EU Commission highlights necessary preparations for end of Brexit transitioning period

14. July 2020

The European Commission has published a communication on July 9th, 2020, in order to highlight the main areas of change in view of the upcoming end of the transitional Brexit period before January 1st, 2021.

The communication aims to facilitate readiness and preparations for citizens, businesses and stockholders once the UK leaves the European Union. The European Commission states that readiness for these broad and far reaching changes is key, especially since they will take place regardless of the outcome of the negotiations between the UK and the EU.

The communication breaches subjects such as trade in goods, trade in services, energy, travelling and tourism, mobility and social security coordination, company law and civil law, intellectual property, data transfers and protection and international agreements of the EU.

The communication also includes advice in each of those areas and subjects for businesses to be able to start preparations in order to cope with the changes ahead.

With a view on data protection, the European Commission’s communication states that data transfers can continue after January 1st, 2021, however they will have to comply with EU rules and regulations for Third Country Transfers as put forth by the General Data Protection Regulation (GDPR). The Commission specifies the tools set out in Chapter V of the GDPR, which include Binding Corporate Rules, Standard Contractual Clauses, as well as an Adequacy Decision by the European Commission. The communication states that the EU will try its best to conclude the assessment of the UK regime by the end of 2020, in order to give at least some form of security for data transfers after the transitional period ends. On sides of the United Kingdom, the Adequacy of the European union is guaranteed until 2024.

The advice of the European Commission emphasizes compliancy with the GDPR as the best preparation for the Brexit, but lacks security as to what will happen on January 1st, 2021, especially with regards to the future applicable laws.