European Union

A year ago, at the height of the Greek crisis, the government in Athens introduced capital controls to prevent a bank run which would lead to the banks' collapse. The controls have been eased but not entirely lifted. The Greek media are still at odds over their effectiveness.

We, the Heads of State or Government of 27 Member States, as well as the Presidents of the European Council and the European Commission, deeply regret the outcome of the referendum in the UK but we respect the will expressed by a majority of the British people. Until the UK leaves the EU, EU law continues to apply to and within the UK, both when it comes to rights and obligations.

Good afternoon. Today 27 EU leaders discussed the consequences of the British referendum for Europe. It was a calm and serious discussion, as it is a serious moment in our common history. Certainly one issue is clear from our debate. Leaders are absolutely determined to remain united and work closely together as 27.

We reconfirmed that Britain's withdrawal from the European Union must be orderly and there will be no negotiations of any kind until the UK formally notifies its intention to withdraw. We hope to have the UK as a close partner in the future. It is up to the British government to notify the European Council of the UK intentions to withdraw from the EU. Leaders made it crystal clear today that access to the single market requires acceptance of all four freedoms, including the freedom of movement. There will be no single market "à la carte".

We also discussed the fact that too many people in Europe are unhappy with the current state of affairs and who expect us to do better. Many recalled that for decades Europe was bringing hope and that we have a responsibility to return to that.

As you know it was a first exchange of 27 leaders after the British referendum and so it would be too early to draw conclusions. This is why we have started a political reflection on the future of EU with 27 states and will meet on 16 September in Bratislava to continue talks. Thank you.

EU leaders resume their meeting this morning with one conspicuous absentee. David Cameron is locked out of deliberations – the first time in more than 40 years that a UK prime minister has been excluded. Better get used to it.

Last night saw one of the more awkward dinners in recent diplomatic history, as Mr Cameron tried to explain the meaning of Brexit to his sombre European counterparts.

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The EU needs to update its long-term spending plan to cope with unforeseen crises such as mass migration, terrorism and youth unemployment, says the Budgets Committee in a resolution voted on Wednesday. The text is intended as an input to the forthcoming EU Commission’s proposal to revise the EU’s multiannual financial framework (MFF) for 2014-2020. The update should also tackle the recurring backlog of overdue EU payments, and look beyond 2020, add MEPs.
Committee on Budgets

Source : © European Union, 2016 - EP

The EU needs to update its long-term spending plan to cope with unforeseen crises such as mass migration, terrorism and youth unemployment, says the Budgets Committee in a resolution voted on Wednesday. The text is intended as an input to the forthcoming EU Commission’s proposal to revise the EU’s multiannual financial framework (MFF) for 2014-2020. The update should also tackle the recurring backlog of overdue EU payments, and look beyond 2020, add MEPs.
Committee on Budgets

Source : © European Union, 2016 - EP

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EU leaders resume their meeting this morning with one conspicuous absentee. David Cameron is locked out of deliberations – the first time in more than 40 years that a UK prime minister has been excluded. Better get used to it.

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Before anything else, let me express my deepest condolences to the families and loved ones of the victims of tonight's attacks at Ataturk International Airport in Istanbul. In times like these we should all be united.  

As you can imagine this was very much a British European Council. And not only because of Brexit. Most of the other issues discussed were also "British".

Leaders took important decisions on the single market, the digital market, the capital markets union, on stemming irregular migration and on closer cooperation with NATO.

We agreed to step up work with African countries on returns of irregular migrants, and on measures that would stabilise the situation in Libya. EU- NATO co-operation was discussed in the presence of Jens Stoltenberg ahead of the Warsaw Summit and we agreed to enhance our relationship given unprecedented challenges from the South and East. We decided on steps to deepen the Single Market further, especially when it comes to the digital market. We will also continue to develop the capital markets union despite the recent turmoil.

Most importantly, Prime Minister Cameron outlined the results of Thursday's referendum. Respecting the will of the British people, we all recognized that a process of orderly exit was in everyone's, and especially, in the UK's interest. Prime Minister Cameron undertook that the decision to trigger Article 50 of the Treaty on European Union be taken by the new leadership in Britain. Our discussions were calm and measured. Leaders understand that some time is now needed to allow the dust to settle in the UK. But they also expect the intentions of the UK government to be specified as soon as possible. This was a very clear message which I believe Prime Minister Cameron will take back to London.

We also considered the post-Brexit economic situation in the presence of the European Central Bank President, who reassured us about the good and constant cooperation of central banks. However, it was also made clear that Brexit means substantially lower growth in the UK, with a possible negative spillover all over the world.

Finally, let me thank Prime Minister Rutte, who is finalising his presidency. Mark, thank you for your professional and hard work on migration and particularly on our deal with Turkey, but also for your key role in making the single market move forward. Talking about referendums and the Netherlands I would like to mention that the European Council also discussed the ratification of the DCFTA (Deep and Comprehensive Free Trade Area) for Ukraine. Leaders agreed to do their best to find a legally-binding solution that would allow Prime Minister Rutte to proceed with this ratification.

Tomorrow we will launch a discussion, in fact, a reflection process to give an impulse on the future of the EU. It will be our first informal meeting without the UK, among the 27 States. Thank you.

 

General : The choice made by the British people in the EU referendum needs to be implemented "as soon as possible” with Parliament’s full involvement, European Parliament president Martin Schulz said on 28 June at the EU summit in Brussels following the UK referendum. “A spell of prolonged uncertainty would be in no-one’s interest," he said, adding that the EU itself should also reform.

Source : © European Union, 2016 - EP

General : The choice made by the British people in the EU referendum needs to be implemented "as soon as possible” with Parliament’s full involvement, European Parliament president Martin Schulz said on 28 June at the EU summit in Brussels following the UK referendum. “A spell of prolonged uncertainty would be in no-one’s interest," he said, adding that the EU itself should also reform.

Source : © European Union, 2016 - EP

European Union leaders may not have the time or inclination to dwell on the global ramifications of Brexit. They should find a moment. Britain’s decision to leave the EU is sending tremors across the world.

The market turmoil triggered by a falling pound has prompted some of Asia’s biggest economies to warn that Brexit could cast a shadow over the world economy for years to come.

US Secretary of State John Kerry’s visit to London and Brussels is a high-profile indication of Washington’s worries as regards the future of the EU and a possible impact of the British decision on NATO. Meanwhile, global business leaders are already rethinking their export and investment strategies to take account of Britain’s imminent departure from the EU.

“Global business leaders are already rethinking their export and investment strategies”

More is at stake, however. The EU has long inspired nations across the globe with its message of reconciliation among former adversaries and as a project for peace and stability. In varying ways and to varying degrees, many have also looked to Europe in their own quest for regional integration and cooperation.

That reputation has now taken a body blow. Both Britain and the EU appear diminished to a closely-watching world. Those opposed to regional cooperation are likely to take heart from the EU’s difficulties. But it would be unfortunate if the EU crisis puts the brakes on other regions’ plans for integration.

Significantly, none of the EU’s foreign partners – except Donald Trump, the presumptive Republican nominee for US president and possibly Russian President Vladimir Putin – is applauding.

EU leaders may insist that the 27 member states will push ahead as planned or even speed up integration now that the perennial argumentative nay-sayer has abandoned ship. But as the bickering begins on Europe’s future direction and the speed of Brexit, nobody is fooled about Europe’s shattered unity.

“Europe’s important partners have invested heavily in Britain as a ‘gateway’ to Europe”

The world knows that the Union, which was already on flimsy ground over its messy response to the refugee crisis, the rise of populist leaders and governments and difficulties in the eurozone, has cracked. The EU as an inspiration for other countries seeking to work together for peace and prosperity has taken a possibly fatal beating. And as uncertainty over the future of both Britain and the EU looks set to continue, many have been left wondering if Europe – and the world – will ever be the same again.

That will depend on how British and EU leaders conduct themselves over the coming weeks and months. Britain’s pro-Leave campaigners have already sullied the country’s reputation by misinforming and misleading their citizens and by fanning the fires of hatred and racism. It will be tough to correct their mistakes – if that is indeed what the next British Brexit government intends to do.

EU leaders, meanwhile, face a stark choice: they can either listen to and respond to the real concerns of their citizens, including on immigration, and seek a dignified response to the latest crisis. Or – as many fear – they can engage in yet more squabbling over Europe’s future direction. The route they take will determine whether or not other eurosceptic movements will become even stronger in the days ahead and present their own blueprints for an EU exit.

Europe’s response will be watched carefully not just by the US where fears are growing of a Trump victory in the November presidential elections but also by China, India, Japan and Europe’s other important partners which have invested heavily in Britain as a “gateway” to Europe.

“The EU is a much larger trading bloc than Britain – and will continue to count for more on the world stage”

No responsible global power wanted Britain to leave the EU, and today no major country wants the EU to unravel. True, some countries may want to negotiate new trade pacts with Britain – but as the US and India have warned, such discussions will not be their top priority. The EU is a much larger trading bloc than Britain – and will continue to count for more on the world stage.

For Europe’s trading partners, Britain’s absence will be especially felt in EU discussions on trade agreements, whether bilateral free trade accords such as the Transatlantic Trade and Investment Partnership (TTIP) or the wider multilateral trading system. London has taken a strong stance in favour of granting Market Economy Status to China. It has also been among the lead players in the EU’s trade relations with many South Asian countries, including India, Pakistan and Afghanistan.

The departure of Britain as the EU’s prime military power is going to hit hard at a time when Europe is trying to push its security credentials, especially in Asia. A new EU “global strategy” which cannot rely on and use Britain’s wide network of global partners will appear less impressive.

In the end, however, once the market turmoil is over and the reality of Brexit sinks in, it is the blow to the EU’s reputation as an agent for change and transformation which will resonate most strongly across the world.

IMAGE CREDIT: CC / FLICKR – Ian

The post Brexit: the global fall-out appeared first on Europe’s World.

Plenary sessions : Opening the extraordinary session, European Parliament President Martin Schulz noted that this was the first time that a plenary session had been convened at such short notice, but also that the UK citizens’ decision to leave the EU was equally unprecedented. He warmly welcomed Lord Hill and thanked him for his work in the EU Commission and deciding to step down, having campaigned for Britain to remain in the EU. His statement was followed by standing ovations from both MEPs and Commissioners.

Source : © European Union, 2016 - EP

Plenary sessions : Opening the extraordinary session, European Parliament President Martin Schulz noted that this was the first time that a plenary session had been convened at such short notice, but also that the UK citizens’ decision to leave the EU was equally unprecedented. He warmly welcomed Lord Hill and thanked him for his work in the EU Commission and deciding to step down, having campaigned for Britain to remain in the EU. His statement was followed by standing ovations from both MEPs and Commissioners.

Source : © European Union, 2016 - EP

Following the vote for the UK to leave the European Union, some Frequently Asked Questions (FAQs) on the future of UK-EU relations in the referendum aftermath:

EU Referendum Statement, Number 10, CC-BY-NC-ND-2.0

Has the UK already left the European Union, as of the referendum result on Friday 24 June?

No. The UK will continue to be a member of the EU until it has formally withdrawn. This will presumably take place after the exit negotiations are complete. The withdrawal agreement will likely set out a specific date on which the exit will be official.

What relationship will replace the UK’s EU membership?

It is currently unclear what kind of relationship the UK will have with the EU. It will be for the next UK government to set out its vision for this relationship and its objectives for the negotiations. The EU (that is, the remaining 27 Member States) will also have its position on the shape of that relationship. The outcome will be a compromise between the two.

How long will the negotiations take?

It is unknown how long the negotiations to leave the EU will take. Once the procedure under Article 50 is invoked, there will be a two-year period for the negotiations to be completed. This period can be extended, if the UK and all 27 remaining EU Member States agree. If a withdrawal agreement is not concluded within this period, then the EU treaties and EU law would cease to apply to the UK and it would exit by default. The initial withdrawal agreement could also include provision for further negotiations on details of the actual relationship in certain areas. There could also be transition periods to the new arrangements, which would add to the length of time before the future relationship is fully in place.

Will the UK continue to be part of the Single Market?

It is not clear whether the UK will remain in the Single Market. It will be up to the UK government to articulate whether it wishes for the UK to stay in the market – and it is unknown whether it will do so. It will also be up to the remaining EU Member States to decide whether they wish for the UK to remain in the Single Market. There would also have to be a mechanism for this. At present, the only way to be in the Single Market is to be part of the European Economic Area (EEA), either as a member of the EU or a member of the European Free Trade Association (EFTA).

What will happen to EU citizens in the UK, and UK citizens in the rest of the EU?

The rights of UK citizens to live and work in the European Economic Area and Switzerland, and of EEA/Swiss citizens to live and work in the UK, will depend on the negotiations. If the UK were to remain part of the Single Market – including the free movement of people – there would be little change. If the UK is not part of this, then there might be future controls on movement between the UK and the EU. While it is not certain, it is unlikely that current citizens living in the UK or the rest of the EU would be forced to leave. The measures would likely apply to future movement.

Can the UK reverse its decision to leave the EU?

The decision to leave the EU rests with the United Kingdom. In theory, the UK could abandon its exit negotiations up until the point at which the withdrawal agreement(s) are signed, ratified and entered into force. Once the withdrawal is complete, the UK would need to reapply to join the EU like any other state. In the politics of the UK, the choice to leave could be overridden by another referendum or a general election in which the winning party pledged to keep EU membership. However, this does not seem likely at present.

What will happen to the parts of the UK that voted to remain?

The United Kingdom is the sovereign state which is the member of the European Union. When the UK withdraws from the EU, all parts of the UK, and Gibraltar, will leave. The question has been raised whether parts of a state can be in the EU and parts out of the EU. A precedent would be the Kingdom of Denmark – Denmark is in the EU, while the Faroe Islands and Greenland are not. However, these territories are comparatively small and physically separate from Denmark. Such a scenario would presumably be easier for Scotland, Northern Ireland or Gibraltar, but less so for London or other English and Welsh cities. Any arrangement would form part of the negotiations.

What will the economic consequences be?

For now, volatility in financial markets and in the value of sterling may continue. The most significant challenge to economic performance is uncertainty – it is unknown what relationship the UK will have with the EU. As a result, business activity, such as investment and expansion, may be put on hold while companies wait to see what the final arrangement will be. Others may not want to wait, and will simply abandon efforts or relocate outside of the UK. Once the agreement is complete, the health of the economy will depend in part on how businesses respond to it and the other factors in the UK’s economic environment.

What does the result mean for the UK’s place in the world?

The process for withdrawal from the EU, and the resulting changes in British politics, will dominate UK public life for the months and years ahead. On a practical level, the amount of work required from government, parliament and society on redefining the new relationship will be enormous. During that time, it is difficult to see how the UK could continue to maintain its current level of engagement and influence in the world. However, the UK remains a member of most major international organisations – such as the UN (where it is still a Permanent Member of the Security Council), IMF, World Bank, WTO, G7 and G20. Once its relationship with EU becomes clear and then takes effect, the UK will presumably be in a more solid position to find its new place in the world.

What will the EU do now?

The remaining 27 Member States of the EU will want to stabilise the European project. They are already keen to begin the UK’s withdrawal negotiations, in order to close that chapter in the EU’s history and then move on. In parallel to the negotiations, the remaining states will also presumably reflect on the future of the EU going forward. While the governments are broadly supportive of European integration as it stands, many publics are more sceptical. It is possible that the EU could either integrate more, return powers to states or do a combination of both in different areas. Historically, the EU has had a poor record of changing course, even in the face of objections or events. It remains to be seen whether the departure of one of its biggest and most powerful members will serve as an impetus for such change.

This article was originally published as part of the free online course Towards Brexit? The UK’s EU Referendum.

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Shortened link: britainseurope.uk/24

How to cite this article:

Salamone, A (2016) ‘Brexit: Frequently Asked Questions’, Britain’s Europe (Ideas on Europe), 28 June 2016, britainseurope.uk/24

The post Brexit: Frequently Asked Questions appeared first on Ideas on Europe.