No Progress On Brexit

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No progress on Brexit at EU summit as clock ticks on 29th June 2018

Pawel Swidlicki Senior Account Manager

KEY TAKEAWAYS A few months ago, this summit was billed as critical in terms of demonstrating progress on Brexit with a view to finalising the negotiations in October. However, the combination of the refugee and migration crisis flaring up again (causing bitter ructions within the German government and threatening Angela Merkel’s position) as well the lack of any headway both in terms of the UK-EU talks and securing a common Brexit position within Cabinet, meant it was largely a non-event from a Brexit perspective. The summit conclusions on Brexit came in at only 4 paragraphs – here is our summary of the key points: • Both sides welcomed the (very limited) progress made in the talks over the past 3 months. This mainly covers relatively routine technical issues, the EU notes that “other important aspects still need to be agreed”. • In addition to the question of the agreement’s governance, this includes the well-established problem of the Irish border backstop. The EU expresses its “concern that no substantial progress has yet been achieved”, notes that the UK committed to this in principle in December, 29 June 2018

• and stresses “that negotiations can only progress as long as all commitments undertaken so far are respected in full”. This morning, Michel Barnier went even further, warning that “huge and serious divergence remains… time is running short” • Gibraltar has also been brought into play more explicitly. The EU has already given Spain a veto over the agreement but the specific reference in the conclusions is generally seen as nod to the new socialist-led government.

• The EU also notes, ahead of next week’s Chequers summit at which the Cabinet will aim to agree on a common position, that “work must also be accelerated with a view to preparing a political declaration on the framework for the future relationship”. • EU leaders also state that “if the UK positions were to evolve, the Union will be prepared to reconsider its offer”. A reminder then that if the UK were to further water down its red lines (especially on the ECJ and free movement) the EU would be in a position to improve their offer.

Edelman | Southside | 105 Victoria Street | SW1E 6QT London | www.edelmaneditions.com | 020 3047 2177 | @edelmanUK


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