U.K. Prime Minister Theresa May failed to provide solid details on what this period would ultimately look like even while she said that her government wants a transition phase before her country leaves the EU completely.
Adapting to a world where the United Kingdom no longer belongs to the EU will require some amount of time for businesses and citizens, said May speaking to an audience in Florence, Italy. She said that a new immigration system which could take two years to implement will be one of the key changes.
"It will take time to put in place the new immigration system required to re-take control of the U.K.'s borders. So during the implementation period, people will continue to be able to come and live and work in the U.K.; but there will be a registration system – an essential preparation for the new regime. As of today, these considerations point to an implementation period of around two years," May said.
Such a transition period should be agreed as soon as possible and be time-limited, May added.
"And at the heart of these arrangements, there should be a clear double lock: A guarantee that there will be a period of implementation giving businesses and people alike the certainty that they will be able to prepare for the change; and a guarantee that this implementation period will be time-limited, giving everyone the certainty that this will not go on for ever," the prime minister stated.
During the proposed transition period, EU law will continue to be applied in the U.K. — something that might not please some Brexit voters, the EU said while agreeing to work on a transition period, the European Union said at the start of the Brexit negotiations.
"Markets might find some comfort in the promise that Britain will pay its dues and could de facto stay inside the single market for the two year transitional period, but as expected, there is still no detail on the key issues that could take the negotiations forward in a serious way," Kallum Pickering, senior U.K. economist at Berenberg, said.
"May looks to be keeping herself in the safe zone ahead of her party conference next month," he added.
A "creative and practical" solution for the country's exit from the European Union should be sought by both sides of the negotiation table, the prime minister said.
"We can do so much better than this," she said.
The hole that the U.K. will leave in the European budget once it leaves the bloc on March 29, 2019 has been one of the biggest worries for many EU members.
Even though she didn't specify any figures, May reiterated that London will fully comply with its financial commitments to the bloc. That bill will be 60 billion euros ($71.86 billion), at a minimum, initial calculations from the EU suggested.
(Source:www.cnbc.com)
Adapting to a world where the United Kingdom no longer belongs to the EU will require some amount of time for businesses and citizens, said May speaking to an audience in Florence, Italy. She said that a new immigration system which could take two years to implement will be one of the key changes.
"It will take time to put in place the new immigration system required to re-take control of the U.K.'s borders. So during the implementation period, people will continue to be able to come and live and work in the U.K.; but there will be a registration system – an essential preparation for the new regime. As of today, these considerations point to an implementation period of around two years," May said.
Such a transition period should be agreed as soon as possible and be time-limited, May added.
"And at the heart of these arrangements, there should be a clear double lock: A guarantee that there will be a period of implementation giving businesses and people alike the certainty that they will be able to prepare for the change; and a guarantee that this implementation period will be time-limited, giving everyone the certainty that this will not go on for ever," the prime minister stated.
During the proposed transition period, EU law will continue to be applied in the U.K. — something that might not please some Brexit voters, the EU said while agreeing to work on a transition period, the European Union said at the start of the Brexit negotiations.
"Markets might find some comfort in the promise that Britain will pay its dues and could de facto stay inside the single market for the two year transitional period, but as expected, there is still no detail on the key issues that could take the negotiations forward in a serious way," Kallum Pickering, senior U.K. economist at Berenberg, said.
"May looks to be keeping herself in the safe zone ahead of her party conference next month," he added.
A "creative and practical" solution for the country's exit from the European Union should be sought by both sides of the negotiation table, the prime minister said.
"We can do so much better than this," she said.
The hole that the U.K. will leave in the European budget once it leaves the bloc on March 29, 2019 has been one of the biggest worries for many EU members.
Even though she didn't specify any figures, May reiterated that London will fully comply with its financial commitments to the bloc. That bill will be 60 billion euros ($71.86 billion), at a minimum, initial calculations from the EU suggested.
(Source:www.cnbc.com)
