The EU Parliament intends to keep Britain in key European institutions as part of a transitional deal

LONDON — The European Parliament will demand that Britain continues to participate in key European Union institutions as part of any transitional deal, according to draft legislation seen by the Financial Times.

The documents indicate that the parliament will make several uncompromising demands as part of negotiations, including:

• That the European Court of Justice (ECJ) has full oversight of any transition deal;

• That Britain “fulfil all its commitments” to the EU budget during a transition phase;

• That Britain strictly observes EU tax standards during the transition process.

Prime Minister Theresa May has indicated that she favours a transitional deal to help British business avoid a “cliff edge” after Brexit until formal trade deals are ratified.

However, the documents raise the possibility that Britain will continue participating in key EU institutions as part of any such deal — something Prime Minister Theresa May would likely oppose.

She has previously pledged to “bring an end to the jurisdiction of the European Court of Justice in Britain” and said that “we will not have truly left the European Union if we are not in control of our own laws.”

The submissions for the legislation come from the parliament’s powerful economic and monetary affairs committee’s suggestions, and have been agreed by a cross-party group of senior MEPs.

The parliament ultimately has the power to veto any exit deal for Britain that it does not regard as favourable.

MEPs are reportedly expected to pass the resolution in early April, only days after Britain is scheduled to trigger Article 50.

The legislation also says that MEPs should prepare for a “no deal” scenario, widely regarded as the worst possible outcome for Britain. It says that a transitional deal is favourable because it would help to “avoid disruption in financial markets” but says “the possibility of no agreement cannot be excluded.”

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