Representatives from both the UK and EU said the latest round of Brexit talks had brought new momentum to the negotiations. But the EU has warned that the UK must define its financial commitments.
Image: Reuters/F. Lenoir
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The EU's chief Brexit negotiator, Michel Barnier, has hailed a "new dynamic" in the talks aimed at arranging Britain's exit from the bloc.
Barnier said UK Prime Minister Theresa May's speech last week in Florence had brought new "momentum" and that everyone had "felt this during the negotiations this week."
UK chief negotiator David Davis, in his usual upbeat manner, told reporters, "We are making decisive steps forward." In particular, he said, progress had been made on safeguarding the rights of citizens who will be hit by Britain's EU exit, due on March 29, 2019.
Barnier, however, warned that the parties "were not quite there yet" and that "sufficient progress" was still lacking, echoing comments made by EU Council President Donald Tusk on Tuesday. The term "sufficient progress" is used by EU negotiators to gauge whether the UK has created the conditions for further negotiations on the future relationship between Britain and the EU.
EU assessment to be postponed?
The three key divorce issues from the EU's point of view are Britain's financial commitments, what will happen to the Irish border and the rights of 3 million EU citizens living in Britain. The issues were originally to be clarified by the start of an EU summit in October.
The European Parliament, however, has suggested lawmakers postpone their assessment of the talks until after the summit.
May's speech in Florence has been seen as a signal for compromise as it offered key concessions as well as a proposal for a transition period of around two years after Brexit to allow businesses to adjust to the new situation.
Brexit negotiations: What are the key issues?
Brexit talks began in June and both sides have been frustrated at the lack of progress. DW has taken a look at key issues being debated in Brussels as the clock ticks toward Britain's scheduled departure in March 2019.
Image: picture-alliance/dpa/o. Hoslet
Two phases
EU leaders agreed to negotiating guidelines during a summit in April 2017 that divided the divorce talks into two phases. Phase I, in which both sides aimed to settle the basic terms of Britain's departure, started in July and ended with an agreement on "sufficient progress" in December. Officials are now holding Phase II negotiations on the post-Brexit relationship between Britain and the EU.
Image: Reuters/File Photo/Y. Herman
The "Brexit Bill"
London agreed to a formula for calculating what it owes in its "divorce bill" to the EU in early December after months of haggling by British officials. The current EU budget expires in 2022 and EU officials have said the divorce bill will cover financial obligations Britain had committed to before triggering article 50. The final bill will reportedly total around £50 billion (€67 billion).
Image: picture-alliance/empics/D. Martinez
Citizens' rights
Both sides agreed in early December that the 3 million EU citizens currently in Britain and the 1.1 million British citizens in the EU keep their residency rights after Brexit. British courts will have immediate jurisdiction over EU citizens living in Britain. But the EU's highest court, the ECJ, can hear cases until 2027 if British judges refer unclear cases to them.
Image: picture-alliance/dpa/B. Smith
The Irish border
Britain and the EU also agreed in December that no border checks between the Republic of Ireland and Northern Ireland would return post-Brexit. How feasible the commitment will be is unclear, as Britain's commitment to leaving the EU Single Market and Customs Union makes it difficult to avoid customs checks at the Irish border.
Image: Reuters/C. Kilcoyne
Transition period
Theresa May envisages a two-year transition period after March 2019. Both sides still have to hash out the details of the transition period in Phase II, including the exact end-date, whether new EU laws passed during the period will apply to Britain, and whether Britain can negotiate its own free trade deals. British officials hope to agree on the terms of the transition by March 2018.
Image: Imago
Trade
May has repeatedly said Britain will leave the European Single Market and the EU Customs Union. Leaving both could disrupt British-EU trade, but allow Britain to negotiate its own free trade deals and restrict EU migration — key demands by pro-Brexit politicians. London has said it wants to negotiate a new EU-UK trade deal during Phase II to minimize trade disruption before March 2019.
Image: Picture alliance/empics/A. Matthews
Immigration
Britain has also vowed to restrict EU migration into Britain after Brexit. However, some British lawmakers are wary that a sharp drop in immigration could lead to shortfalls in key sectors, including health, social care and construction. The EU has warned that Single Market access is out of the question if London decides to restrict the ability of its citizens to live and work in Britain.
Image: picture alliance/PA Wire /S. Parsons
Security
Recent terror attacks across Europe including a string in Britain underline both sides' support for continued security cooperation after March 2019. But access to EU institutions such as Europol and programs such as the European Arrest Warrant require compliance with EU laws. Whether Britain will still be compliant after it leaves is unclear.
