EU Commission chief Ursula von der Leyen said at a press conference on Thursday that: "It was a long and winding road, but we have a good deal to show for it."
The UK Prime Minister Boris Johnson tweeted an image of himself in front of a British flag with his thumbs up. The picture was accompanied by the text: "The deal is done."
The deal is "the biggest bilateral trade deal signed by either side, covering trade worth €747 billion (£668 billion, $909 billion) in 2019," according to a British source.
The text of the deal, said to be some 2,000 pages long, has yet to be released. However, leaders referred to various aspects of the deal in Thursday's press conference.
Britain claimed the deal protected its goals of regaining control of its money, borders, laws and fishing waters. Following the end of the transition period, the UK will no longer be under the jurisdiction of the European Court of Justice.
Von der Leyen said it protects the EU's single market and contains safeguards to ensure Britain does not unfairly undercut the bloc's standards.
Brexit deal reached, averting New Year's Day disaster
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What about EU fishing rights?
On the key sticking point of fisheries,the EU is giving up a quarter of the quota it catches in UK waters. This is far less than the 80% Britain initially demanded. The system will be in place for 5.5 years, after which the quotas will be reassessed.
UK government would support fishing communities with £100 million (€111 million, $135 million) investment boost to modernize fishing industries. "We will be able to catch and eat prodigious amounts of fish," Johnson said.
The French politician and chief Brexit negotiator Michel Barnier said that the EU "will be alongside European fishermen to support them," and promised that the deal provides " a basis for reciprocal access to water and resources, with a new distribution of quotas and fishing opportunities."
What was agreed on trade?
Barnier said that: "there will be some real changes ahead from January 1 for a lot of citizens and a lot of businesses. That is the consequence of Brexit."
There will be free trade without tariffs between the UK and the EU. A new set of rules named "the level playing field," will "be the mark for the EU for all agreements regarding free trade," Barnier told the press conference.
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Which areas of cooperation are set to survive Brexit?
Von der Leyen said that the UK and the EU will continue cooperating on areas of mutual interest, naming climate, energy, security and intelligence and transport.
Johnson said that the deal protects police cooperation and shared intelligence. Both politicians, however, stayed notably vague on details. The UK prime minister said was "absolutely confident this is a deal that protects our police cooperation, that protects our ability to catch criminals and share intelligence across the European continent in a way that we have done for many years."
It emerged the UK would no longer participate in the Erasmus program that enables EU university students to spend time at a different European university and practice language skills.
Johnson said the UK plans on replacing Erasmus with a Turing program, named after mathematician Alan Turing, where students will be able to spend time at universities around the world.
What did EU leaders say?
Von der Leyen said she felt "relief" after long and exhausting negotiations. She added that "parting is such sweet sorrow" — a line from the Shakespeare play Romeo and Juliet.
She quoted the American-British poet T.S Eliot: "What we call the beginning is often the end and to make an end is to make a beginning."
"It is time to leave Brexit behind, our future is made in Europe," she said in closing.
"We've taken back control of our laws and our destiny," said Johnson, adding that the UK would now be"unfettered."
He said the EU was "a very noble enterprise" but that the UK had always had a difficult relationship with the bloc.
Under the new deal, the UK had now become the EU's "flying buttress," an architectural metaphor to describe a structure of stone, built against a wall to strengthen or support it.
"This deal expresses what the people of the country wanted in 2016," he added.
On trade and business, Johnson said: "It will not be a bad thing" for the EU to have "a prosperous dynamic and contented UK on your doorstep."
Johnson dismissed a reporter's question about the UK following the EU rules on tax, worker's rights and tariffs, and on London accepting the "level playing field" with the EU that it had long resisted.
Merkel and Macron react
German Chancellor Angela Merkel said reaching the deal was of "historic importance" and that she was "very confident" it was a good outcome.
French President Emmanuel Macron thanked Barnier in a tweet for "his tenacity and commitment to defending the interests of Europeans."
"European solidarity has shown its strength," he added.
What happens next?
The next step for Britain is a parliamentary debate and vote on implementing the trade deal. This will take place on December 30.
The UK's Labour party, the main opposition force in the UK parliament, is expected to endorse the deal. Labour leader Keir Starmer said it was in the national interest to do so given given the massive disruption likely to be caused by no deal.
The European Parliament will also "analyze the agreement in detail" before deciding whether to approve it in the new year, European Parliament head David Sassoli said in a statement.
Brexit timeline: Charting Britain's turbulent exodus from Europe
Britain shocked the world when it voted to leave the European Union on June 24, 2016. DW traces the major events that have defined Brexit so far.
Image: picture-alliance/empics/Y. Mok
June 2016: 'The will of the British people'
After a shrill referendum campaign, nearly 52% of British voters opted to leave the EU on June 23. Polls had shown a close race before the vote with a slight lead for those favoring remaining in the EU. Conservative British Prime Minister David Cameron, who had campaigned for Britain to stay, acknowledged the "will of the British people" and resigned the following morning.
Image: picture-alliance/dpa/A. Rain
July 2016: 'Brexit means Brexit'
Former Home Secretary Theresa May replaced David Cameron as prime minister on July 11 and promised the country that "Brexit means Brexit." May had quietly supported the Remain campaign before the referendum. She did not initially say when her government would trigger Article 50 of the EU treaty to start the two-year talks leading to Britain's formal exit.
Image: Reuters/D. Lipinski
March 2017: 'We already miss you'
May eventually signed a diplomatic letter over six months later on March 29, 2017 to trigger Article 50. Hours later, Britain's ambassador to the EU, Tim Barrow, handed the note to European Council President Donald Tusk. Britain's exit was officially set for March 29, 2019. Tusk ended his brief statement on the decision with: "We already miss you. Thank you and goodbye."
Image: picture alliance / Photoshot
June 2017: And they're off!
British Brexit Secretary David Davis and the EU's chief negotiator, Michel Barnier, kicked off talks in Brussels on June 19. The first round ended with Britain reluctantly agreeing to follow the EU's timeline for the rest of the negotiations. The timeline split talks into two phases. The first would settle the terms of Britain's exit, and the second the terms of the EU-UK relationship post-Brexit.
Image: picture alliance/ZUMAPRESS.com/W. Daboski
July-October 2017: Money, rights and Ireland
The second round of talks in mid-July began with an unflattering photo of a seemingly unprepared British team. It and subsequent rounds ended with little progress on three phase one issues: How much Britain still needed to pay into the EU budget after it leaves, the post-Brexit rights of EU and British citizens and whether Britain could keep an open border between Ireland and Northern Ireland.
Image: Getty Images/T.Charlier
December 2017: Go-ahead for phase 2
Leaders of the remaining 27 EU members formally agreed that "sufficient progress" had been made to move on to phase two issues: the post-Brexit transition period and the future UK-EU trading relationship. While Prime Minister Theresa May expressed her delight at the decision, European Council President Tusk ominously warned that the second stage of talks would be "dramatically difficult."
Image: picture-alliance/AP Photo/dpa/O. Matthys
July 2018: Johnson, Davis resign
British ministers appeared to back a Brexit plan at May's Chequers residence on July 6. The proposal would have kept Britain in a "combined customs territory" with the EU and signed up to a "common rulebook" on all goods. That went too far for British Foreign Minister Boris Johnson and Brexit Secretary David Davis, who resigned a few days later. May replaced them with Jeremy Hunt and Dominic Raab.
Image: picture-alliance/empics/G. Fuller
September 2018: No cherries for Britain
May's Chequers proposal did not go down well with EU leaders, who told her at a summit in Salzburg in late September that it was unacceptable. EU Council President Tusk trolled May on Instagram, captioning a picture of himself and May looking at cakes with the line: "A piece of cake perhaps? Sorry, no cherries." The gag echoed previous EU accusations of British cherry-picking.
Image: Reuters/P. Nicholls
November 2018: Breakthrough in Brussels
EU leaders endorsed a 585-page draft divorce deal and political declaration on post-Brexit ties in late November. The draft had been widely condemned by pro- and anti-Brexit lawmakers in the British Parliament only weeks earlier. Brexit Secretary Dominic Raab resigned along with several other ministers, and dozens of Conservative Party members tried to trigger a no-confidence vote in May.
Image: Getty Images/AFP/E. Dunand
December 2018: May survives rebellion
In the face of unrelenting opposition, May postponed a parliamentary vote on the deal on December 10. The next day, she met with German Chancellor Angela Merkel to seek reassurances that would, she hoped, be enough to convince skeptical lawmakers to back the deal. But while she was away, hard-line Conservative lawmakers triggered a no-confidence vote. May won the vote a day later.
Image: Getty Images/S. Gallup
January 2019: Agreement voted down
The UK Parliament voted 432 to 202 against May's Brexit deal on January 16. In response to the result, European Council President Donald Tusk suggested the only solution was for the UK to stay in the EU. Meanwhile, Britain's Labour Party called for a no-confidence vote in the prime minister, her second leadership challenge in as many months.
Image: Reuters
March 2019: Second defeat for May's deal
May tried to get legal changes to the deal's so-called Irish backstop in the weeks that followed. She eventually got assurances that the UK could suspend the backstop under certain circumstances. But on March 12, Parliament voted against the revised Brexit deal by 391 to 242. EU leaders warned the vote increased the likelihood of a no-deal Brexit. Two days later, MPs voted to delay Brexit.
Image: picture alliance/AP Photo/T. Ireland
March 2019: Extension after second defeat
Following the second defeat of May's divorce deal, the European Council met in Brussels on March 21 to decide what to do next. EU leaders gave May two options: delay Brexit until May 22 if MPs vote for the withdrawal deal or delay it until April 12 if they vote against the deal. If the deal were to fail again in Parliament, May could ask for a long extension.
Image: picture-alliance/AP Photo/F. Augstein
March 2019: Brexit deal rejected a third time
On March 29, the day that the UK was supposed to leave the EU, British lawmakers voted for a third time against May's deal — rejecting it this time with a vote of 344 to 286. Following the latest defeat, May approached the main opposition Labour leader Jeremy Corbyn in an attempt to find a compromise, angering hardline Brexiteers in her own Conservative party.
Image: picture-alliance/AP Photo/House of Commons/M. Duffy
April 2019: Brexit delayed until Halloween
With the April 12 deadline looming after the third defeat of May's deal, EU leaders met again in Brussels to discuss a second delay. The only question was how long should it be? In the end, the UK and EU agreed to a "flexible" extension until October 31 — which can end sooner if the Brexit deal is approved. The UK had to take part in EU elections in May because their exit wasn't secured in time.
Image: Reuters/E. Plevier
May 2019: Prime Minister Theresa May resigns
Weeks of talks between Prime Minister Theresa May and the Labour party to reach a deal proved unsuccessful and further eroded her political capital. She triggered an angry backlash from her party after she tried to put the option of a second referendum on the table. The series of failures led May to announce her resignation, effective June 7, in an emotional address.
Image: Reuters/H. McKay
June 2019: Search for a new prime minister
After Theresa May announced on June 7 that she would leave office, other members of her Conservative party began clamoring for the top job. Within a month, the leadership battle came down to Jeremy Hunt (left), an EU proponent who fears a no-deal scenario, and Boris Johnson (right), one of the main proponents of Brexit.
July 2019: Prime Minister Boris Johnson
At the end of July 2019, Johnson was officially named Theresa May's successor as British prime minister. "We are going to energize the country, we are going to get Brexit done by October 31," he said after he was elected leader of the Conservative Party.
Image: Imago Images/Zuma/G. C. Wright
September 2019: Johnson's election threat
Conservative rebels and opposition MPs backed efforts to delay an October 31 Brexit deadline in fear of a no-deal departure. In response, Johnson called for a general election, saying his government cannot rule without a mandate after he stripped 21 rebel MPs of their Conservative status. The Labour Party said it would not back elections until legislation to block a no-deal Brexit was in place.
In late September, Britain's highest court ruled that Johnson's decision to suspend Parliament ahead of the UK's planned exit was unlawful. "This was not a normal prorogation in the run-up to a Queen's Speech," said the Supreme Court. Political rivals immediately called on Johnson to leave his post. Johnson said he would abide by the court ruling, though said he "strongly" disagreed.
Image: Reuters/H. Nicholls
October 2019: A new deal
British Prime Minister Boris Johnson managed to secure a deal with European negotiators that would allow the UK to leave the EU in an orderly manner. The deal received unanimous backing from the leaders of 27 other member states. But an attempt to get the UK Parliament to sign off on the deal failed. Instead, Parliament pushed for the Brexit deadline to be extended until the end of January 2020.
Image: picture-alliance/AP Photo/F. Augstein
December 2019: Lawmakers vote for Johnson's Withdrawal Bill
On December 22, UK lawmakers vote for Prime Minister Johnson's European Union withdrawal bill, which will see a leave date of January 31 2020 enshrined in law. Getting a majority to vote to pass the bill in the lower house has proven a major sticking point for the PM, but following a general election Johnson's Conservative party won control of the house and the bill passed with a 124 majority.
Image: picture-alliance/empics/House of Commons
December 2020: EU, UK 'finally' reach trade deal
After months of disagreements over fishing rights and future business rules, the EU and UK clinched a post-Brexit trade deal on Christmas Eve. Prime Minister Boris Johnson hailed the deal, saying the UK has "taken back control of our laws and our destiny." The deal will allow the UK and the EU to trade without tariffs, but also impose limitations on free movement and financial services.