Brussels immediately laid down the law today as it set out a tough new negotiating position after EU leaders finally signed off on the Brexit divorce deal.
German Chancellor Angela Merkel said the next round of talks would be ‘tougher’ than the last 10 months after she and the other 26 EU leaders agreed Britain had made ‘sufficient progress’ on the divorce.
The EU is insisting on agreeing a transition deal before it will open full-blown trade talks. The delay will take until at least March.
EU Council President Donald Tusk offered a lifeline to Theresa May at a press conference, admitted ‘exploratory contacts’ on a future trade deal can begin immediately.
Official negotiating guidelines produced by Mr Tusk demand Britain keeps all EU law during the interim period – including freedom of movement, a ban on new trade deals and rulings from the EU court.
Britain has said the transition period should last no more than two years and Mrs May wants a trade deal ready to kick in by exit day on March 29, 2019.
In a tweet today, Mrs May said it was an ‘important step on the road to delivering a smooth and orderly Brexit and forging our deep and special future partnership’.
In a boost for the PM, veteran Tory Sir Bill Cash told MailOnline he endorsed her handling of the talks so far while leading Brexiteer Jacob Rees-Mogg said the EU had set out ‘hard-nosed’ demands and warned Mrs May to be ‘equally robust’.
Theresa May (pictured arriving in Brussels yesterday) has called on EU leaders to make rapid progress on trade talks as they meet today to finally agree they can start
At a press conference in Brussels today (pictured), Donald Tusk signalled a tough new round to the Brexit negotiations
Mr Tusk (centre with Estonian PM Juri Ratas left and Commission President Jean-Claude Junker right) offered a lifeline to Theresa May at a press conference, admitted ‘exploratory contacts’ on a future trade deal can begin immediately
Following the announcement, Mrs Merkel (right today with French President Emmanuel Macron) told a press conference : ‘We have made quite significant progress.’
EU Council President Donald Tusk today revealed EU leaders have finally agreed sufficient progress has been made on divorce issues to launch trade talks
Mrs May replied, declaring the moment an ‘important step on the road to delivering a smooth and orderly Brexit and forging our deep and special future partnership’
Speaking at a press conference to mark the end of the summit, Mr Tusk said: ‘Opening the second phase of our negotiations wouldn’t be possible without the unity of the EU 27, the hard work of Michel Barnier and the constructive effort of Prime Minister May.
‘As for the framework for our future relations, it is now time for internal EU preparations and explorative contact with the UK to get more clarity.
‘On that basis we should have guidelines and start negotiations next year. I trust that the unity on the EU side will continue.’
He added: ‘It’s for sure that the second phase will be more demanding, more challenging than the first.’
In a clear sign substantive trade talks are still months away, Mr Juncker told the press conference: ‘I think the real negotiations on the second phase [of Brexit] will start in March next year.
‘I cannot say when these negotiations will be concluded.’
Mrs Merkel told a separate press conference called alongside the French President that there had been ‘quite significant progress’.
On phase two she added: ‘That’s an even tougher piece of negotiation than we have had until now.’
She added: ‘The good news is that the 27 states have so far put in tremendous efforts and stood together and I’m very optimistic we will continue to go forward in quite the same spirit.’
At the same event, French President Emmanuel Macron also stressed the unity of the 27 EU member states.
He said: ‘We managed to keep the unity of the 27 and the integrity of the single market and compliance with our rules, and in future we will do what it takes to do the same.’
As the next phase begins, EU leaders are demanding Britain spells out exactly what it wants from the talks – despite Mrs May’s Cabinet have never agreed a position on the final deal it wants.
It was claimed today a Cabinet discussion planned for Tuesday on the final deal has been postponed until the new year. No 10 insisted the meeting would go ahead as planned but refused to comment on whether any decisions would be made.
As well as thanking Mr Tusk, Mrs May tweeted this afternoon: ‘We will deliver on the will of the British people and get the best Brexit deal for our country – securing the greatest possible access to European markets, boosting free trade with countries across the world, and delivering control over our borders, laws and money.’
Her Brexit Secretary David Davis added: Today is a good day for Brexit and an important step for Britain.
‘Thanks to hard work and determination, we have reached an important milestone and have achieved sufficient progress.
‘There is still lots of work to come but we are ready for the next stage.’
In a tweet announcing the decision, Mr Tusk declared: ‘EU leaders agree to move on to the second phase of Brexit talks.
‘Congratulations PM Theresa May.’
German Chancellor Angela Merkel appeared almost jubilant at the latest round of talks in Brussels today (pictured), carried out without Theresa May
EU negotiator Michel Barnier (left today) will now be given new negotiating guidelines for the next phase of talks
The remaining EU leaders gathered for a breakfast meeting on the eurozone today (pictured) before they formally decided that ‘sufficient progress’ has been made on the Brexit divorce
Sir Bill Cash, a Tory MP and leading Brexiteer, told Mail Online: ‘I think we have made a huge breakthrough by moving to phase two.
‘Frankly there are a number of matters which will be resolve in due course by negotiation, but the important principle is that fact that we have now moved past phase one.’
Sir Bill said ‘nothing is agreed until everything is agreed’ but added: ‘I think it was a substantial breakthrough and it means that Brexit is anchored.’
Senior Tory Jacob Rees-Mogg said: ‘As usual the EU has set out a hard nosed negotiating stance, we must be equally robust.
‘If the acquis, the ECJ and free movement remain we would not be in an implementation period but would still be de facto in the EU.’
Philip Davies, the Brexit-backing Tory MP for Shipley, told MailOnline: ‘My view has always been that the whole point of Article 50 was that was the transition period.
‘We seem now to have a double transition period, which I am not in favour of to be perfectly honest, but obviously the Prime Minister has a different view.
‘I don’t think anybody when they were voting last year thought we were going to have a transition period.’
Peter Lilley, the Tory former minister, told Sky News that a free trade deal could be easily struck if the EU wanted one – but said the bloc will want to punish Britain for leaving by offering a bad deal.
He said: ‘This will be the first trade agreement between two countries, two parties, which already have free trade.
‘It is therefore in principle much easier and much quicker than any previous trade agreement that has been negotiated.’
Ex-Ukip leader Nigel Farage was furious at developments.
He tweeted: ‘If the trade talks don’t start until March then why did Theresa May leave Downing Street so early last Friday?
‘We’ve been taken for mugs, no wonder the EU leaders applauded her last night.’
Asked about the EU negotiating guidelines, which say that the transition deal must be thrashed out before talks can move on to our future trading relationship, he said: ‘I think we will have to work out the transition deal.’
Liberal Democrat leader Vince Cable renewed calls for a referendum on the final deal.
‘Now comes the hard part,’ he said.
‘The outcome of these talks will affect jobs, living standards and prices for years to come.
‘Yet with just over a year to go, the Cabinet still can’t even agree on what they want the final deal to look like.
‘The people must have a say on the terms of any deal, including the option of an exit from Brexit.’
Mrs May this afternoon vowed to ‘deliver on the will of the British people’ and said she would get the ‘best Brexit deal for our country’
Brexit Secretary David Davis said this morning’s decision was a ‘good day for Brexit and an important step for Britain’
Ex-Ukip leader Nigel Farage was furious at developments and claimed Britain was ‘being taken for mugs’ by Brussels
Arriving back at the summit today, Mr Juncker warned there were no easy solutions to the talks.
Asked if there would be trade talks, he said: ‘I have extraordinary faith in the British Prime Minister.
‘She has agreed with me and Mr Barnier that the withdrawal agreement will first be formalized and will be voted on and then we will see.
‘The second phase will be significantly harder than the first and the first was very difficult.’
He added: ‘It is a difficult process and I’m still sad that our British friends are leaving the European Union.’
Returning to the summit this morning, Irish premier Leo Varadkar said Mrs May had received a warm reception, telling reporters ‘some people offered some good luck, merry Christmas remarks and there was a light round of applause after that’.
Hungarian PM Viktor Orban said Mrs May was a ‘very tough lady’.
After last night’s dinner, which ended at 1am after the leaders dined on Thursday on roasted langoustines followed by a main course of capon and a dessert of festive log ‘with a twist’, German Chancellor Angela Merkel praised the divorce deal.
‘Theresa May has made good offers that imply that the 27 will see sufficient progress tomorrow. But there remain many issues to be solved and we don’t have much time,’ Merkel said.
Today’s meeting included (from left) Cypriot President Nicos Anastasiades, Chief Brexit Negotiator Michel Barnier, European Commission President Jean-Claude Juncker, German Chancellor Angela Merkel and Belgian Prime Minister Charles Michel
Arriving back at the summit today, Mr Juncker warned there were no easy solutions to the talks.
As she left Brussels last night, Mrs May told reporters ‘we’ve had very good discussions. I’m looking forward to discussions on the future trade relationship and security relationship.’
A British official said May was ‘clear about wanting to move onto trade talks as quickly as possible’ when she spoke to the other leaders, telling them she wanted to approach the next phase with ‘ambition and creativity’.
Sources told the Sun today that British ministers would not now meet to discuss what they would ask for in the the trade talks.
One minister said: ‘It is delay on delay, and fudge on fudge. No 10 is going to have to get off the fence on this soon, and they know it’.
Another Cabinet source added: ‘The big question everyone is asking is, whose side is the PM on? So far, she hasn’t given anything away.’
Downing Street insisted today the ‘position has not changed’ and Cabinet ministers would still discuss Brexit.
The text rubber-stamped by the EU27 promises only work towards a ‘framework’ for a trade deal, with a wait until March before guidelines for the way ahead are produced.
The document leaves no doubt that a formal free trade agreement cannot be signed until after the UK has left.
First priorities will be to translate last week’s agreement on the ‘divorce’ issues of citizens’ rights, the Irish border and the UK’s £39 billion exit bill into a legally-binding Withdrawal Agreement and to work out the terms for a transition period of around two years.
It was clear that the two sides remain far apart on the question of how much progress can be made on trade by the date of Brexit on March 29 2019, with UK officials continuing to talk about having an agreement ready to sign the day after departure, while Brussels expects much of the detailed work to be done during transition.
Irish Prime Minister Leo Varadkar (pictured today at the EU summit) has said Ireland will be in lockstep with the EU during the negotiations
Swedish Prime Minister Stefan Lofven was among the leaders taking part in a round table meeting regarding Article 50 at an EU summit in Brussels today
Irish Prime Minister Leo Varadkar yesterday signalled full flown trade talks would not begin until at least March.
He said he expects the next three months of talks to be devoted to the transition deal, adding: ‘And once we have that done, we can then talk about the new trading relationship.’
Mrs May’s intervention at last night’s dinner comes came after Foreign Secretary Boris Johnson said the setback would not ‘for one second’ stop the Brexit process being completed in a ‘very successful and very timely way’.
‘I can’t believe for the life of me that Parliament will actually vote to stop or reverse the Brexit process or frustrate the will of the British people,’ said Mr Johnson at a press conference in London. ‘That’s just not going to happen.’
Wednesday night’s Commons defeat, on an amendment requiring MPs to be given a ‘meaningful’ vote on the final Brexit deal, was a serious reverse for the PM just days after she finally secured a breakthrough agreement on a divorce deal covering citizens’ rights, the Irish border and the UK’s £39 billion financial settlement.
But other EU leaders played down suggestions it had undermined Mrs May’s authority in Brussels, with Dutch PM Mark Rutte saying she still possessed ‘formidable stature here’.
But Luxembourg’s PM Xavier Bettel said it would ‘make life more complicated’ for her by imposing further constraints on the time she has available to secure a deal.
Arriving back at the summit today (pictured), Mr Juncker warned there were no easy solutions to the forthcoming talks on trade
German Chancellor Angela Merkel (pictured arriving back in Brussels today) has praised the draft divorce agreement struck between the UK and EU