Leaving the European Union: The Article 50 TEU process

According with the European Law, any Member State can choose to leave the EU. The Government paper "The process for withdrawing from the European Union" sets out the process for leaving. The rules for exit are set out in Article 50 of the Treaty on European Union. This is the only lawful route available to withdraw from the EU.

   However, the process is unprecedented. No country has ever used Article 50, neither Greece or Spain, nor Portugal or Cyprus. There is a great deal of uncertainty about how it will work on the Britain's decision for Brexit. It is a complex negotiation requiring the involvement of all the EU Member States and the European Commission.

   During the negotiating period it could have an impact on financial markets, investments, and the value of the pound and euro currency. A withdrawal from the EU decision would mean unravelling all the rights and obligations (from access to the Single Market, to structural funds for poorer regions, etc.). However, there are always options for new partnership deals. UK also negotiates its post-exit arrangements with the EU.

   But, as the British government already stated, the complexity of the negotiations, and the need for the UK to negotiate adequate access to the Single Market after it leaves the EU, makes it difficult to complete a successful negotiation before the two-year deadline expired. The replacement deal is needed to agree on a massive amount of trade issues, between the withdrawal country and the EU.

   The final agreement would need to be agreed by both parties: the EU side and the departing Member State. On the EU side, this would require an enhanced qualified majority among the remaining Member States. This means that no single Member State could veto the deal, but that it would need to reach a critical level of support. Specifically, it would need to be agreed by 20 out of 27 Member States, representing 65 per cent of the population.

   Article 50 mentions on paragraph one, that any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements. A Member State which decides to withdraw shall notify the European Council of its intention. In the light of the guidelines provided by the European Council, the Union shall

negotiate and conclude an agreement with that State, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union. That agreement shall be concluded on behalf of the Union by the Council, acting by a qualified majority, after obtaining the consent of the European Parliament.

   The above steps are required to withdraw participation to European Union. But what if the country decides to rejoin the EU in the future? If a State which has withdrawn from the Union asks to rejoin, its request shall be subject to the procedure referred to in Article 49. That means that it must do a lot more effort, because there will be new requirements, according with the ongoing financial and social dimensions.