IMPACT – MEDIUM
EU member states are expected to sign off on a set of tough Brexit negotiating points, including a requirement that the U.K. accept EU laws and budget if it seeks a transitional “implementation phase” following the U.K.’s break from the EU in the spring of 2019.
Background: The U.K. has indicated that it will pursue a “hard Brexit,” where it leaves Europe’s single market and retakes control of its migration processes for EU nationals. The U.K. invoked Article 50 March 29, officially signaling the country’s intent to leave the EU after the U.K. narrowly voted to leave the bloc in 2016.
BAL Analysis: While negotiations have not yet formally begun, the EU has indicated that it will take a hard line with the U.K. The U.K. may push for a transitional phase under which free movement would continue for a set amount of time after the U.K. officially leaves the EU, but it is unclear whether the government would be willing to accept the costs associated with such an arrangement that, for now, the EU has indicated that it would seek to impose. Businesses will hope for a transitional phase to adjust to big changes that look set to lie ahead for the U.K, and recent guidance from the Government regarding the rights of EU nationals could be seen as a move to reassure businesses and EU nationals that the law remains unchanged until formal Brexit.
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