The EU’s negotiator-in-chief on Brexit, Michel Barnier, considers that the post-Brexit transition period should be short and limited in time. Therefore, its end will be set for 31 December 2020, he said when presenting the draft negotiation directives on Wednesday 20 December.
This proposal trims three months off the one proposed by the British Prime Minister, Theresa May, who spoke of a period of around two years after the United Kingdom leaves the EU, which is scheduled to happen at the end of March 2019.
Following the orientations agreed upon by the European Council on Friday 15 December, on the progress made in the first phase of Brexit negotiations (see EUROPE 11927), Barnier presented the College of Commissioners with his draft negotiation directives for the transition phase on Wednesday. He then presented them to the ambassadors of the member states to the EU (Coreper).
The chief negotiator told the press that the transition phase option already featured in the orientations of the Council of 29 April 2017 (link: http://bit.ly/2kT15dg ), and was officially requested by May in her speech in Florence (see EUROPE 11868). This phase will be useful and will allow the British government to prepare, for instance to avoid disorder on the borders and then to prepare for other challenges, he stressed.
Among these challenges, the senior politician referred to those related to the withdrawal of the UK from Euratom, the European Atomic Energy Community, and the need to give European and British companies enough time to adapt by ensuring a stable regulatory framework and avoid two adjustments in a row - a concern that has been voiced by the British Chamber of Commerce (see EUROPE 11928).
However, the negotiator stressed that he wanted a slightly shorter transition period than that suggested by the British: “in her Florence speech, Theresa May spoke of a maximum period of two years. From our point of view, and this is the opinion of the European Commission, the logical end of this period should be 31 December 2020”.
This date corresponds to the end of the multi-annual financial framework 2014-2020. The transition period will therefore be 21 months long (as it will begin on 30 March 2019) rather than 24 months, as May called for.
5 major principles. Barnier went on to list five major principles that will inform the negotiations on the transition period: - 1) the integrity of the single market: any transition will include all of the economic sectors covered by the single market and the four associated freedoms (freedom of movement of goods, capital, services and persons); - 2) the integrity of customs union: the common customs tariff must continue to apply for the entire transition period, along with the border controls for products from third countries; - 3) the implementation of all new EU rules adopted during the transition period, “under the control of the European agencies, the Commission and the Court of Justice of the EU”; - 4) the rejection of any form of “à la carte transition”: the regulatory framework and all European polities will remain binding upon the United Kingdom; - 5) respect for the EU’s decision-making autonomy: “the United Kingdom will become a third country on the morning of 30 March 2019 and will no longer participate in the EU institutions”.
However, he said that the UK could in future still attend certain meetings in comitology, referring to the example of the common fisheries policy.
No transition agreement without agreement on orderly withdrawal. Barnier explained that under article 50 of the EU Treaty, there can be no agreement on the transition period if there is no agreement on the withdrawal treaty, according to the joint report between the EU and the UK of 8 December (see EUROPE 11921) on which “there can be no going back” (see EUROPE 11924).
This means that the content of the agreement on the withdrawal conditions and transition period will have to be adopted in October 2018. The Council, European Parliament and British authorities will then have until February 2019 to take position.
Bilateral political statement on future relationship. On top of an agreement on the withdrawal and transition period, Barnier explained that he wanted a political document that will clearly and unambiguously define the outlines of the future relationship between the EU and the UK. The aim is to allow both sides to know how the future will look.
The EU negotiator explained that by taking account of the British red lines, the only possible option was a free-trade agreement on the model concluded with Canada, South Korea and, most recently, Japan. Negotiations on future relations will start once the EU has clarified its intentions and the Twenty-Seven have adopted new specific orientations, which they are expected to do in March of next year.
Barnier also stressed that the partnership between the EU and the UK will not stop at economic matters, but will also cover legal cooperation, aviation cooperation and bilateral cooperation in matters of security, defence and foreign policy.
The draft negotiation directives on the transition phase is expected to be adopted as the ‘General Affairs’ Council of 29 January of next year. (Original version in French by Pascal Hansens)