Terms agreed for post-Brexit relations

Agreement hailed as a big step forward by Britain, which only has months to seal pacts

The European Union agreed on guidelines yesterday that will govern negotiations on future relations and trade with Britain after Brexit, almost exactly a year before the country leaves the bloc.

The agreement was hailed as a big step forward by Britain, which only has months to seal sweeping agreements on trade, security and a host of other areas before it ceases to be an EU member.

At a summit of EU leaders in Brussels, European Council President Donald Tusk tweeted that the “EU 27 has adopted guidelines for the future EUUK relations.”

The document lays out the EU’s approach on issues including future security, defence and foreign policy ties, as well as the outlines of a future The Bank of England said it would update banks and insurers next week on its approach to Brexit given that Britain and the European Union have now adopted a transition deal.

“The Bank of England welcomes the EU Council’s conclusion that there should be a transition period following the UK’s withdrawal from the EU,” a BoE spokesperson said on Friday.

“In light of the EU Council’s conclusions, we will provide an update on our regulatory approach to preparations for EU withdrawal next week.” Banks and insurers operating in Britain are making changes to ensure they can still serve customers in the bloc after Brexit.

Financial firms from the EU operating in London are also waiting to see if they can continue as branches or have to convert into subsidiaries, an expensive undertaking.

EU leaders approved yesterday a “standstill” transition period to end 2020. trade deal. Britain may negotiate trade agreements with other countries after it officially leaves the bloc at midnight on March 29, 2019, but no pact can enter into force without EU permission before the end of December 2020, after a postBrexit transition.

During that period, the country will remain part of the tariff-free single market and customs union even though it will be out of all EU decisionmaking bodies.

British Prime Minister Theresa May said the transition period would give people and businesses time to prepare for life outside the EU, and she welcomed the EU greenlight to future trade negotiations.

“I believe there is a new dynamic now in the negotiations,” May said as she left the Brussels summit. “I believe we are approaching this with a spirit of cooperation and a spirit of opportunity for the future as well.”

Decisive step

After kissing May’s hand in front of reporters, EU Brexit negotiator Michel Barnier welcomed the move, saying “we are taking a decisive step in this difficult and extraordinary negotiation.”

However, the guidelines warn that the road ahead, particularly on trade, will be bumpy and that Britain should not expect to enjoy the close commercial relations it does today.

“Divergence in external tariffs and internal rules as well as absence of common institutions and a shared legal system, necessitates checks and controls to uphold the integrity of the European Union single market as well as of the UK market. This unfortunately will have negative economic consequences, in particular in the United Kingdom,” the document said.