UK-EU Cooperation: Anatomy of Dynamic Alignment

This contribution is part of a IEP project focusing on the future of UK- EU relations and follows from earlier papers (published here and here). 

The partnership with the UK, whilst always important in its own right, has become of paramount importance given the geopolitical challenges faced by teh European continent as whole. 

In this paper the authors focus on so calle dynamic allignement, i.e. the process by which legislation of a third country trails EU legislation, a pre-condition for accessing the internal market in specific fields. 

In order to ensure the constituional and political viability of dynamic allignement in the UK (and hence its feasibility in the agreement) the authors suggest a role for the UK in decision shaping and urge for a greater degree of flexibility from the EU's side.  

Executive Summary

Dynamic alignment with relevant EU rules is a condition of UK access to three areas of the EU internal market, as envisaged in the “Common Understanding” that was agreed with the EU in May 2025.

These are the electricity market, a sanitary and phytosanitary (SPS) area to facilitate the movement of agri-food products, and emissions trading, here referred to collectively as “the dynamic alignment areas”.

UK law will be required to continue to comply fully with the EU law applicable in those areas, as it develops.

The paper draws lessons from the existing models of dynamic alignment under the EEA Agreement and the agreements governing relations between the EU and Switzerland, in particular the recently signed EU/Swiss package, which includes a food safety protocol and an electricity agreement.

The UK seems likely to follow the Swiss model of including a separate set of provisions on dynamic alignment in each of the agreements governing EU/UK cooperation in the three dynamic alignment areas (“governing agreements”).

“Decision-shaping” is the process that enables a non-EU Member State like the UK to avoid being a “rule-taker” pure and simple, by providing an opportunity to influence the development of EU legislation that will apply to it.

The paper considers, in the light of EEA and Swiss experience, how well the process works and how the UK could get the most out of it.

The incorporation of EU acts into the law of the third country concerned necessitates an assessment of the relevance of draft legislation to the dynamic alignment areas covered by its agreement(s) with the EU, a process which, the EEA experience shows, leaves room for genuine disagreements.

The established incorporation technique, which will presumably be adopted with respect to the UK, is for the relevant EU acts to be listed in an annex to each governing agreement, with a power to amend the annex when an existing act is amended or repealed or new legislation is adopted.

A question to be decided is whether the listing of an EU act in the annex to a governing agreement should have the automatic effect of integrating the act into UK law; or whether incorporation should require UK legislation.

The choice made will have an impact on the scope for Parliamentary scrutiny of the process.

The 2025 Common Understanding envisages an arbitration-based dispute settlement mechanism, which must ensure the ultimate authority of the CJEU on all questions of EU law.

The paper examines arrangements under the EU/Swiss package as a possible model for the UK, concluding that a similar mechanism would preserve the international law character of the relationship between the UK and the EU.

Finally, the paper looks ahead to the possibility of more direct involvement of the UK, as well as of the EEA and Switzerland, in the decision-making processes of the EU.

IEP@BU does not express opinions of its own. The opinions expressed in this publication are those of the authors. Any errors or omissions are the responsibility of the authors.

If you want to stay up-to-date with the initiative of the Institute for European Policymaking@Bocconi University, subscribe to our monthly NEWSLETTER here.