{"id":69259,"date":"2018-03-21T09:56:17","date_gmt":"2018-03-21T09:56:17","guid":{"rendered":"http:\/\/www.bnreport.com\/brexits-big-mo\/"},"modified":"2018-03-21T09:56:17","modified_gmt":"2018-03-21T09:56:17","slug":"brexits-big-mo","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/brexits-big-mo\/","title":{"rendered":"Brexit\u2019s \u2018Big Mo\u2019"},"content":{"rendered":"

LONDON \u2014 Brexit may finally have the \u201cBig Mo<\/a>.\u201d<\/p>\n

After reaching an agreement on the terms of a 21-month transition<\/a> Monday, British officials now believe they have enough political momentum that the entire withdrawal agreement could be wrapped up by the end of July despite ongoing disagreement over the Irish border<\/a>.<\/p>\n

\u201cOver the last few days we\u2019ve trod an essential part of the road towards an orderly withdrawal,\u201d the EU\u2019s chief Brexit negotiator Michel Barnier told reporters at an upbeat press conference in Brussels.<\/p>\n

The newfound optimism, which may yet prove wishful thinking, completes a dramatic turnaround in sentiment in Westminster, which until recently was gripped by a perception of inertia, Cabinet disagreement and indecision over the government\u2019s long-term vision for Brexit.<\/p>\n

Just weeks ago, senior U.K. government officials were warning that a transition deal in March was \u201coptimistic\u201d with the two sides remaining far apart on a number of core issues, including citizens\u2019 rights, fishing access and the final cutoff date.<\/p>\n

\n

The transition deal has already sparked concerns among Tory Brexiteers though.<\/p>\n<\/blockquote>\n

A series of rapid concessions by the U.K. on all three following Theresa May\u2019s Mansion House speech<\/a> earlier this month cleared the way for today\u2019s agreement.<\/p>\n

The deal was greeted with a shrug by some in Brussels. \u201cWe had no deadline for [a transition deal], it was something that they [the U.K. government] pushed for, it doesn\u2019t change much from our perspective,\u201d said one EU diplomat. <\/p>\n

Revised Council guidelines for talks on the U.K.\u2019s future relationship with the bloc, obtained by POLITICO, also added a note of caution \u2014 calling on the Commission, its foreign policy chief and member countries to prepare for a no-deal scenario<\/a>.<\/p>\n

But to get this far, the EU has also moved its position (a little), giving some political cover to May\u2019s concessions by allowing consultation with the U.K. over fishing quotas and a clause committing both sides to act in good faith.<\/p>\n

<\/p>\n

\u201cOver the last few days we\u2019ve trod an essential part of the road towards an orderly withdrawal,\u201d Barnier (right) said | Emmanuel Dunand\/AFP via Getty Images<\/p>\n

The breakthrough comes just three days before the European Council summit in Brussels on Thursday, when EU leaders must formally sign off the transition, while also agreeing a mandate for Barnier to negotiate the outline of a future relationship with Britain, including a trade deal.<\/p>\n

For all the signs of progress, however, Ireland remains stubbornly unresolved \u2014 with the potential to scupper not only the transition but the entire divorce agreement.<\/p>\n

British negotiators remain concerned that last-minute demands by Dublin, Paris or Berlin<\/a> this week could throw the transition agreement into the air. When asked about the state of play one leading Cabinet minister said: \u201cFingers crossed for three days now.\u201d<\/p>\n

Even if the deal is signed off by EU leaders this week, the U.K. prime minister must still find an alternative \u201cbackstop\u201d solution that guarantees an open border between Northern Ireland and the Republic of Ireland. May has dismissed Brussels\u2019 opening proposal to keep Northern Ireland in the customs union and single market as \u201cunacceptable.\u201d<\/p>\n

Frictionless trade<\/h3>\n

The U.K. insists that the Irish border issue can be solved with a \u201cdeep and comprehensive\u201d free-trade deal with customs agreement bolted on, and if that proves impossible, \u201cfrictionless\u201d trade can be achieved using technological solutions \u2014 something May reiterated in a letter to Council President Donald Tusk<\/a> Monday.<\/p>\n

Despite the fundamental disagreement, one senior U.K. official familiar with the state of negotiations said there was now growing optimism that the momentum gained in the past few weeks can be maintained.<\/p>\n

\u201cIf we can keep this going, and I think we can, we could have the whole thing wrapped up by end of July,\u201d the U.K. official said. \u201cThere is now real momentum. If we can get through this week you could see rapid progress before the summer.\u201d<\/p>\n

An early agreement on the withdrawal would free up negotiators on both sides to hammer out the framework of the future relationship between the EU and U.K., including the outline of a free-trade agreement as well as a defense and security partnership that could be introduced during the transition period, according to a second U.K. official. That framework would form the basis of a joint political declaration that together with the legal Withdrawal Agreement would be finalized by October.<\/p>\n

\n

\u201cThe issue of the Northern Ireland border with the Republic remains unresolved\u201d \u2014 David Jones, a former Brexit minister<\/em><\/p>\n<\/blockquote>\n

The transition deal has already sparked concerns among Tory Brexiteers though. They are unhappy with the retreat over the U.K.\u2019s new immigration system<\/a> not applying to EU citizens arriving during the transition and on the U.K.\u2019s agreement to allow the EU to continue to set fishing quotas \u2014 albeit with British consultation.<\/p>\n

On Ireland, they fear the EU will show little willingness to engage with alternative U.K. proposals to resolve the Irish border issue if the EU\u2019s backstop option remains in the withdrawal text, and are seeking agreement on an alternative \u201cform of words\u201d to guarantee their support.<\/p>\n

\u201cThe issue of the Northern Ireland border with the Republic remains unresolved,\u201d said David Jones, a former Brexit minister and leading figure among pro-Brexit Conservative backbenchers. \u201cWe would wish to see a form of words that would be acceptable to a U.K. prime minister being agreed as soon as possible. The prime minister has already ruled out the form of words being used by the European Union.\u201d<\/p>\n

A spokesperson for the Democratic Unionist Party also reiterated that Brussels\u2019 backstop text was \u201ctotally unacceptable.\u201d<\/p>\n

<\/p>\n

Britain\u2019s Prime Minister Theresa May delivers her Mansion House speech | Jonathan Brady\/WPA Pool via Getty Images<\/p>\n

However, on other aspects of the transition agreement, May won vital political cover from the figurehead of the backbench Brexiteer caucus, Jacob Rees-Mogg. While criticizing the government for having \u201cgiven in on fishing rights, free movement and the issue of sincere cooperation,\u201d he said the transition agreement was \u201cnonetheless tolerable if the end state is a clean Brexit.\u201d<\/p>\n

\u201cAs so often the words of Sir Francis Drake apply: \u2018It is not the beginning, but the continuing of the same unto the end, until it be thoroughly finished, which yieldeth the true glory,\u2019\u201d he said.<\/p>\n

Pro-EU Conservatives welcomed the transition deal. Nicky Morgan, chair of the House of Commons\u2019 treasury committee, said it would \u201chopefully give businesses \u2026 more time to adjust to life after Brexit and slow down any plans they had felt forced to make for a no-deal Brexit.\u201d<\/p>\n

\u201cBut there are clearly some very tricky issues, particularly on the Irish border, to be worked through,\u201d Morgan added.<\/p>\n

Back-slapping<\/h3>\n

In truth, the U.K. was left with little choice but to accept the EU\u2019s backstop for now. As David Davis said, to do otherwise would be to backtrack on December\u2019s crucial Joint Report agreement \u2014 something that would very likely have killed prospects for a transition deal.<\/p>\n

\n

\u201cIt shows what can be achieved when people and prosperity are placed above politics and ideology\u201d \u2014 Carolyn Fairbairn<\/em><\/p>\n<\/blockquote>\n

\u201cBoth the United Kingdom and the European Union are committed to the Joint Report in its entirety,\u201d Davis said. \u201cAnd in keeping with that commitment, we agree on the need to include legal text detailing the \u2018backstop\u2019 solution for the border between Northern Ireland and Ireland in the Withdrawal Agreement.\u201d<\/p>\n

As for the businesses in whose interests the U.K. government was, first and foremost, acting in pursuit of a transition arrangement, there was delight and back-slapping for a lobbying job well done.<\/p>\n

\u201cThis is what businesses have been calling for since last summer,\u201d said Carolyn Fairbairn, director general of Confederation of British Industry. \u201cIt brings a welcome gift of time for firms on both sides.\u201d<\/p>\n

But she added pointedly: \u201cIt shows what can be achieved when people and prosperity are placed above politics and ideology.\u201d<\/p>\n

David Herszenhorn contributed reporting.<\/em><\/p>\n

Original Article<\/a><\/p>\n

[contf] [contfnew] <\/p>\n

<\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"

LONDON \u2014 Brexit may finally have the \u201cBig Mo.\u201d<\/p>\n

After reaching an agreement on the terms of a 21-mon..<\/p>\n","protected":false},"author":1,"featured_media":69260,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-69259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nBrexit\u2019s \u2018Big Mo\u2019 - Business News Report<\/title>\n<meta name=\"description\" content=\"LONDON \u2014 Brexit may finally have the \u201cBig Mo.\u201d After reaching an agreement on the terms of a 21-mon..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bnreport.com\/en\/brexits-big-mo\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brexit\u2019s \u2018Big Mo\u2019 - 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