EU Approves Directives in Brexit Negotiations

The Council of the European Union's General Affairs Council on Monday approved the European Commission's negotiating directives on the United Kingdom's exit talks.

MOSCOW (Sputnik) — Thus, the European Commission became a single negotiator with a single stance and now has the rights to begin the talks with the United Kingdom.

EU Chief Negotiator for Brexit Michel Barnier stated that he hopes to begin negotiations with the United Kingdom on June 19.

The talks are due to be completed before March 30, 2019. However, the directives allow prolonging the talks if both London and Brussels agree to it.

TWO PHASES

The Council guidelines set out a two-phased approach to the negotiations, with the documents approved on Monday intended for the first phase of the talks. It aims to deals with two main issues, namely citizens’ rights and immediate effects of the Brexit on them, as well as settlement of financial rights and obligations that were undertaken by the United Kingdom as a EU-member state.

Finalization of the agreements on the future relations between Brussels and London is only possible after the Brexit process is completed, but discussion of those future relations may begin during the second phase of the talks.

After both phases of negotiations are complete, the European Union and the United Kingdom will reach a withdrawal agreement, which will finalize Brexit. However, the European Union stressed that as long as the United Kingdom remains in the bloc it is subject to all rights and obligations of a member state.

CITIZENS’ RIGHTS

According to the directives, it will be Brussels’ priority to protect the rights of EU citizens in the United Kingdom and UK citizens in the European Union. The withdrawal agreement must safeguard the rights of such citizens, including the residence right and the right of free movement.

The agreement should also "ensure that any good lawfully placed on the single market on the basis of Union law before the withdrawal date can continue to be made available on the market or put into service after that date" both in the United Kingdom and in the European Union.

FINANCIAL SETTLEMENT

The European Union insists on a single financial settlement which will "ensure that both the Union and the United Kingdom respect the obligations resulting from the whole period of the United Kingdom membership in the Union." Therefore, the directives stressed, it is essential to develop a methodology for the financial settlement during the first phase of the negotiations.

The main part of the EU budget is comprised from the payments of the member states. The annual budget is established on the basis of the seven-year plan (Multiannual Financial Framework, MFF), which is approved by the European Commission, EU member states and the European Parliament. The current MMF, approved in 2014, is in force until 2021.

The directives stated that the financial settlement must cover the United Kingdom’s obligations resulting from the MFFs, as well as "the specific costs related to the withdrawal process such as the relocation of the agencies or other Union bodies." The obligations should be defined in euros, according to the directives.

The withdrawal agreement should therefore include the calculation of all obligations of the United Kingdom and the schedule of payments, the directives said, adding that the "calculated obligations may be subject to limited future technical adjustments."

IRELAND AND OTHER COUNTRIES

The European Union "is committed to continuing to support peace, stability and reconciliation on the island of Ireland," with the directives expressly stating that the talks should "aim to avoid the creation of a hard border on the island of Ireland, while respecting the integrity of the Union legal order."

The agreement should also include provisions regarding the transit of goods through the United Kingdom to and from Ireland.

Additionally, the first phase should include discussion of the possible common approach toward third country partners and international organizations, the directives noted.

Earlier this year the European Union stressed that the Brexit talks will be carried out under the principle that "nothing is agreed until everything is agreed."