EU Council Guidelines – moving to phase two of the Brexit negotiations

December 15, 2017

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Today, the EU Council has concluded that sufficient progress on the first phase of the Brexit talks has been made, which allows for the negotiations to move on to discussing UK’s future relationship with the bloc. The Council has also adopted a set of guidelines, four pages long, listing the terms for a transition period, and a rough timetable for the next few months. In the first instance, the second phase of the negotiations will be dominated by discussions on the transition period, during which the UK must abide by and comply with all EU laws, including continuing to be under the ambit of the jurisdiction of the EU Court of Justice, till circa 2021, but it will not be involved in any decision-making process of the EU bodies.

In the Guidelines, the Council reiterates that an agreement on a future relationship can only be finalised and concluded once the UK has become a third country and noted UK’s stated intention to no longer participate in the Customs Union and the Single Market after the end of the transition period.

The Council called on the EU Commission to put forward appropriate recommendations and on the Council to adopt additional negotiating directives on transitional arrangements in January 2018. Also, the Council added that it will adopt additional guidelines in March 2018, particularly in relation to the framework for the future relationship between EU and UK.

 

This article appears in the JHA December 2017 Tax Newsletter, which also features:

  1. C-382/16 Hornbach-Baumarkt – AG Opinion – Freedom of establishment and transfer pricing

You can download the whole newsletter as a PDF: December 2017 – Newsletter

 

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