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Brexit: EU poised to take legal action against UK over Northern Ireland

Bloc agrees on need for action after Britain unilaterally extends grace period for checks on goods
The European Union is set to launch a two-pronged legal assault on the UK in the coming days after the British government’s unilateral decision to allow businesses in Northern Ireland more time to adapt to post-Brexit rules.
EU27 ambassadors were briefed on Tuesday on the plans, which are likely to involve initiating a formal “infringement proceeding” that could end up at the European court of justice (ECJ), and triggering the dispute mechanism in the Brexit withdrawal agreement.
The European commission vice-president Maroš Šefčovič told the ambassadors the plans were still being worked on but diplomats said on Wednesday there was full agreement at the meeting that the EU “had to act firmly” and action could begin as early this week.
To avoid a hard border on the island of Ireland, the Northern Ireland protocol, part of the withdrawal agreement, requires checks on goods transiting from Britain to Northern Ireland to make sure they comply with the bloc’s rules.
Some checks have already disrupted supply chains in Northern Ireland, triggering protests from unionist parties, but grace periods – the first of which is due to expire at the end of this month – have so far delayed their full application.
The Northern Ireland secretary, Brandon Lewis, said last week the UK would unilaterally extend the grace periods, arguing that the government had to act to protect the interests of Northern Ireland and keep shelves stocked.
efčovič, the EU’s co-chair of the joint committee overseeing implementation of the withdrawal agreement, subsequently accused the UK of breaching both it and, potentially, international law, as well as a “clear departure” from constructive cooperation.
The commission said it had not been informed of the decision in advance of Lewis informing parliament, and suggested it represented a major blow to trust between the two sides after an already difficult post-Brexit period.
As it did last September when the British government introduced the internal market bill, which it said breached the protocol, the EU is now poised to launch a formal “infringement proceeding” that could ultimately end up before the ECJ.
The commission believes it has established the legal basis for such a step, which would be launched by a formal notice accusing the UK of being in breach of EU law. Britain would have several weeks to respond but could face sanctions or even fines if it did not comply with an ECJ decision.
The commission is also set to send a second letter, this time to the joint committee, accusing the UK of breaching article 167 of the withdrawal agreement, which requires both parties to consult and act in good faith in implementing it, allowing the treaty’s dispute settlement mechanism to be triggered.
The EU’s expected announcement comes amid mounting frustration at what many see as the confrontational stance adopted by Lord Frost, the former UK Brexit negotiator, who has replaced Michael Gove as the UK’s representative on the joint committee.
Frost did not alert Šefčovič that the UK was planning to announce unilateral action last week, and has also upset the bloc with a Sunday newspaper opinion piece urging it to “stop sulking” and get over what he called its “ill will” over the UK’s departure.
The UK has said the EU was informed at an “officials level” and denied breaching international law. A UK government spokesperson said: “These measures are lawful and consistent with a progressive and good-faith implementation of the protocol.”
source: Jon Henley
Levant
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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