(Bloomberg) -- The European Commission will on Thursday send a “letter of formal notice” to the U.K. for breaching the terms of the Withdrawal Agreement, a person familiar with the matter said.
The letter is the first step in a a legal process that could result in a lawsuit at the European Court of Justice. European Commission president Ursula von der Leyen will announce the plan at 11 a.m. in Brussels.
The pound dropped by 0.5% against the dollar on the news. For now, the move signals tensions are high as Brexit trade negotiations enter a critical phase.
(Corrects spelling of EU Commission president in second paragraph.)
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