17 December 2017

European Council (Art. 50) guidelines for Brexit negotiations

1. The European Council welcomes the progress achieved during the first phase of negotiations as reflected in the Communication from the Commission1 and the Joint Report2 and decides that it is sufficient to move to the second phase related to transition and the framework for the future relationship. It calls on the Union negotiator and the United Kingdom to complete the work on all withdrawal issues, including those not yet addressed in the first phase, in conformity with the European Council guidelines of 29 April 2017, to consolidate the results obtained, and to start drafting the relevant parts of the Withdrawal Agreement. It underlines that negotiations in the second phase can only progress as long as all commitments undertaken during the first phase are respected in full and translated faithfully into legal terms as quickly as possible.

2. In the negotiations during the second phase addressing transitional arrangements as well as the overall understanding on the framework for the future relationship the European Council guidelines of 29 April 2017 continue to apply in their entirety and must be respected.

3. As regards transition, the European Council notes the proposal put forward by the United Kingdom for a transition period of around two years, and agrees to negotiate a transition period covering the whole of the EU acquis, while the United Kingdom, as a third country, will no longer participate in or nominate or elect members of the EU institutions, nor participate in the decision-making of the Union bodies, offices and agencies.

4. Such transitional arrangements, which will be part of the Withdrawal Agreement, must be in the interest of the Union, clearly defined and precisely limited in time. 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.

5. The European Council calls on the Commission to put forward appropriate recommendations to this effect, and on the Council to adopt additional negotiating directives on transitional arrangements in January 2018.

6. The European Council reconfirms its desire to establish a close partnership between the Union and the United Kingdom. While an agreement on a future relationship can only be finalised and concluded once the United Kingdom has become a third country, the Union will be ready to engage in preliminary and preparatory discussions with the aim of identifying an overall understanding of the framework for the future relationship, once additional guidelines have been adopted to this effect. Such an understanding should be elaborated in a political declaration accompanying and referred to in the Withdrawal Agreement.

7. The Union takes note that the United Kingdom has stated its intention to no longer participate in the Customs Union and the Single Market after the end of the transition period, and the European Council will calibrate its approach as regards trade and economic cooperation in the light of this position so as to ensure a balance of rights and obligations, preserve a level playing field, avoid upsetting existing relations with other third countries, and to respect all other principles set out in its guidelines of 29 April 2017, in particular the need to preserve the integrity and proper functioning of the Single Market.

8. The European Council reconfirms its readiness to establish partnerships in areas unrelated to trade and economic cooperation, in particular the fight against terrorism and international crime, as well as security, defence and foreign policy.

9. 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. [...]

Full guidelines

Remarks by President Donald Tusk following the European Council meetings on 14 and 15 December 2017

[...]This morning we discussed Euro area reform. The summit participants agreed with my proposal that in the next 6 months, the work of our finance ministers should concentrate on areas where the convergence of views is the greatest. Progressing step-by-step on issues such as the completion of the Banking Union, and the transformation of the ESM into the so-called European Monetary Fund, should significantly strengthen the resilience of the EMU. Discussions will continue also on other ideas, which need more time to mature, and have a longer term perspective. I will call the next Euro summit already in March to continue this discussion. And June could be the moment for us to take the first decisions.

Finally, on Brexit. 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. 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. I trust that the unity on the EU side will continue. How important this unity is, I have seen on many occasions, for example in the context of the European Investment Bank, where the EU is committed to preserving the financing activity of the EIB Group and its business model throughout and after Brexit. I hope this positive attitude will also be reflected in other fields. [...]

Full remarks

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