The EU could take Britain to the European Court of Justice if it passes a bill to overwrite parts of the Brexit withdrawal agreement, diplomats said Thursday.

Maros Sefcovic, the EU vice president in charge of implementing the divorce, was to hold emergency talks with his UK counterpart Michael Gove later in the day.

But if this "extraordinary meeting" does not resolve Brussels' concerns about the draft bill on Britain's domestic market, the EU could take action -- either using the dispute mechanism under the Withdrawal Agreement to form an arbitration panel or by heading to the ECJ.   

"A breach of the obligations under the Withdrawal Agreement would open the way to the legal remedies," a draft prepared by EU ambassadors and seen by AFP says.

"Once the bill is adopted (as proposed), the Commission may initiate infringement proceedings against the UK for breach of the good faith obligations," it says.

"Even before the bill is adopted, it could be defendable to bring infringement proceedings on the same grounds."

The document admits it is unlikely a case could be brought before the end of the year, when Britain will leave the EU single market and customs union.

But it argues the Withdrawal Agreement provides for a case alleging breaches that took place during the transition to be brought within four years of Britain's departure.   

And if the judgement goes against London, the ECJ would be able to impose "a lump sum or penalty payment" if it fails to return to compliance with the law.

Even if the case is handled by an arbitration panel, this would have powers to impose financial sanctions, and Brussels could be entitled to suspend its own obligations in the Withdrawal Agreement. 

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