As the UK’s two main political parties slug it out ahead of next Thursday’s general election, the EU is quietly finalising its joint position on Brexit.
Although climate change, China, and eurozone reform dominated the agenda this week (see other articles), EU negotiators were working behind the scenes to flesh out two position papers on Brexit, one on citizens’ rights and the other on the financial settlement.
Citizens and money
The papers, tabled by the Commission, contain no surprises.
The EU is demanding lifelong residency rights for people (and their families) living or working in the EU or the UK at the time the UK leaves the bloc. The EU also wants people to be able to ‘acquire’ those rights (that is, to rack up the five years of residency required by UK law for non-EU citizens) during the transition period following the UK’s exit. And the European Court of Justice should have the final say on the enforcement of those rights, the paper says.
Citizens’ rights are a major concern for the EU side, especially newer member states such as Poland, Hungary and Romania. The UK has said it wants a generous deal on citizens’ rights early on, but is not in line with the EU’s 2019 cut-off date, preferring to set it earlier (either on referendum day, 23 June 2016, or the Article 50 trigger date of 29 March 2017).
A position paper on the financial settlement goes into much more detail, setting out the UK’s obligations to pay its share of previous EU budgets, the current 2014-20 budget, pension costs, contingent liabilities (such as EU borrowing to finance national bailout programmes) and ‘specific costs related to the withdrawal process’ (such as the cost of terminating the lease for the London-based EU medicines agency).
According to that document, the UK would be reimbursed for the UK’s contributions to the European Central Bank’s paid-in capital, but it would have to keep on funding outstanding projects by the European Investment Bank, European Development Fund and the Turkey refugee facility.
Money is the issue that could scupper the talks early on, with UK prime minister Theresa May going back to her position that ‘no deal is better than a bad deal’. Some EU member states, such as Ireland, Denmark and the Netherlands, are keen not to push the UK too hard on this point so they can start negotiations on a post-Brexit trade deal as soon as possible.
United front
So far, the EU’s united front on Brexit is holding firm.
Officials who participated in the Council working party’s talks this week - regular meetings of which are to take place every Tuesday and Thursday from now on - say few changes were made to the two position papers beyond linguistic clarifications. Officials broke off for a seminar on Tuesday to discuss the effects of Brexit on international bodies and agreements such as the Paris climate accord and the World Trade Organisation.
A further meeting next Thursday, the day of the UK election, will tie up the loose ends on citizens and money, and the Commission will table further position papers - on Ireland, the European Court of Justice, or the transit of goods, for example - as talks progress.
But that unity could be shaken once talks with the UK begin on 19 June, with many officials apprehensive about what approach the British will take. There are also concerns - however adamant the EU is about maintaining ‘business as usual’ on its legislative programme - that Brexit will divert attention from the EU’s regular work.
Billionaire investor George Soros, speaking at the Brussels Economic Forum this week, put it dramatically. "Brexit will be an immensely damaging process, harmful to both sides,” Mr Soros said. "Most of the damage is felt right now, when the European Union is in an existential crisis, but its attention is diverted to negotiating the separation from Britain."
However, officials expect no major developments on Brexit until a second round of talks in July. Negotiations will then continue into the summer, with the aim of winding up the first phase of talks - as long as there is ‘significant progress’ - by the end of the year. (Sarah Collins)