Businesses appeal for easy Brexit transition

Britain’s biggest business groups called on the government Monday to quickly agree to a transition period of at least two years following the country’s exit from the European Union to provide certainty about trade as companies make critical decisions about jobs and investment.

The letter sent to Brexit Secretary David Davis said the economic relationship between Britain and the EU should be “as close as possible to the status quo” during the transition.

“Agreement (on a transition) is needed as soon as possible, as companies are preparing to make serious decisions at the start of 2018, which will have consequences for jobs and investment in the U.K.,” said the letter from the Confederation of British Industry, the British Chambers of Commerce, the manufacturing trade body EEF, the Institute of Directors and the Federation of Small Businesses.

Britain is due to leave the EU in March 2019, and Prime Minister Theresa May has requested a twoyear transition period in which the two sides would trade on terms largely similar to current arrangements.

After a European summit last week in Brussels, EU leaders insisted that Britain must make more concessions on a divorce payment before talks on trade and the transition can move forward.

They did, however, agree to begin discussions among themselves about what the future relationship will look like.

French President Emmanuel Macron sounded a note of caution, saying the two sides are still “far from having reached the necessary financial commitments” that would allow the talks to move on to the second phase.

In a reflection of the tense mood, a high-level European Union official on Monday rejected an unfavourable news report about a dinner a week ago between May and European Commission President Jean-Claude Juncker where May sought to rally EU support for her views on the negotiations.

Juncker’s chief aide, Martin Selmayr, denied an account of the dinner that claimed May was “begging for help” from the other 27 EU leaders. He also denied that the commission or Juncker had leaked the story to Frankfurter Allgemeine Sonntagszeitung newspaper.

The newspaper said Juncker told colleagues that “May’s facial expressions and her appearance spoke volumes” and she appeared “despondent.”

Selmayr said on his Twitter account: “I deny that 1/we leaked this; 2/Juncker ever said this; 3/we are punitive on Brexit.” The story was an attempt to undermine the Brexit talks, he said.