Brexit Update from the past week -
Brexit—Transitional Arrangements
The Treasury Committee published a report, unanimously agreed by its members, on Brexit transitional arrangements. Highlighting the two broad possibilities for exit on 30th March 2019—no deal or a standstill transition—the report noted the dramatic difference between the two outcomes in terms of economic impact. In its conclusions, it asked the Government not to rule out a time-limited arrangement that covered EU rules beyond the single market and customs union, and retained direct effect and supremacy of EU law, if it “expedites the negotiations.” Ultimately, it stated, transition must be simple enough to “negotiate within a matter of weeks,” but that certain sectors, including financial services, would also require an “adaptation period” once the terms of the future relationship became clear. Picking up on written evidence submitted to the Committee by the City Corporation, the report acknowledged that a “detailed, legally binding agreement will not be in place until the Withdrawal Agreement is signed,” and highlighted the Corporation’s calls for a “strong political agreement at the December European Council or early in the first quarter 2018.”
Brexit—Citizens’ Rights
Immigration Minster Brandon Lewis appeared before the EU Justice Sub-Committee to give evidence on citizens’ rights. He welcomed the draft agreement between the UK and EU on phase one of the Brexit negotiations, arguing it gives “confidence and certainty” to EU citizens in the UK and UK citizens in the EU. Asked about the process for granting EU citizens ‘settled status,’ he told the Committee that he wanted “[A] simple, online process” that would cost no more than applying for an equivalent British document, such as a passport. The process would be even simpler, he said, for those who wished to exchange their permanent residency status for settled status. The Home Office’s presumption, he noted, would be in favour of granting settled status, to make everything as simple as possible. The system would be live on a voluntary basis by the second half of 2018, prior to implementation of any withdrawal agreement.