U.K. is set to start fourth round of Brexit talks
The U.K. Prime Minister Theresa May’s long-awaited Brexit speech in Florence on Friday was a clear indication and affirmation that “Brexit does not mean just Brexit”, but means long and tiring negotiations and possible compromises for the future of the U.K. and the EU. Her rhetoric and tone were more constructive compared with previous speeches and she asked for a transition period aimed at bridging the gap between leaving the EU in March 2019 and beginning new trading ties. In accordance with this two-year transition period, May’s proposal to EU members is likely to be the hot topic of the fourth round of Brexit negotiations set to start on Monday, Sept. 25.
EU officials already made it clear that any kind of transition period must maintain the status quo meaning that rules, regulations and jurisdiction would remain in place by the end of the period.
For some hard Brexiteers, a two-year transition deal would mean an “open-ended” term and the U.K would be better off leaving the bloc at the end of March 2019. However, Chancellor Philip Hammond has been very much supportive of a soft Brexit with a transitional period in order to avoid a regulatory cliff-edge for U.K. businesses.
The other important issue last week was how much the U.K. government would be willing to pay for the divorce bill to the EU. Even though the prime minister has not mentioned a sum, the total amount that the U.K. government is planning to offer is likely to be around €20 billion (£18 billion).
In her speech in Florence, she said, “The U.K. will honor commitments it has made during the period of our membership.”
However, according to the Guardian newspaper story, EU leaders are eyeing a sum in the region of between €50 billion (£44 billion) and €100 billion (£88 billion) as part of the final settlement.
On March 24, Jean-Claude Juncker, president of the European Commission had confirmed the size of the so-called divorce bill would be “calculated scientifically” and would be around £50 billion (€57 billion).
The concessions on citizen rights are another important issue that will be discussed during the fourth round of talks.
“I want to incorporate the agreement fully into U.K. law and make sure British courts can refer directly to it,” May said while attempting to reassure that the rights of EU citizens living and working in the U.K. would be secured.
EU leaders are due to decide on separation issues, including the rights of citizens, the Irish border and the “divorce bill” or financial settlement, to allow talks to move on for the future of bilateral trade relationship, as the U.K. would like.