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EU leaders agree to move to second-stage Brexit talks - Politics Live EU leaders agree to move to second-stage Brexit talks - Politics Live
(35 minutes later)
Meanwhile, the prime minister’s chief of staff, Gavin Barwell, provides a textbook example of trying to please everyone at once:
PM's chief of staff commenting on deal here https://t.co/J5qmCNsh5U
And here - this is how No 10 is trying to sell the deal to both sides of the public, as well as the two halves of the Tory party https://t.co/p7Lf4zNbls
Speaking in her Maidenhead constituency, Theresa May told reporters:
This is an important step on the road to delivering the smooth and orderly Brexit that people voted for in June of last year. The UK and the EU have shown what can be achieved by commitment and perseverance on both sides.
I am pleased that it has been agreed that we should make rapid progress on an implementation period, which will give certainty to businesses and to individuals. There is still more to do but we are well on the road to delivering a Brexit that will make Britain strong, prosperous and secure.
While the EU negotiating guidelines make clear that there will essentially be full membership for the two year transition period, up to 2021, including adherence to EU law and the four freedoms, May insisted this did not have the effect of pushing back the exit date. She said:
We will leave the European Union on the 29th of March 2019.
The prime minister said:
There’s still more to do, but we’re well on the road to achieving the Brexit that the UK voted for
The prime minister has told reporters that phase two Brexit talks will start “straight away”, despite Jean-Claude Juncker saying they will commence in March next year.The prime minister has told reporters that phase two Brexit talks will start “straight away”, despite Jean-Claude Juncker saying they will commence in March next year.
EU leaders have give the green light for Brexit negotiations to move to phase two, addressing Britain’s future relationship with the bloc. They ruled that sufficient progress had been made on the opening issues to go forward.EU leaders have give the green light for Brexit negotiations to move to phase two, addressing Britain’s future relationship with the bloc. They ruled that sufficient progress had been made on the opening issues to go forward.
The European Council president, Donald Tusk, congratulated Theresa May but later warned that the second phase talks would be tougher. Tusk said it was “still realistic” to complete phase two Brexit talks by the October deadline but, in comments echoed by Angela Merkel, he told reporters that the next phase would be “more demanding, more challenging”.The European Council president, Donald Tusk, congratulated Theresa May but later warned that the second phase talks would be tougher. Tusk said it was “still realistic” to complete phase two Brexit talks by the October deadline but, in comments echoed by Angela Merkel, he told reporters that the next phase would be “more demanding, more challenging”.
May called the decision “an important step on the road to delivering a smooth and orderly Brexit”. The Brexit secretary David Davis called it a milestone, declaring: “We are ready for the next stage.”May called the decision “an important step on the road to delivering a smooth and orderly Brexit”. The Brexit secretary David Davis called it a milestone, declaring: “We are ready for the next stage.”
The European Commission president, Jean-Claude Juncker, said that the “real negotiations” on the second phase would not begin until March next year. That is the date when the negotiation guidelines say that the framework for trade talks will be issued.The European Commission president, Jean-Claude Juncker, said that the “real negotiations” on the second phase would not begin until March next year. That is the date when the negotiation guidelines say that the framework for trade talks will be issued.
Five leading British business groups welcomed the news but warned that that jobs were at risk unless swift progress was made in the second phase.Five leading British business groups welcomed the news but warned that that jobs were at risk unless swift progress was made in the second phase.
Tusk and Juncker are asked about Brexit again (they are taking question on a range of other issues as well).Tusk and Juncker are asked about Brexit again (they are taking question on a range of other issues as well).
Tusk says:Tusk says:
The second phase will I think be more challenging than the first phase.The second phase will I think be more challenging than the first phase.
Juncker says the draft withdrawal agreement will be drawn up “in the course of the next weeks”. But he adds:Juncker says the draft withdrawal agreement will be drawn up “in the course of the next weeks”. But he adds:
The real negotiations on the second phase will begin in March next year. I cannot say when they will conclude.The real negotiations on the second phase will begin in March next year. I cannot say when they will conclude.
Earlier, Angela Merkel said that the decision to move on to phase two represented “quite significant progress”.Earlier, Angela Merkel said that the decision to move on to phase two represented “quite significant progress”.
The German chancellor said:The German chancellor said:
Phase two may now be ushered in, but obviously that is an even tougher piece of negotiation than we have had up to now.Phase two may now be ushered in, but obviously that is an even tougher piece of negotiation than we have had up to now.
The good news is that all 27 member states so far have put in tremendous efforts, have stood together, and I am very optimistic that we will continue to go forward in quite the same spirit.The good news is that all 27 member states so far have put in tremendous efforts, have stood together, and I am very optimistic that we will continue to go forward in quite the same spirit.
Emmanuel Macron, who appeared alongside Merkel at a joint press conference, said he “fully agreed” with the Chancellor’s comments, adding:Emmanuel Macron, who appeared alongside Merkel at a joint press conference, said he “fully agreed” with the Chancellor’s comments, adding:
We managed to keep the unity of the 27, the integrity of the single market, compliant with our rules.We managed to keep the unity of the 27, the integrity of the single market, compliant with our rules.
In the future we will do what it takes to do the same.In the future we will do what it takes to do the same.
Another quote from Tusk from the press conference in Brussels:Another quote from Tusk from the press conference in Brussels:
At a Brussels press conference, he said:At a Brussels press conference, he said:
As for the framework for future relations, it is now time for internal EU27 preparations and exploratory contacts with the UK to get more clarity on their vision.As for the framework for future relations, it is now time for internal EU27 preparations and exploratory contacts with the UK to get more clarity on their vision.
On that basis, we should adopt guidelines and start negotiations next year.On that basis, we should adopt guidelines and start negotiations next year.
I trust that the unity on the EU side will continue.I trust that the unity on the EU side will continue.
Jean-Claude Juncker essentially echoed Tusk’s comments.Jean-Claude Juncker essentially echoed Tusk’s comments.
He also praised Juri Ratas, the prime minister of Estonia, which currently holds the presidency of the European Union, for maintaining unity in the face of those who he said sought to impose division.He also praised Juri Ratas, the prime minister of Estonia, which currently holds the presidency of the European Union, for maintaining unity in the face of those who he said sought to impose division.
Theresa May was "she was tough, smart, polite and friendly negotiator" says Jean-Claude Juncker. He jokes that he made her come to Brussels 6am London time last Friday as a "sanction" in negotiationsTheresa May was "she was tough, smart, polite and friendly negotiator" says Jean-Claude Juncker. He jokes that he made her come to Brussels 6am London time last Friday as a "sanction" in negotiations
The Donald Tusk and Jean-Claude Juncker press conference has begun.The Donald Tusk and Jean-Claude Juncker press conference has begun.
The European Council president is up first.The European Council president is up first.
Tusk says:Tusk says:
Opening the second phase of negotiations wouldn’t be possible with the unity of the EU27, the hard work of [EU chief negotiator] Michele Barnier and the constructive effort of Theresa May.Opening the second phase of negotiations wouldn’t be possible with the unity of the EU27, the hard work of [EU chief negotiator] Michele Barnier and the constructive effort of Theresa May.
He calls for the unity to be maintained and for “more clarity on their [the UK’s] vision”He calls for the unity to be maintained and for “more clarity on their [the UK’s] vision”
Well-placed MEPs have told the Guardian that despite the drama that has accompanied the first phase of Brexit negotiations, there is an air of inevitability to the way talks are playing out.Well-placed MEPs have told the Guardian that despite the drama that has accompanied the first phase of Brexit negotiations, there is an air of inevitability to the way talks are playing out.
Greek MEP Giorgos Kyrtsos, an avid Brexit watcher who sits on the European Parliament’s economic and monetary affairs committee, said:Greek MEP Giorgos Kyrtsos, an avid Brexit watcher who sits on the European Parliament’s economic and monetary affairs committee, said:
Every party, playing to electorates at home, wants to dramatise the situation. The French want to be seen as a dominant player, the Germans want to be regarded practical, given the lack of government in Berlin but the truth is the EU is not being as tough as it said it would be and Mrs May has survived the ordeal. There is an inevitability to what we are seeing.Every party, playing to electorates at home, wants to dramatise the situation. The French want to be seen as a dominant player, the Germans want to be regarded practical, given the lack of government in Berlin but the truth is the EU is not being as tough as it said it would be and Mrs May has survived the ordeal. There is an inevitability to what we are seeing.
Angela Merkel and Emmanuel Macron are giving a press conference.Angela Merkel and Emmanuel Macron are giving a press conference.
The German chancellor said phase two negotiations on Brexit will be an “even tougher piece of negotiations”.The German chancellor said phase two negotiations on Brexit will be an “even tougher piece of negotiations”.
She praised the “unity” of the 27 member states as did Macron.She praised the “unity” of the 27 member states as did Macron.
He said:He said:
We managed to keep the integrity of the single market and compliance with our rules.We managed to keep the integrity of the single market and compliance with our rules.
Labour MP Chuka Umunna, on behalf of the Open Britain campaign for close ties with the EU, said ministers are now being confronted with the “sheer complexity and monumental costs” of Brexit, and are ill-prepared and have “insufficient time”.
He said:
Contrary to the claims of Brexiters who said that trade talks would begin speedily, we now won’t be able to discuss the future relationship until March at the absolute earliest. And the Cabinet has still yet to even discuss - let alone agree on - what form of relationship it wants the UK and the EU to have.
The clock is ticking, and we are far away from anything resembling a deal. Brexit is intractable and complicated, far more so than people were told at the time of the referendum. Voters have the right to keep an open mind about whether this is really the best future for our country.
Liberal Democrat leader Vince Cable renewed calls for a referendum on the final deal. He said:
Now comes the hard part. The outcome of these talks will affect jobs, living standards and prices for years to come. Yet with just over a year to go, the Cabinet still can’t even agree on what they want the final deal to look like. The people must have a say on the terms of any deal, including the option of an exit from Brexit.
Nigel Farage is predictably angry.
If the trade talks don't start until March then why did @Theresa_May leave Downing Street so early last Friday? We've been taken for mugs, no wonder the EU leaders applauded her last night.
You can read the full guidelines on phase two here (pdf).
Referring to the transition period, it says:
In order to ensure a level playing field based on the same rules applying throughout the Single Market, changes to the acquis adopted by EU institutions, bodies, offices and agencies will have to apply both in the United Kingdom and the EU. All existing Union regulatory, budgetary, supervisory, judiciary and enforcement instruments and structures will also 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-à-vis other third countries.
On the future trading relationship, it adds:
The European Council will continue to follow the negotiations closely and will adopt additional guidelines in March 2018, in particular as regards the framework for the future relationship. It calls on the United Kingdom to provide further clarity on its position on the framework for the future relationship.
It looks like Juncker and Tusk’s press conference has been put back to 12.50pm UK time. Sky News says it is probably running late because Juncker is on the phone to May.
It will be livestreamed here.
The secretary of state for exiting the European Union is happy:
Today is a good day for Brexit and an important step for Britain. Thanks to hard work and determination, we have reached an important milestone and have achieved #sufficientprogress. There is still lots of work to come but we are ready for the next stage.
Leo Varadkar has admitted that the hard work is still to come on the Irish border deal.
The prime minister of Ireland, who threatened to veto today’s deal if he didn’t get what he ultimately described as a “bullet proof” guarantee on the Irish border, told reporters “there was a lot of thinking to be done about that” once phase two negotiations get underway.
The Irish border deal calls for the UK to come up with a “bespoke solution” for the border if the wider UK-EU deal doesn’t resolve the problem of how to keep “full alignment” in regulation north and south of the border. Varadkar said:
From an Irish point of view we’d like to look like as near as the current relationship as possible, but that wouldn’t necessarily be the view of everyone.
The pound has dropped back after its early gains despite the agreement to move Brexit talks on to the second phase. It is now down 0.26% against the dollar at $1.3394, its low of the day. Against the euro it has dropped 0.39% to €1.1350.Sterling has been unsettled by comments from EC president Jean-Claude Juncker about the difficulties ahead.
William Anderson Jones, head of UK corporate dealing at foreign exchange specialist RationalFX, said:
The pound slipped against its major peers as [Juncker] warned that phase two of talks, focused around trade, would be even more difficult.
Positive sentiments from EU leaders suggest that the talks will continue to advance to the much desired trade and transition talks, but all echo Juncker’s warning over the difficulty of talks to come.
The prime minister has responded on Twitter to the decision taken at the EU summit:
Thank you to Presidents @JunckerEU and @donaldtusk. Today is an important step on the road to delivering a smooth and orderly Brexit and forging our deep and special future partnership. https://t.co/PSaATiA17n
Five business groups - the British Chambers of Commerce (BCC), Confederation of British Industry (CBI), EEF (manufacturers’ organisation), Federation of Small Businesses (FSB) and Institute of Directors (IOD) - have jointly welcomed the progression to phase two of Brexit talks. But they said much more work was needed.
We welcome the fact that the European Council has approved the progression of talks to the discussion of a transition period, and a future trade relationship.
It is our collective view that the transition period must now be agreed as soon as possible, to give businesses in every region and nation of the UK time to prepare for the future relationship. Further delays to discussions on an EU-UK trade deal could have damaging consequences for business investment and trade, as firms in 2018 review their investment plans and strategies.
While our members will be particularly pleased that EU citizens currently living and working in the UK now have more clarity, it’s still essential that an unequivocal commitment on their future rights is made whatever the outcome of negotiations.
We will continue to work with the government to ensure that UK firms can overcome the challenges and take advantage of the opportunities that a new trading relationship with the EU and the rest of the world will bring.
The EU has issued negotiating guidelines for phase two of the Brexit talks, which essentially say there will be full membership until the end of the transition period.
EU says all EU Law will apply until end of transition, assumed to be 2021, and we have to stick with all four freedoms, which means EU immigration carries on as is for five years after the referendum https://t.co/e94kyrXjTI
It has also confirmed that guidelines for trade talks will not be issued until March.
EU confirms guidlines for framework trade talks won't be issued until March. Until then the negotiations will be about the transition period. Says before March it needs more info from UK about what sort of relationship it wants.