Theresa May has welcomed the European Council’s agreement to give the green light for Brexit talks to move on to their second phase, dealing with the transition to a new relationship after the UK’s withdrawal.
The momentous step was agreed in a meeting of the leaders of the 27 remaining EU states lasting less than half an hour in Brussels in the Prime Minister’s absence.
Guidelines agreed at the European Council summit revealed that the EU expects Britain to remain under the jurisdiction of the European Court of Justice and permit freedom of movement during a transition period expected to last two years after the official date of Brexit in March 2019.
(PA Graphics)
European Council president Donald Tusk announced the decision on Twitter: “EU leaders agree to move on to the second phase of #Brexit talks. Congratulations PM @theresa_may.”
And Mrs May responded by thanking Mr Tusk and European Commission president Jean-Claude Juncker, adding: “Today is an important step on the road to delivering a smooth and orderly Brexit and forging our deep and special future partnership.”
Mrs May left the two-day summit early after winning applause from the other leaders as she assured them on Thursday evening of her determination to see Brexit through despite this week’s defeat in the House of Commons.
The EU position set out in the guidelines makes clear that any transition period agreed by Brussels “must be in the interest of the Union, clearly defined and precisely limited in time”.
Under the proposals, the UK will be required to follow the EU rulebook in its entirety – including laws adopted during the transition period – while playing no part in the decision-making processes of the European institutions.
And the guidelines make clear that Britain will be expected to observe the single market’s “four freedoms” of movement of goods, services, people and capital during the period, expected to begin on March 29 2019.
During the transition, the guidelines state, “all existing Union regulatory, budgetary, supervisory, judiciary and enforcement instruments and structures will … apply, including the competence of the Court of Justice of the European Union.
“As the United Kingdom will continue to participate in the Customs Union and the Single Market (with all four freedoms) during the transition, it will have to continue to comply with EU trade policy, to apply EU customs tariff and collect EU customs duties, and to ensure all EU checks are being performed on the border vis-a-vis other third countries.”
The four-page guidelines pour cold water on Brexiteers’ hopes of a swift movement to detailed negotiations on a free trade agreement with the EU.
They confirm that agreement on a future trade relationship can only be finalised once the UK has formally left the EU.
And they state that the EU is currently ready only to engage in “preliminary and preparatory discussions with the aim of identifying an overall understanding of the framework for the future relationship” after additional guidelines have been adopted at a future summit in March.
In a key passage hinting at the obstacles which lie ahead of a trade deal, the document notes that the UK has expressed its desire to leave the single market and customs union, and that the EU will therefore have to “calibrate” its approach on trade and economic co-operation to “ensure a balance of rights and obligations, preserve a level playing field, avoid upsetting existing relations with other third countries, and … preserve the integrity and proper functioning of the Single Market”.
The European Council confirmed its readiness to maintain co-operation with the post-Brexit UK in the fight against terrorism and international crime, as well as security, defence and foreign policy.