The leaders of the EU have given the green light for Brexit negotiators to start trade talks at today’s European Council summit.
The EU27, which is meeting to discuss Brexit this morning without Theresa May, has also given the transition agreement unveiled on Monday its formal seal of approval.
In a statement issued this morning, the European Council said it “welcomes the agreement reached by the negotiators on parts of the legal text of the Withdrawal Agreement covering citizens’ rights, the financial settlement, a number of other withdrawal issues and the transition”.
On the Irish border, the statement said it welcomed May’s assurances that Michel Barnier’s backstop was still in play – unless a better option is found – and also stressed that Gibraltar’s future was still dependent on the final deal.
“The European Council calls for intensified efforts on the remaining withdrawal issues as well as issues related to the territorial application of the Withdrawal Agreement, notably as regards Gibraltar, and reiterates that nothing is agreed until everything is agreed,” the statement added.
The UK will remain in the Single Market and customs union during the 21-month transition period, which will end on 31 December 2020. That means the UK will be bound by EU-law during the same timeframe, but not able to take part in any decisions.
The EU has offered a major concession in allowing the UK to negotiate trade deals during the transition period, while the UK has backed down over its position on citizens rights, with those coming from the EU during the next two years – and their families – still able to do so under the pre-Brexit rules.