To secure clear, specific and binding guarantees by autumn 2017 on the rights of the citizens, the financial settlement and the border between the Republic of Ireland and Northern Ireland before authorising any discussion on the future of the relationship between London and the EU: these are the objectives the European Commission has set for the negotiations to open in mid-June with the United Kingdom, outlined by the institution’s negotiator-in-chief, Michel Barnier, on Wednesday 3 May.
The EU negotiator for Brexit presented the draft recommendation to the Council authorising him to open talks with London and which will constitute his mandate. The General Affairs Council of Monday 22 May will approve this mandate and adopt the recommendation.
Barnier stressed that at this stage, the mandate covers only the first phase of the article 50 process: the divorce terms and settling matters related to the citizens, the UK’s financial obligations and the Northern Irish border. Other matters are also covered by the mandate and these negotiating guidelines, such as the administrative procedures and governance details for the withdrawal agreement.
The UK will have to put a lot of energy into these three matters and “thereby increase its chances of reaching an agreement”, said the former Commissioner, reiterating that the aim was to reach a genuinely global agreement. With tension mounting in recent days, partly due to the differing versions that have emerged from the dinner in London on 26 April between the British Prime Minister, Theresa May, and the European Commission (see EUROPE 11779), Barnier hopes that an agreement on the divorce terms can be reached by autumn 2017 so that discussions on the future relationship between London and the EU may begin.
The British government will also have to provide clear and specific commitments on the divorce terms and these talks will not be reopened until the final agreement is reached at the end of the process (theoretically in autumn 2018, to allow the national and European Parliament ratifications by March 2019). “Empty rhetoric” will not be an option, European sources confirm, adding that London will have to take a firm commitment on these divorce terms.
On the rights of citizens, with 3.2 million citizens of the EU27 currently on British soil and 1.2 million British in the rest of the EU, there must be assurances that these will be fully respected as long as the UK is an EU member and even beyond.
Europeans settling in the UK before the date on which the country actually leaves, and their families, will retain their rights as European citizens. Individuals who are not economically active must also see their rights protected. These rights, guaranteed before Brexit, will remain in force for the rest of their lives. This concerns access to the employment market, education, healthcare and the recognition of diplomas and qualifications. In the event of dispute, the European Court of Justice will be called upon to rule, even if the disputes occur after the country has left.
On the finances, Barnier again dismissed the idea that the EU is punishing London. “It’s not a punishment and it’s not a bill”, he stressed, explaining that it is simply about London honouring the commitments it has made and that there is a price to pay for leaving the EU. But the UK will have to wait to find out the grand total, and it will be on the sole basis of the calculation parameters and methodology decided upon that the commitment will be made by autumn.
The Commission’s mandate stipulates what must be included in these calculation parameters. The total will include obligations stemming from the entire time the UK will have been a member of the EU. There will be a single financial settlement covering the obligations under the EU budget and the impact on all bodies or institutions (for instance the EIB and the ECB) of which the country is a member. The settlement will cover commitments to participate in certain financial funds and instruments related to EU policies (such as the European Development Fund and the financial facility to support refugees in Turkey).
The Commission explained that this single financial settlement must be based on the principle that the UK must honour its share of the funding of all the obligations entered into when it was a member of the EU; furthermore, it must fully bear the specific costs related to the withdrawal process, such as transferring agencies or other EU bodies.
The French official declined to be drawn on a specific figure on Wednesday, explaining that this could change as the EU may enter into further commitments before it leaves in 2019. But although the amount may change, the calculation method will not and an agreement in principle on this method must also be made by autumn.
“This money has been pledged to projects throughout Europe, thousands of collective enterprises are working with us. You can only imagine the political and legal issues we would have if these programmes were interrupted”, Barnier said. In fact, the UK could be bound by financial ties until 2023, particularly under the Cohesion Policy, European sources went on to explain.
As for the border between Northern Ireland and the Republic of Ireland, Barnier will be visiting next week, he announced.
A hiking metaphor
Barnier will also be responsible for deciding whether sufficient progress has been made to move to the second stage of the discussions, on the future free-trade agreement requested by London.
This progress report may consist of a clear commitment on which an agreement has been reached regarding the three major subject areas, a clear agreement on the principles, method, reciprocity, non-discrimination and continuation of rights for the citizens. This agreement must be clear and firm and there will be no revisiting the principles, Barnier warned.
The Brexit negotiator also referred to the infamous dinner in London on 26 April. Although the positions on either side are obviously different, Barnier described the atmosphere as cordial. He went on to tell journalists that he and May share a great passion for mountain hiking, on trails that are long and often steep, but from which “you can always see the summit, the destination”. (Original version in French by Solenn Paulic)