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Theresa May asks EU for two-year Brexit transition period Theresa May asks EU for two-year Brexit transition period
(about 2 hours later)
Theresa May has asked EU countries to agree to a two-year Brexit transition during which the UK would continue to enjoy unfettered access to the single market. Theresa May proposed pausing a full Brexit until 2021 by asking EU countries to agree to a two-year transition period during which the UK would continue to enjoy unfettered access to the single market.
The prime minister said her government would accept EU rules during that period including allowing EU citizens to live and work in Britain, accepting European laws and meeting financial obligations. The prime minister said the government would be prepared to accept EU rules in that time, including allowing EU citizens to live and work in Britain, submitting to European laws and continuing to pay into the EU budget.
However, she insisted that such an agreement would be “strictly time-limited”, as she repeated her call at Lancaster House for European partners to offer Britain a bespoke Brexit deal that would amount to a trading relationship closer than any that currently exists with other non-EU countries. But although her speech was described as “constructive” by Michel Barnier, the EU’s chief negotiator, and appeared to have placated Boris Johnson, the two-year transition plan was immediately criticised by hardline Brexiters for lasting too long – and by business groups for being too short.
“One way of approaching this question is to put forward a stark and unimaginative choice between two models: either something based on European Economic Area membership, or a traditional free trade agreement, such as that the EU has recently negotiated with Canada,” she said. May had tried to set out an upbeat vision for Britain’s future relationship with the EU in a speech at the Santa Maria Novella church in the heart of Florence, Italy. Arguing that more time was needed to work on the details of Brexit, May insisted the proposed implementation phase would be “strictly time-limited” lasting “about two years” and the UK would still be formally leaving the bloc in March 2019.
“I don’t believe either of these options would be best for the UK or best for the European Union.” However, she offered a string of concessions to the EU as well as the transition period in a bid to break the deadlock in Brexit negotiations and push talks from the divorce procedures onto questions around the future trading relationship.
Downing Street made clear that any payments would stop after the transition period. May attempted to break the deadlock in negotiations by calling for a treaty to oversee a future security relationship, saying the UK was “unconditionally committed to maintaining Europe’s security”. The prime minister also suggested that the UK could be ready to offer significantly more than the €20bn (£18bn) bill to cover annual contributions over two years, and discuss other long term liabilities such as pensions and debt.
And she improved the offer governing European citizens living in the UK. “I do not want our partners to fear that they will need to pay more or receive less over the remainder of the current budget plan as a result of our decision to leave. The UK will honour commitments we have made during the period of our membership,” she said.
In the 45-minute address, the prime minister also:
insisted the UK was “unconditionally committed to maintaining Europe’s security” and offered a new treaty on maintaining law enforcement and criminal justice cooperation
indicated that the UK could make extra financial contributions on top of continuing to pay into the EU budget until 2020. She said Britain would “cover our fair share of the costs” to participate in “specific policies and programmes ... such as science, education and culture – and mutual security.”
reiterated that the UK will not accept “physical infrastructure at the border” between Northern Ireland and the Republic of Ireland, but gave no details that could help break the stalemate in talks in this area.
promised to enshrine the rights of EU citizens in the Brexit treaty and allow British courts to take the rulings of the European Court of Justice into account when judging disputed cases
May said she recognised that Brexit was a “distraction” from the work that European countries wanted to focus on, but added: “We have to get this right.”
The prime minister did not set out the type of trading arrangement that Britain would seek after the implementation period, instead repeating a call for EU partners to provide a bespoke deal closer than any that already exist.
She argued that neither the Norway-style deal inside the European Economic Area – favoured by the Treasury – nor a Canada-style free trade deal – favoured by Boris Johnson – “would be best for the UK or best for the European Union.”
May argued that EEA membership would mean accepting rules without influence or votes, which would inflict a “loss of democratic control” that she said British voters would not accept.May argued that EEA membership would mean accepting rules without influence or votes, which would inflict a “loss of democratic control” that she said British voters would not accept.
She added that the Canada-EU deal was the most advanced that had been carried out, but added: “Compared with what exists between Britain and the EU today, it would nevertheless represent such a restriction on our mutual market access that it would benefit neither of our economies.”She added that the Canada-EU deal was the most advanced that had been carried out, but added: “Compared with what exists between Britain and the EU today, it would nevertheless represent such a restriction on our mutual market access that it would benefit neither of our economies.”
The question of an EEA-style model versus that held by Canada has become a key debate between Brexiters on May’s backbenches and those fighting for a softer exit. Despite refusing to pick between the two models, some suggested May’s speech, which comes after a week of infighting triggered by Johnson’s decision to publish his own 4,200-word vision of Brexit, leant towards a closer relationship, as favoured by Hammond.
Some suggested that May’s speech, which comes after a week of infighting triggered by Boris Johnson’s decision to publish his own 4,200-word vision of Brexit, leant towards a closer relationship, as favoured by the Treasury and the chancellor, Philip Hammond.
However, the foreign secretary was quick to respond by telling journalists he was “very happy” with the speech, and tweeting:However, the foreign secretary was quick to respond by telling journalists he was “very happy” with the speech, and tweeting:
PM speech was positive, optimistic & dynamic - and rightly disposes of the Norway option! Forwards!PM speech was positive, optimistic & dynamic - and rightly disposes of the Norway option! Forwards!
May said she recognised that Brexit was a “distraction” from the work that European countries wanted to focus on, but added: “We have to get this right.”
She said that the UK would “cease to be a member of the European Union on 29 March 2019”, losing its place at the European Council table, and in the Council of Ministers, and no longer having MEPs.
“But the fact is that, at that point, neither the UK – nor the EU and its member states – will be in a position to implement smoothly many of the detailed arrangements that will underpin this new relationship we seek,” she said, claiming the EU could not legally conclude an agreement with the UK until it becomes an external partner.
She said that EU citizens arriving during the transition period would benefit from free movement, although they would be asked to register in preparation for a future immigration system. Sources pointed out that registration already exists in EU countries such as Belgium.
Jeremy Corbyn said it sounded as if the prime minister had listened to the Labour party, which has a policy of remaining within the single market and in a customs union for a limited period.Jeremy Corbyn said it sounded as if the prime minister had listened to the Labour party, which has a policy of remaining within the single market and in a customs union for a limited period.
But he added: “Fifteen months after the EU referendum the government is still no clearer about what our long-term relationship with the EU will look like.”But he added: “Fifteen months after the EU referendum the government is still no clearer about what our long-term relationship with the EU will look like.”
He said Theresa May and her cabinet were “spending more time negotiating with each other rather than with the EU”, and repeated his claim that the Tories were trying to use Brexit to deregulate and cut taxes. He said May and her cabinet colleagues [were] were “spending more time negotiating with each other rather than with the EU”, and repeated his claim that the Tories were trying to use Brexit to deregulate and cut taxes.
Charlie Elphicke – the pro-Brexit Dover MP – called it a “hugely optimistic and forward-looking speech” that set out a “powerful vision” of an outward-looking Britain. Reaction among senior Brexit campaign supporters was conflicted, with some reservations about May’s strategy for a transitional period that will maintain the status quo. Owen Paterson, a Tory MP and former cabinet minister, told the Guardian: “The speech was very good really, generous in tone and content.”
“The prime minister’s positive tone was exactly right to set out the case for a deal where both the UK and Europe win. However it takes two sides to strike a deal. The behaviour of Brussels remains a serious concern – which is why we must be prepared for every eventuality. That means the UK must be ready on day one – deal or no deal.” But he added: “My main quibble is the transition period as it puts off the time when we can really take advantage of having left. The whole establishment mantra is that business wants to ease in and put off the evil day and it’s all going to be very difficult. That is absolute tosh ... ”
But Neil Carmichael, a fiercely pro-EU Tory who lost his seat in the 2017 general election, argued that much more work needed to be done if Britain was to enter into transition and suggested that a two-year period might not be enough. One backbench Brexiteer argued against the security treaty, saying they did not want the UK to continue to take part in Europe-wide schemes and feared that the move could undermine Nato.
“The business community is getting worried now. I think it needs a longer period. This is a postponement – and the continued lack of clarity on the final deal is still a big problem,” he said. Pro EU Tories were largely pleased with the speech, with Nick Morgan calling it a “very realistic Brexit position – finally!”
But business offered a more mixed response, with calls for a longer transition period. Adam Marshall, director general of the British Chambers of Commerce (BCC), praised the “constructive” tone of Theresa May’s speech but he said the transition period should last for at least three years.
“We will challenge both the UK government and the European commission over the coming months to agree a transition that lasts at least three years from the date of our formal exit from the EU, giving businesses enough time to prepare for a final deal,” he said.
Guy Platten, CEO of the UK Chamber of Shipping, said it was welcome to set out plans to reduce friction but argued that a two-year limit was too tight.