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Divorce First, Trade Talks Later, E.U. Tells U.K. Divorce First, Trade Talks Later, E.U. Tells U.K.
(35 minutes later)
BRUSSELS — Britain must agree to pay its bills and to protect millions of Europeans living in Britain before reaching a new trading relationship with the European Union, Donald Tusk, the president of the European Council, said on Friday.BRUSSELS — Britain must agree to pay its bills and to protect millions of Europeans living in Britain before reaching a new trading relationship with the European Union, Donald Tusk, the president of the European Council, said on Friday.
Side-by-side divorce and trade talks “will not happen,” Mr. Tusk said at a news conference in Malta. Divorce has to come first, he said, and he warned that the negotiations could be “confrontational.”Side-by-side divorce and trade talks “will not happen,” Mr. Tusk said at a news conference in Malta. Divorce has to come first, he said, and he warned that the negotiations could be “confrontational.”
Mr. Tusk also wrote on Twitter: “Our duty is to minimise uncertainty, disruption caused by Brexit for citizens, businesses & Member States. It’s about damage control.” He added, referring to the bloc’s 27 members after Britain leaves: “EU27 does not, will not pursue punitive approach. Brexit in itself is already punitive enough. After more than 40 years of being united, we owe it to each other to make this divorce as smooth as possible.”Mr. Tusk also wrote on Twitter: “Our duty is to minimise uncertainty, disruption caused by Brexit for citizens, businesses & Member States. It’s about damage control.” He added, referring to the bloc’s 27 members after Britain leaves: “EU27 does not, will not pursue punitive approach. Brexit in itself is already punitive enough. After more than 40 years of being united, we owe it to each other to make this divorce as smooth as possible.”
The words were tough, but unsurprising: For months, since Britain voted in a June 23 referendum to leave the bloc, Brussels has insisted that the terms of a future trade agreement would not be negotiated until the terms of the divorce were clear.The words were tough, but unsurprising: For months, since Britain voted in a June 23 referendum to leave the bloc, Brussels has insisted that the terms of a future trade agreement would not be negotiated until the terms of the divorce were clear.
Britain formally began the withdrawal process on Wednesday, and Friday’s statement by Mr. Tusk essentially made official the European Union’s stance. Britain formally began the withdrawal process on Wednesday, and Mr. Tusk’s statement on Friday essentially made official the European Union’s stance.
In laying out the European Union’s terms for the exit negotiations — which still must be voted on by the leaders of the 27 remaining nations — Mr. Tusk essentially presented the bloc’s response to Prime Minister Theresa May’s opening move. In laying out the European Union’s terms for the exit negotiations — which still must be voted on by the leaders of the 27 remaining nations — Mr. Tusk essentially presented the bloc’s response to the opening move from Prime Minister Theresa May of Britain.
The terms, nonetheless, represent an early setback for Britain, which wants a trade deal settled in parallel with terms for its departure. Instead, the draft guidelines outline a “phased approach” that the European Union will require Britain to follow before talks about any deal on access to the European single market of more than 500 million consumers.The terms, nonetheless, represent an early setback for Britain, which wants a trade deal settled in parallel with terms for its departure. Instead, the draft guidelines outline a “phased approach” that the European Union will require Britain to follow before talks about any deal on access to the European single market of more than 500 million consumers.
Market access is a British priority that took on added urgency this week since Mrs. May’s formal notification on March 29 started a two-year clock for talks to reach an agreement. That time constraint limits British leverage in the negotiations because it would face a welter of tariffs and customs barriers if a deal is not struck during that period. Market access is a British priority that took on added urgency this week, as Mrs. May’s formal notification on Wednesday started a two-year clock to reach an agreement. That time constraint limits British leverage in the negotiations because it would face a welter of tariffs and customs barriers if a deal is not struck during that period.
The guidelines will come into effect if national leaders approve them at a summit meeting on April 29. Michel Barnier, a former French foreign minister, is then expected to take over day-to-day negotiations with the government in London. The guidelines will come into effect if national leaders approve them at a summit meeting on April 29. Michel Barnier, a former foreign minister of France, is then expected to take over day-to-day negotiations with the government in London.
Mr. Barnier has said that he wants to wrap up talks by October 2018 to enable the European Parliament and member states to assess the results and allow terms for a transition to be agreed. Although there is legal scope to extend the talks beyond March 2019, when the two-year statutory period expires, such a step would need unanimous approval from the 27 remaining countries.Mr. Barnier has said that he wants to wrap up talks by October 2018 to enable the European Parliament and member states to assess the results and allow terms for a transition to be agreed. Although there is legal scope to extend the talks beyond March 2019, when the two-year statutory period expires, such a step would need unanimous approval from the 27 remaining countries.
The leaders of two of the most influential countries in the bloc, President François Hollande of France and Chancellor Angela Merkel of Germany, have insisted that London first agree on how to protect the rights of more than about three million expatriates in Britain and on the amount of money Britain owes to cover its commitments as a member of the bloc.The leaders of two of the most influential countries in the bloc, President François Hollande of France and Chancellor Angela Merkel of Germany, have insisted that London first agree on how to protect the rights of more than about three million expatriates in Britain and on the amount of money Britain owes to cover its commitments as a member of the bloc.
European officials underlined the need to safeguard the rights of expatriates by referring to them in the opening paragraphs of the nine-page guidelines. The document also said there should be a “single financial settlement” of Britain’s commitments but did not give a figure.European officials underlined the need to safeguard the rights of expatriates by referring to them in the opening paragraphs of the nine-page guidelines. The document also said there should be a “single financial settlement” of Britain’s commitments but did not give a figure.
The leaving bill could be roughly 60 billion euros, about 51 billion pounds or $64 billion, according to European Union authorities, and that sum is already a major sticking point. David Davis, the minister who leads Britain’s Department for Exiting the European Union, told British television on Thursday that he was not expecting a bill “anything like that” size.The leaving bill could be roughly 60 billion euros, about 51 billion pounds or $64 billion, according to European Union authorities, and that sum is already a major sticking point. David Davis, the minister who leads Britain’s Department for Exiting the European Union, told British television on Thursday that he was not expecting a bill “anything like that” size.
Enda Kenny, the Irish prime minister, has called for steps to preserve a peaceful coexistence with Northern Ireland, where there will be a new land border with the European Union. European officials said “flexible and imaginative solutions will be required” to maintain peace and avoid “a hard border” between Ireland, a European Union member, and Northern Ireland, part of the United Kingdom. Prime Minister Enda Kenny of Ireland has called for steps to preserve a peaceful coexistence with Northern Ireland, where there will be a new land border with the European Union. European officials said “flexible and imaginative solutions will be required” to maintain peace and avoid “a hard border” between Ireland, a European Union member, and Northern Ireland, part of the United Kingdom.
Britain, which joined a forerunner of the European Union in 1973, is the first country to leave the bloc. The procedure for the separation, known as Article 50, has never been used before. Striking a deal will be fiendishly complex and there are hazards for both sides. Britain, which joined a forerunner of the European Union in 1973, is the first country to leave the bloc. The procedure for the separation, known as Article 50, has never been used before. Striking a deal will be fiendishly complex, and there are hazards for both sides.
Earlier this week, Mr. Tusk emphasized the need to limit the fallout and described the negotiations as an exercise in “damage control.”Earlier this week, Mr. Tusk emphasized the need to limit the fallout and described the negotiations as an exercise in “damage control.”
European leaders do not want Britain to enjoy the same benefits, such as unfettered access to the vast European Union single market, that it does as a member of the bloc. Yet they are extremely wary of Britain turning itself into a low-tax haven with weakened regulations that would undercut European neighbors. European leaders do not want Britain to enjoy the same benefits that it has as a member of the bloc, such as unfettered access to the vast European Union single market. Yet they are extremely wary of Britain turning itself into a low-tax haven with weakened regulations that would undercut European neighbors.
Charles Michel, the prime minister of Belgium, which is one of the member states that has the closest economic ties with Britain, said this week that “securing a fair and level playing field is the main objective.” Prime Minsiter Charles Michel of Belgium, a member states that has some of the closest economic ties with Britain, said this week that “securing a fair and level playing field is the main objective.”
Another challenge for European leaders is to maintain unity. Populist politicians have bolstered their following by blaming the European Union for high unemployment in countries like Greece and for failing to prevent an influx of migrants from the Middle East and Africa.Another challenge for European leaders is to maintain unity. Populist politicians have bolstered their following by blaming the European Union for high unemployment in countries like Greece and for failing to prevent an influx of migrants from the Middle East and Africa.
France holds presidential elections next month in which Marine Le Pen, the anti-European Union leader of the right-wing National Front, has called for a referendum on leaving the bloc. For now, Emmanuel Macron, who is pro-Europe, is leading the polls. France holds the first round of presidential elections next month. Marine Le Pen, the anti-European Union leader of the right-wing National Front, has called for a referendum on leaving the bloc. For now, Emmanuel Macron, who is pro-Europe, is leading the polls.
The European Parliament also has a final say over any deal agreed with Britain. Lawmakers could veto any agreement that they think is too generous or that they view as failing to guarantee the rights of citizens of European Union countries in Britain to continue living and working there. The European Parliament also has a final say over any deal reached with Britain. Lawmakers could veto any agreement that they find too generous or that they view as failing to guarantee the rights of citizens of European Union countries already in Britain to continue living and working there.
“One thing is clear for us: Cherry picking is over for the United Kingdom and we will defend the interests of the 440 million E.U. citizens when negotiating with the U.K.,” Manfred Weber, a German who is one of the most powerful conservative lawmakers at the European Parliament, said this week. “One thing is clear for us,” Manfred Weber, a German who is a powerful conservative lawmaker at the European Parliament, said this week. “Cherry picking is over for the United Kingdom, and we will defend the interests of the 440 million E.U. citizens when negotiating with the U.K.”