Today is the second day of the last European Council meeting before the December 31 deadline when the United Kingdom’s transition period will formally end and it will completely separate from the European Union.
Naturally, a big chunk of the summit has been dedicated to the future relationship between the union and the UK, even as the coronavirus continues to pose an increasingly greater threat to the continent, giving EU member states lots of other things to worry about.
Nevertheless, member states pushed ahead with their discussion on handling the United Kingdom’s departure. The European Council already managed to publish several conclusions about the future of EU-UK relations. These points summarize the current sentiment of the EU regarding the possibilities of a trade agreement with the UK.
According to the conclusions published, the EU would like to continue negotiations with the United Kingdom even as the two sides are running out of time. However, experts noted that the EU excluded the term “intensively” from an earlier draft of the conclusions, indicating that the bloc has drawn some hard lines in the sand. Fisheries and fair competition rules remain the most prominent areas of disagreement. The directives also pointed out that the UK must respect the Brexit withdrawal agreement over its own controversial Internal Market Bill.
The chief negotiator for the UK, Lord Frost, expressed his disappointment with the wording, which to him signals that the EU is not ready for a compromise. Prime Minister Boris Johnson stated that he will end the negotiations if the UK is not offered the same trade conditions as Canada.
Currently, the EU plans to try to continue the talks for two or three more weeks, but it is ultimately up to the UK to decide whether to follow through on the Prime Minister’s promise and cancel the talks.
Needless to say, the progress on a free trade agreement between the EU and the UK will have an impact on the euro, the pound, British and European stock markets, and even safe havens.
