’s treaty obligations.

“Parliament would not be acting unconstitutionally in enacting such legislation,” the government said in a statement. “Whether to enact or repeal legislation, and the content of that legislation, is for Parliament and Parliament alone.”

French Foreign Minister Jean-Yves Le Drian told his U.K. counterpart Dominic Raab it would be unacceptable for the U.K. to violate the arrangements in the EU withdrawal agreement.

Le Drian made the comments during a routine visit to London on Thursday, according to a statement from the French Foreign Ministry. The intervention shows the risk of the dispute over Brexit bleeding in to other areas of U.K. diplomacy.

Scots Explore Options to Block Bill (4:15 p.m.)

Scotland will take “all steps” necessary to stop Boris Johnson’s proposed Internal Markets Bill, which the semi-autonomous government says is the biggest threat to devolution since the Edinburgh parliament was created more than 20 years ago.

“The U.K. government plans to sacrifice the future of the union by stealing powers from the devolved administrations,” Mike Russell, Scotland’s constitutional affairs minister and member of the pro-independence Scottish National Party, told lawmakers in the Holyrood parliament on Thursday. “It is an affront to the people of Scotland, Wales and Northern Ireland who have voted in favor of devolution on numerous occasions.”

The Edinburgh-based government “will explore every option to stop the U.K. government enacting a law that presents a clear and present danger to the devolution settlement,” it said.

The EU says, if adopted as proposed, the U.K.’s Internal Market Bill would constitute an “extremely serious violation” of the Withdrawal Agreement.

The bloc gave the U.K. until the end of the month to amend the legislation, and signaled it is prepared to seek financial and other penalties.

“The Withdrawal Agreement contains a number of mechanisms and legal remedies to address violations of the legal obligations contained in the text—which the European Union will not be shy in using,” the bloc said in a statement.

Michael Gove defends the government’s planned law, telling lawmakers that it “makes sure Northern Ireland citizens and businesses have unfettered access to the rest of the U.K.”

U.K. Government officials expect a massive fight to get the Internal Market Bill through Parliament after ministers conceded it breaks international law.

Tory rebels in the House of Commons and wider opposition in the House of Lords are likely to make it tough to get the Bill passed as it stands, according to two officials.

Ministers are aiming to rush the Bill through the Commons in the next two weeks.

Michael Howard, a former leader of the Conservative Party, slammed the government’s plan to break international law, adding to to rebukes from former prime ministers Theresa May and John Major.

“How can we reproach Russia or China or Iran when their conduct falls below internationally accepted standards when we are showing such scant regard for our treaty obligations?” Howard asked in the House of Lords.

Richard Keen, replying for the government, said tensions occasionally arise between domestic and international obligations and that there was precedent for domestic law to prevail. “It will be for parliament to determine whether or not at the end of the day it decides to pass this legislation,” Keen said.

Boris Johnson’s spokesman, James Slack, told reporters the government is still committed to trying to secure a deal with the EU.

“We absolutely remain committed to the Withdrawal Agreement and the implementation of the Northern Ireland protocol,” he said.

The EU’s chief Brexit negotiator, Michel Barnier, told EU ambassadors he’d seen no progress so far this week as he prepared for a critical meeting in London on Thursday.

Barnier gave a downbeat assessment of the state of play at a meeting with EU envoys on Wednesday evening, according to a European official who was briefed on their discussions.

Another person familiar with the process offered a more optimistic view on Thursday suggesting there were signs of movement on fishing quotas and morale was holding up among the negotiating teams.

Irish Prime Minister Micheal Martin told RTE he’s “not optimistic” about reaching trade deal with the U.K., warning that it would be “grossly irresponsible” for Britain to ignore its treaty obligations.