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Britain and EU clinch deal to move Brexit forward

PM May, speaking in Brussels, said the deal opened the way for talks that would bring certainty to Britain's future after quitting the EU

Reuters  |  Brussels/ London 

, European Commission President Jean-Claude Juncker

and the struck a divorce deal on Friday that paves the way for talks on trade, easing pressure on Prime Minister and boosting hopes of an orderly The said "sufficient progress" had been made after London, Dublin and Belfast worked through the night to break an impasse over the status of the that had scuppered an attempt to clinch a deal on Monday. PM May, speaking in Brussels, said the deal opened the way for talks that would bring certainty to Britain's future after quitting the European Council President Donald Tusk cautioned, though, that while breaking up was hard, building a new relationship would be even harder. "So much time has been devoted to the easier part of the task," Tusk said. "And now, to negotiate a transition arrangement and the framework for our future relationship, we have de facto less than a year." One senior banker said the deal signalled was heading towards a much closer post-relationship with the than many had feared, indicating that trade will keep flowing between the world's biggest trading bloc and its sixth-largest national economy. The Commission gave its verdict in a statement after May took an early-morning flight to Brussels to announce the deal alongside Commission President Jean-Claude Juncker at a news conference just after 0730 local time. Sterling climbed to a six-month high against the euro on Friday, with one euro worth 86.9 pence, and bond yields across the euro zone rising in early Friday trade. Against the US dollar the pound hovered near a four-day high against a backdrop of broader dollar strength. Moving to talks about trade and a transition was crucial for the future of May's premiership which was thrown into doubt when she lost her party its majority in a snap election in June. Pro-Conservative lawmakers rallied around her after the deal, a possible signal that the party — which has been split over membership for generations — was not preparing to ditch her immediately. British Foreign Secretary Boris Johnson, who spearheaded the campaign, congratulated May, adding that would now take back control of its laws, money and borders. Cabinet minister Michael Gove, another prominent campaigner, called it a "significant personal political achievement", and Suella Fernandes, head of an influential group of Conservatives praised the "pragmatic and flexible" approach. The Commission's recommendation that sufficient progress has been made will now go to an summit of leaders on December 14-15. "Prime Minister May has assured me that it has the backing of the UK government. On that basis, I believe we have now made the breakthrough we need. Today's result is of course a compromise," Juncker told the hastily-arranged news conference. May said she expected a formal agreement to be approved at the summit. "I also look forward to next week’s European Council meeting, where I hope and expect we will be able to get the endorsement of the 27 (member countries) to what is a hard-won agreement in all our interests," May said. The commission will now begin work on phase two talks, which cover a transitional exit period, trade and long-term relations with the bloc. Draft guidelines showed the transition period would last around two years. During that time, will remain part of the customs union and single market but will no longer take part in institutions or have a vote.

It will still be subject to law. May's key parliamentary ally in Northern Ireland gave a cautious endorsement of the new terms, four days after 11th-hour objections from Belfast scuppered May's attempt to sign off on an accord over the In the text, agreed that should London and Brussels fail to agree a final deal, the United Kingdom will maintain "full alignment" with those rules of the internal market and customs union that help protect north-south cooperation in Ireland. It said in the absence of a trade deal, no new barriers would develop between Northern Ireland and the rest of the United Kingdom unless the devolved government in Northern Ireland agree that distinct arrangements are appropriate. "In all circumstances, the United Kingdom will continue to ensure the same unfettered access for Northern Ireland's businesses to the whole of the United Kingdom internal market," it said. . Irish Foreign Minister Simon Coveney said the border agreement meant there was no way could lead to a hard border between Ireland and Northern Ireland - which will be the only land frontier between and the after "Very good outcome for everyone on the island of Ireland - no Hard Border guaranteed!," Coveney said on Twitter. Not everyone agreed. "A deal in Brussels is good news for Mrs May as we can now move on to the next stage of humiliation," leading campaigner Nigel Farage said on Twitter. What's in the divorce deal? The following is a summary of a joint EU-UK report showing the agreements on three key topics: Citizens' rights Refers to British citizens living in an state and other nationals living in UK on date of its withdrawal. It does not give British citizens a right to move from one state to another and retain the same rights, while rights for and British citizens lapse if they leave their original host country for five years. graph Source: Bloomberg | Compiled by BS Research Bureau Ireland & Northern Ireland promises to preserve the integrity of its own internal market and Northern Ireland's place within it. It says it does not want a hard border between Ireland and Northern Ireland, saying it aims to avoid checks and controls there via a future EU-UK economic relationship. graph Source: Bloomberg | Compiled by BS Research Bureau Financial settlement "Both Parties have agreed a methodology for the financial settlement... drawn up and paid in euro." The settlement will be calculated in terms of a percentage of the budget for 2014-2020, with contributing as if it had stayed in the for 2019 and 2020 and including a British rebate graph Source: Bloomberg | Compiled by BS Research Bureau

First Published: Sat, December 09 2017. 02:10 IST