EU Tries to Bind U.K. With Strict State Aid, Tax Standards (1)

The European Commission wants to bind the U.K. to strict state-aid and tax rules in the post-Brexit era, calling for the EU to be handed special rapid-response powers if it thinks Britain unfairly upends fair competition.

The European Union should “have the possibility to apply autonomous interim measures to react quickly to disruptions of the equal conditions of competition,” the commission said a draft negotiating mandate for a deal between the U.K. and the now 27-nation EU. The Brussels-based authority didn’t spell out what potential sanctions might be.

In a bid to avoid unfair competition from a potentially more interventionist ...