Britain will remain under the jurisdiction of the European Court of Justice and be required to permit freedom of movement during a transition period expected to last two years after Brexit, under guidelines released by the European Council.
The guidelines were agreed by the leaders of the 27 remaining EU member states as they gave the green light for Brexit talks to move on to their second phase, dealing with the transition to a new relationship after the UK’s withdrawal.
The momentous decision was announced by European Council president Donald Tusk after discussions lasting less than half an hour in Brussels.
(PA Graphics)
Prime Minister Theresa May was not present, because she left the two-day summit early after assuring leaders of the remaining 27 EU nations on Thursday evening of her determination to see Brexit through despite this week’s defeat in the House of Commons.
Mr Tusk said on Twitter: “EU leaders agree to move on to the second phase of #Brexit talks. Congratulations PM @theresa_may.”
The EU position set out in the guidelines make clear that any transition period agreed by Brussels “must be in the interest of the Union, clearly defined and precisely limited in time”.
Under the proposals, the UK will be required to follow the EU rulebook in its entirety – including laws adopted during the transition period – while playing no part in the decision-making processes of the European institutions.
And the guidelines make clear that Britain will be expected to observe the single market’s “four freedoms” of movement of goods, services, people and capital during the period, expected to begin on March 29 2019.
During the transition, the guidelines state, “all existing Union regulatory, budgetary, supervisory, judiciary and enforcement instruments and structures will … apply, including the competence of the Court of Justice of the European Union.
“As the United Kingdom will continue to participate in the Customs Union and the Single Market (with all four freedoms) during the transition, it will have to continue to comply with EU trade policy, to apply EU customs tariff and collect EU customs duties, and to ensure all EU checks are being performed on the border vis-a-vis other third countries.”