Background

• Brexit (“British exit”) refers to the United Kingdom’s decision in a 2016 referendum to leave the European Union (EU), which is a group of 27 countries that operates as a cohesive economic and political block.
• The process of leaving the EU formally began in 2017, when the former British Prime Minister Theresa May triggered Article 50 of the Lisbon Treaty (which gives any EU member state the right to quit unilaterally, and outlines the procedure for doing so).
• In January 2020, the process completed and Britain exited the EU and an 11-month transition period has started which ends on December 31, 2020. 

What changes during the period and what remains the same?

Out of EU politics

• With Brexit Day, the United Kingdom leaves all of the European Union’s political institutions. The UK had 73 Members of European Parliament, and they automatically lost their seats.

EU rules apply

• During the transition period, the UK will continue to obey EU rules and make payments to the EU. If it is involved in a legal dispute with an EU member country, the European Court of Justice will continue to have the final say.

New trade equations

• Out of the EU, Britain will have to build new trade relationships with countries outside the Union.

Freedom of movement 

• During the transition, UK nationals will continue to be able to live and work in European Union countries. EU nationals who want to live and work in the UK, too, can do so.

EU Budget

• The UK will for now continue to contribute to the EU Budget. Existing schemes that are funded by EU grants will continue to be funded.

Why in News?

• German Chancellor Angela Merkel said that Britain will have to accept the consequences of having weaker economic ties with the European Union because of Brexit.

https://www.thehindu.com/news/international/uk-must-accept-weaker-economic-ties-with-eu/article31934968.ece