The EU27 adopted guidelines on Friday 15 December making it possible to move to the second phase of negotiations on the United Kingdom’s withdrawal from the EU.
In a session lasting less than half an hour which didn’t lead to any disagreements and stuck to the agreed lines, according to a European source, the member states agreed that the negotiations had made sufficient progress in the first phase on citizens’ rights, the financial settlement and the border between Ireland and Northern Ireland for them to be able to authorise the opening of discussions on the transition period sought by London and on the outlines of the future relationship between the two partners.
“Opening the second phase of our negotiations wouldn’t be possible without the unity of the EU27, the hard work of Michel Barnier and the constructive effort of Prime Minister May”, stated European Council President Donald Tusk following the discussions, announcing that informal contacts would be made with the UK as early as January to get tougher clarity the on the kind of trade agreement it wants, even though European leaders will only be able to adopt specific guidelines for these trade talks in March. Tusk also said that he was confident that, in the second phase, the member states would remain united – seen as a bigger ask because of the individual economic interests that potentially come into play.
On Wednesday 20 December, the European Commission will present draft guidelines setting out the terms for this transition period and a draft text beginning the process of making the commitments by Jean-Claude Juncker and Theresa May 18 December on the first phase of the divorce legally binding (see EUROPE 11922).
In their guidelines adopted on Friday, the 27-member states enshrine London’s request for a transition period of about two years. It is on this basis, therefore, that they will work. The EU27 want this period to be as short as possible. In their guidelines, they set out their conditions, indicating that the UK will be a member of the EU but without any institutional representation (no commissioner, no MEPs, no representatives in European agencies, etc. though UK European officials are covered by the first phase agreement and thus will be able to remain in place) or any decision-making power. London will also have to contribute to the European budget and respect the jurisdiction of the Court of Justice.
As for the future trade framework, the 27-member states note in their text that the British government has indicated that it does not want the country to remain in the customs union or the single market. “We have taken a difficult step, a significant step. We have stated a desire to continue in the same way with no separate agendas” with the United Kingdom, commented French President Emmanuel Macron. “The goal is to have very clear conclusions for March which provides Michel Barnier with a very clear mandate to open negotiations on future relations”, he added. In his view, too, it will be necessary to “reconcile two objectives: solidarity with Ireland which has been maintained through phase 1 and the integrity of the single market. We will make sure that these two principles are respected”.
Irish Prime Minister Leo Varadkar said after the summit that there was agreement among the member states on a non-renewable transition period of some two years. The new relationship between the UK and the EU should be settled before the transition phase so that “people know where this transition is leading”, he added, making the point that the final treaty will also be a challenge for the United Kingdom if it is to be a mixed agreement that will need to be ratified both by the EU and by each member state.
For Varadkar, it will also be important in this new phase to make sure that what had been agreed on Ireland is included in the withdrawal agreement. “My goal is simple: it’s just to allow people to live and travel between Ireland and the United Kingdom, to make certain that Brexit does not change this in any way. I am confident with what has been written (in paragraphs 49 and 50 of the joint report of 8 December). We have an agreement with a safety net: in maintaining full of regulatory alignment between Ireland and Northern Ireland”.
“The second phase can be opened. An even more difficult task now faces us”, said German Chancellor Angela Merkel. “So far, the 27 have worked very well together. There has been good agreement. I’m confident that we can continue like this”, she added.
“If we have a transition period, it will be along the lines of the Norwegian situation”, said Italian Prime Minister Paolo Gentiloni. “As for what comes after, I hope it is clear to the United Kingdom that there can be no cherry picking. There is no miracle solution where you can keep what you like and leave what you don’t.”
See the European Council guidelines: http://bit.ly/2zf4Fah (Original version in French by Solenn Paulic with the editorial team)