The EU summit that involved 27 European leaders can offer a glimpse of how the EU sees the upcoming Brexit negotiations – or at least how it wants to see it.
European leaders have managed to produce a unanimous decision regarding their Brexit negotiating guidelines on Saturday, essentially kick starting the process that will result in the UK’s separation from the bloc by March 2019.
So, what do we know so far?
- It appears that – at least so far – EU officials assume they have the leverage in the Brexit talks and that Britain has more to lose if no deal is achieved
- Many EU leaders openly stated they will not allow the UK to enjoy better terms outside the bloc, serving as a warning to other members who might be thinking of leaving
- For the time being, everyone appears to be united
- The EU demands that the issues of check-out bill, EU citizens’ rights and the Irish border will be resolved before trade
- Each of the 27 countries has a veto on launching the trade negotiations, but it appears that the EU is open to conduct parallel discussions on the separation and the new commercial agreement
For the time being, May holds her stand, demanding that the bill issue and trade will be discussed simultaneously. This means that the first stage of the talks will probably be dedicated to – you’ve guessed it – what to talk about. However, the UK PM has also softened her tone regarding many topics.
There is no doubt, that we are facing an unpleasant divorce, but – unless you’re Bruce Willis and Demi Moore – there are rarely pleasant ones. With the early UK elections planned for June 8th, there is a lot that remains unknown and any decision – or even rumor – could impact the market. Stay informed and trade with knowledge.