29 January 2018

Main results of the General Affairs Council (Art. 50) of 29 January

Transition period after Brexit: negotiating directives

EU27 ministers adopted a new set of negotiating directives for the Brexit negotiations, which details the EU27 position regarding a transition period. According to the EU position, during the transition period the whole of the EU acquis will continue to apply to the UK as if it were a member state. However, the UK, as already a third country, will no longer participate in the institutions and the decision-making of the EU. These negotiating directives provide the Commission with a mandate, as the EU negotiator, to start discussions with the UK on this matter.

Council (Article 50) adopts negotiating directives on the transition period (press release, 29/01/2018)

State of play of Brexit negotiations 

The Council was informed by chief negotiator Michel Barnier about the state of play of the negotiations with the UK. Michel Barnier updated ministers on the different work strands of this second phase, where the transition and the framework on a future relationship will be discussed while the work on withdrawal issues is completed.

"We are all glad to be able to start discussing the transition with the UK. However, we must not lose sight of the so-called "exit matters". It is essential and urgent to complete this work. And of course all the commitments undertaken in December need to be respected in full and translated into legal text. This is essential for negotiations to progress." Bulgarian Deputy Prime Minister Ekaterina Zaharieva

Full press release

European Commission receives mandate to begin negotiations with the United Kingdom on transitional arrangements

These negotiating directives – which supplement the negotiating directives from May 2017 and were based on the Commission's Recommendation of 20 December 2017 – set out additional details on possible transitional arrangements. These include, in particular, the following:

• There will be no "cherry picking": The United Kingdom will continue to participate in the Customs Union and the Single Market (with all four freedoms). The Union acquis will continue to apply in full to and in the United Kingdom as if it were a Member State. As a result, the United Kingdom should remain bound by the obligations stemming from agreements with third countries. Any changes made to the acquis during this time should automatically apply to the United Kingdom.
• 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.
• The United Kingdom will be a third country as of 30 March 2019. It will, therefore, no longer be represented in Union institutions, agencies, bodies and offices.
• The transition period needs to be clearly defined and precisely limited in time. It should not last beyond 31 December 2020. Consequently, the provisions on citizens' rights in the Withdrawal Agreement should apply as of the end of the transition period.

Today's Negotiating Directives also recall the need to translate into legal terms the results of the first phase of the negotiations, as outlined in the Commission's Communication and Joint Report. It underlines that work needs to be completed on all withdrawal issues, including those not yet addressed in the first phase, such as the overall governance of the Withdrawal Agreement and substantive issues such as intellectual property rights, protection of personal data and customs-related matters needed for the UK's orderly withdrawal from the EU. [...]

Full press release

Press statement by Michel Barnier following the General Affairs Council (Article 50) on the adoption of negotiating directives on transitional arrangements

[...]The EU position is very clear: the transition will last for 21 months, until 31 December 2020.

During this limited period of time, the whole EU acquis will continue to apply to the UK. As well as the full EU supervision and enforcement framework, under the jurisdiction of the European Court of Justice.

This will include new EU rules entering into force during this period. For one simple reason: during transition, the UK will continue to take part in the Single Market, the Customs Union and all Union policies. It will continue to have all the economic benefits. Therefore it must also apply all the EU rules. The Single Market cannot be "à la carte".

This will ensure stability for EU citizens in the UK and UK nationals in the EU. Their rights will remain unchanged until 31 December 2020. And we are determined to ensure that those who arrived before this date will benefit from the protection agreed in our Joint Report.

This will also ensure a level playing field and stability for businesses. They will not have to adapt twice. That said, it is high time to start preparing for those who have not done so yet.

However, the UK will no longer be an EU member on 29 March 2019. This will have consequences in terms of institutions and governance. After this date, the UK will no longer participate in the EU decision-making process.

Finally, one word on existing agreements with third countries during the transition:

As part of the transition, the UK will remain bound by the obligations stemming from all existing EU international agreements, for instance on trade and aviation. This is crucial for the good functioning of the Single Market and the Customs Union. And we can agree on this in the Article 50 Agreement between the EU and the UK.

But we cannot ensure in the Article 50 Agreement that the UK keeps the benefits from these international agreements. Our partners around the world may have their own views on this, for instance the 70 countries covered by trade deals. [...]

Full speech

© European Council