Ironing out of details still needed, say businesses

THERESA May has passed her biggest hurdle yet on the road to Brexit, as the European Commission cleared the way for negotiations on the future relationship after the UK’s withdrawal from the EU.

Britain will pay a “divorce bill” of up to £39bn under the terms of a withdrawal package agreed with Brussels.

The breakthrough was hailed by the Prime Minister as “a hardwon agreement in all our interests”.

Commission president JeanClaude Juncker said it represented “sufficient progress” for negotiations to move on to their second phase, subject to approval by leaders of the remaining 27 EU states at a summit on December 14-15.

In dramatic pre-dawn scenes, Mrs May and Brexit Secretary David Davis flew to Brussels to confirm with Mr Juncker over breakfast the text of a joint document setting out proposals on the key withdrawal issues of citizens’ rights, the Irish border and Britain’s exit bill.

But the scene was set for further wrangling, as European Council president Donald Tusk set out guidelines for the next phase of talks, covering the transition to a post-Brexit relationship, which envisage the UK staying in the single market and customs union and observing all EU laws for around two years after the official withdrawal date in March 2019.

He said only “exploratory talks” on a free trade agreement could begin at this stage, with the EU’s chief Brexit negotiator Michel Barnier suggesting that “real negotiations” on trade would get under way once a withdrawal treaty is finalised in October.

There was consternation among some Brexit-backers over provisions allowing the European Court of Justice a role in overseeing EU citizens’ rights in the UK for eight years after Brexit.

However, Downing Street said they only expected around two or three cases a year to be referred voluntarily by UK judges to the Luxembourg court.

Foreign Secretary Boris Johnson had only managed to “scrape through” the first phase of Brexit negotiations some 18 months after the referendum.

“Conservative chaos and posturing has caused damaging delay and risked serious harm to our economy,” said the Labour leader.

“We need a much stronger and more constructive approach in crucial phase two.”

Welcome: Ann McGregor BUSINESSES say a “breakthrough” on Brexit talks which could avoid a hard border is welcome but that details still have to be ironed out “swiftly”.

Theresa May struck a last minute deal with the EU to move Brexit talks on to the next phase.

Ann McGregor, chief executive of the Northern Ireland Chamber of Commerce and Industry, said it “welcomes the ‘sufficient progress’ that has been made in the first phase of the Brexit negotiations”.

“Business will particularly welcome the commitment made towards no hard border on the island of Ireland, and they will also be relieved that the UK market, as well as the all island market, will be protected.”