European Council

On 19 May, the Council adopted a new European consensus on development. This joint statement by the three institutions (Parliament, Council and Commission) sets out a new framework for development cooperation for the EU and its member states.

"The new European consensus for development makes the EU even stronger to tackle today's challenges and promote sustainable development and eradication of poverty all over the world. Investing in  sustainable development is investing in our common security and prosperity", said Federica Mogherini, EU High Representative for foreign affairs and security policy.

"Today's agreement confirms the commitment of all member states to work together on a shared agenda and priorities for the EU's cooperation with all developing countries over the years to come. We are proud that the Maltese Presidency has succeeded in securing a consensus", added George Vella, Maltese Minister for foreign affairs.

The consensus is important given the crucial role of the EU in the area of development cooperation. The EU remains the world's largest development aid donor, providing more than half of assistance worldwide. The overarching goal is the eradication of poverty, by promoting good governance, human and economic development and tackling universal issues such as fighting hunger and preserving the world's natural resources.

The European consensus for development is the EU's response to the UN 2030 agenda for sustainable development. It sets out the main principles which will guide the approach of the EU and the member states to cooperation with developing countries over the next 15 years, as well as a strategy for reaching the sustainable development goals (SDGs). In line with the global strategy on the EU's foreign and security policy, the consensus will also help achieve the priorities of the EU's external policy.

The consensus is intended to respond to current global challenges which have a demographic, economic, social and environmental impact. Strengthening the resilience of states, societies and individuals is central to this approach. It seeks to bring about sustainable development and to accelerate transformation by placing an emphasis on cross-cutting elements of development policy such as gender equality, youth, investment and trade, sustainable energy and climate action, good governance, democracy, rule of law and human rights, and migration and mobility.

The consensus recommends increased coordination and coherence between the EU and its member states. In order to  achieve more effective results and make a greater impact, it proposes a tailored and differentiated approach when working with partners to promote joint programming and implementation, with the full involvement of civil society and other actors. It highlights the importance of development effectiveness, transparency, mutual accountability and ownership by all partners involved, as well as ensuring that all means are used to deliver on the SDGs.

Next steps

The European Parliament is expected to endorse the consensus on 31 May.

The joint statement will be officially signed by the President of the European Parliament, the Prime Minister of Malta, on behalf of the Council and member states, the President of the European Commission, and the High Representative, at the European Development Days on 7 June. It will then replace the current European consensus on development which was adopted in 2006.

On 18 May the Council adopted conclusions on security and defence in the context of the EU Global Strategy. The conclusions take note of progress in strengthening cooperation in the area of security and defence, and provide guidance for further work. The areas covered include:

 - Improving CSDP crisis management structures, in particular the ongoing work leading to the establishment of a military planning and conduct capability (MPCC) within the EU military staff (part of the EEAS) which will assume command of non-executive military CSDP missions (currently: EUTM Somalia, EUTM RCA, EUTM Mali), as agreed on 6 March 2017;

 - Strengthening CSDP cooperation with partner countries, with the aim to adopt a more strategic approach to Common and Security Defence Policy partnerships, in view of enhancing cooperation, with a focus on partner countries that share EU values, including the respect for international law, and are able and willing to contribute to CSDP missions and operations;

 - Capacity building for security and development (CBSD), in order to fully cover all the requirements needed to support partner countries in preventing and managing crises on their own;

 - Developing civilian capabilities and enhancing the responsiveness of civilian crisis management, including the possible creation of a core responsiveness capacity;

 - Reinforcing military rapid response, including EU battlegroups, with a view to developing further their modularity in a pragmatic way and to adapt as necessary the financing arrangements;

 - Deepening European defence cooperation, taking stock and providing guidance on the way forward on

•  an inclusive permanent structured cooperation (PESCO), which would allow those member states who are willing and able to collaborate further in the area of security and defence and which would, in turn, help generate new collaborative efforts, cooperation and projects.
• the possibility of a voluntary coordinated annual review on defence (CARD), which would be a process aimed at offering a better overview at EU level of defence spending, national investment and defence research efforts. This would support member states in delivering capabilities to tackle existing and future strategic trends and challenges, and actively promote enhance defence cooperation among member states.
• the European Defence Action Plan of the European Commission, which foresees new financial tools for capability development and defence cooperation in support of the European defence industry and technological innovation. 

Background 

On 14 November 2016, the Council adopted conclusions on implementing the EU global strategy in the area of security and defence. These conclusions set out the level of ambition in the form of the main goals the EU and its member states will aim to achieve in the area of security and defence. The Council set out three strategic priorities: responding to external conflicts and crises, building the capacities of partners, and protecting the European Union and its citizens. Progress was noted and further guidance provided through the Council's conclusions on 6 March 2017. 

The implementation plan on security and defence was presented by the High Representative, acting also in her roles as Vice-President of the European Commission and Head of the European Defence Agency, to member states. It is part of the follow-up to the EU global strategy on foreign and security policy, which was presented by the High Representative to the European Council on 28 June. The Council adopted conclusions on the global strategy on 17 October 2016. 

The implementation of the EU global strategy also includes further work on building resilience and an integrated approach to conflicts and crises, strengthening the nexus between internal and external policies, updating existing or preparing new regional and thematic strategies and stepping up public diplomacy efforts. 

Good evening. I have come to you today, to the President of the proud Republic of France, with a simple message: Europe needs your energy, your imagination, your courage. And when I say Europe, I am not thinking about the institutions or bureaucracy, but about millions of Europeans, who see your victory as a sign of hope. Hope for a Europe that protects, for a Europe that wins, for a Europe that looks to the future. I am talking about the French and Belgians, Poles and Germans, the Irish and the Greeks. Because from all the European states I hear voices of those who are regaining their faith in the European Union.

A strong EU, capable of being sovereign in relation to the external world, capable of protecting its values, culture and economic interests, capable of protecting its external border, is the best, and perhaps the only guarantee of national and state sovereignty and independence. We both believe that for rational and responsible patriots, there is no alternative to a united and sovereign Europe.

Words such as security, protection, dignity and pride must return to our political dictionary. There is no reason why, in public debate, extremists and populists should have a monopoly on these terms. Today they are cynically taking advantage of social fears and uncertainty, building their own model of security on prejudice, authoritarianism and organised hatred. Our response must be clear and decisive. And you are the best proof that this is possible, Mister President. Thank you.

On 21 March 2017, the Council adopted Council Decision (CFSP) 2017/496[1]. The Council Decision extends the existing restrictive measures until 22 March 2018. The measures in question are an assets freeze and a prohibition from making funds available regarding 15 individuals considered as responsible for the misappropriation of Egyptian State funds before 2011. 

The Candidate Countries Montenegro*, Serbia* and Albania*, the country of the Stabilisation and Association Process and potential candidate Bosnia and Herzegovina, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine and the Republic of Moldova align themselves with this Council Decision. 

They will ensure that their national policies conform to this Council Decision. 

The European Union takes note of this commitment and welcomes it. 

 [1] Published on 22.03.2017 in the Official Journal of the European Union no. L76, p. 22. 
*Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.

On 13 March 2017, the Council adopted Council Decision (CFSP) 2017/445 [1]. The Council Decision extends the existing restrictive measures until 15 September 2017. The measures in question are asset freezes and travel bans against persons and entities responsible for actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

The Candidate Countries Montenegro* and Albania*, and the EFTA country Norway, member of the European Economic Area, as well as Ukraine align themselves with this Council Decision.

They will ensure that their national policies conform to this Council Decision.

The European Union takes note of this commitment and welcomes it.

[1] Published on 14.03.2017 in the Official Journal of the European Union no. L67, p. 88.

* Montenegro and Albania continue to be part of the Stabilisation and Association Process.

The French people have elected you as their President.

It is a pleasure to extend my wholehearted congratulations on your election as President of the French Republic. On behalf of the European Council and personally, I wish you every success.

France has always played a central role in the construction and development of the European Union. With you as President, I am confident that France will continue to contribute constructively in solving our common challenges and maintaining our unity. France is essential for Europe, as Europe is for France.

I look forward to welcoming you at our next meeting of the European Council.

On behalf of the European Council, I wish to warmly congratulate you on your reappointment as Prime Minister of the Republic of Bulgaria.

I am confident that your government will provide Bulgaria with stability conducive to the continued development of your country as well as the European Union.

I am glad that we had the opportunity to hold a phone conversation shortly after your reappointment, in which, among other things, we discussed the situation in the former Yugoslav Republic of Macedonia. As a member of the European Union and upcoming holder of the Presidency of the Council of the EU, Bulgaria plays a particularly active role in supporting stability and strengthening the democratic processes in its neighbourhood.

I look forward to once again working closely with you, and I wish you every success.

Good afternoon. I am very pleased to welcome Prime Minister Erna Solberg today. In times like these, it is more important than ever to have a strong and close partner, like Norway. A partner who shares the same values, and with whom we can work together on common European challenges.

The European Union's relations with Norway are close and are continuing to evolve. The European Economic Area - of which Norway is a key member - has proved its value and strength over the past 25 years. It serves both the EU and Norway well, and will continue to do so.

Today, the Prime Minister stressed the importance of having a close dialogue in view of the upcoming Brexit talks. I reassured the Prime Minister that, as one of the EU's closest partners, we will have a close dialogue with Norway throughout the talks. That's what partners do.

We also discussed energy and climate cooperation. Our close cooperation is crucial for energy security and for the Energy Union objectives. And, above all, we are both determined to implement the Paris Agreement.

Let me make one comment as we wait for the confirmation from Washington regarding the US commitment to a better environment, including fighting climate change in line with the Paris Agreement. There are many ways in which nations can contribute to this fight, and they depend on national choices. No-one proves it better than Norway: how it is perfectly possible and rational to combine being an important supplier of gas and oil as well as being a front-runner in renewable energy. The Norwegian example should provide encouragement to our American friends, as the climate challenge we all face can only be addressed by common global action.

Today we confirmed our strong commitment to the transatlantic relationship, and to further strengthening security cooperation, including between NATO and the EU.

Prime Minister Solberg and I also discussed the conflict in Ukraine, and our relations with Russia. We remain firm and consistent in our approach towards Russia. We know who the victim is in this conflict, and we will continue working together to advance reforms and development in Ukraine. And we also cooperate when it comes to sanctions towards Russia.

And finally, let me make a general remark about Brexit. These negotiations are difficult enough as they are. If we start arguing before they even begin, they will become impossible. The stakes are too high to let our emotions get out of hand. Because at stake are the daily lives and interests of millions of people on both sides of the Channel. We must keep in mind that in order to succeed, today we need discretion, moderation, mutual respect and a maximum of good will. Thank you.

As part of the EU institutions' open day, the headquarters of the European Council and the Council of the European Union, the two institutions representing the member states of the EU, are opening their doors from 10.00 to 18.00 on Saturday 6 May, offering guided tours, activities and information stands.

Guided tours of the new Europa building

Accompanied by members of staff, visitors will be able to discover the new Europa building, which has been used for meetings of European ministers and heads of state since January 2017. Tours will take place from 10.00 to 17.00 in French, Dutch, German and English.

Film on the history of the European Council

Visitors will find out how the European Council, originally conceived as an informal ‘fireside chat’ between presidents and prime ministers, has turned into a key EU institution.

Member states' stand

The 28 member states will be represented at a joint stand, where visitors can learn how each country participates in the Union's work, and discover their cultures and scenery. Some member states, such as Cyprus, Ireland and Hungary, will also put on traditional dance and/or music sessions. For the full list of events on offer, see the open day website (link at the bottom of the page).

Area for children and young people: youngsters will be able to have fun learning more about Europe and the European Union, including during guided tours.

Council online: visitors will be encouraged to take part in interactive games, discover surprising facts about Europe, take photos and share their impressions of the Council with their friends on social media.

Practical information

The open day will be held in the Council’s two main buildings. Entry will be via the Justus Lipsius building, 175 rue de la Loi/Wetstraat, Brussels.

Owing to the alert level currently in place in Belgium, additional security checks will be set up around the institutions. To facilitate these checks, visitors are encouraged not to bring luggage or other bulky objects.

Visitors are also encouraged to use public transport. There will also be a small train running all day between the institutions in the European quarter.

Press access

To arrange easier access, media wishing to access the Council on the open day are asked to contact the press office.

On 3 May 2017, EU ambassadors approved the Council's position on a new, country-neutral methodology for assessing market distortions in third countries. They asked the presidency to open  negotiations with the European Parliament. 

The main objective is to detect and redress distortions to the market resulting from state intervention in other countries. The new methodology for calculating dumping is based on rules  established by the WTO anti-dumping agreement.

Today we gave our support to a new, non-discriminatory anti-dumping methodology that will help ensure that imported products are sold at a fair and equitable price in the EU, no matter where they come from.This will strengthen Europe's trade defence instruments and will help protect jobs and enhance competitiveness."

 Christian Cardona, the minister for the economy, investment and small business of Malta

The Council's position adopted today reflects to a large extent the main principles put forward by the Commission in its proposal presented in November 2016. It establishes a non-exhaustive list of examples which are used to identify significant market distortions, such as: 

• state policies and influence,
• widespread presence of state-owned enterprises,
• discrimination in favour of domestic companies,
• lack of independence of the financial sector,
• inadequate enforcement of bankruptcy, corporate or property laws.

When a significant distortion is recognised in an exporting country, the Commission will be able to correct it. It will set a price for the product by referring either to the costs of production and sale prices in a country with similar levels of economic development or to appropriate undistorted international costs and prices. 

The Commission will also draft specific reports on countries or sectors describing distortions. In line with current practice, it will be for EU firms to file complaints, but they will be able to use the Commission's reports to support their case. 

Timeline and next steps 

The new anti-dumping methodology runs in parallel with  a separate  negotiating process on the broader revision of the EU's trade defence instruments which was proposed in 2013. Following the European Council's call in October 2016 for unfair trade practices to be tackled in an efficient and robust way, the Council has worked on both files as a matter of priority by establishing its position in order to bring about a rapid conclusion to the negotiations.

As the proposal is subject to an ordinary legislative procedure, the Council and the European Parliament need to reach agreement on a final text. The Council will be able to begin "trilogue" discussions with the European Parliament on the basis of today's agreement  as soon as the Parliament determines its own negotiating position.

 

On 3 May 2017, EU ambassadors confirmed on behalf of the Council the informal agreement reached with the European Parliament on the proposal for a regulation amending regulation 1683/1995 laying down a uniform format for visas.

This regulation establishes a new common design for the visa sticker to update its security features in order to prevent forgery. The current visa sticker, which has been in circulation for 20 years, is considered to have been compromised given various serious incidents of counterfeiting and fraud.

“This is an important development - a more secure format of the visa sticker is another step forward in the fight against the counterfeiting of documents and therefore progress in our efforts to enhance the security of the EU and the Schengen area.”

Carmelo Abela, Minister for Home Affairs and National Security of Malta

Following this confirmation of the agreement, the text of the regulation will be submitted to the European Parliament for a vote at first reading and subsequently to the Council for adoption.

Ireland and the United Kingdom will not be subject to the application of the new measures, in accordance with the protocols annexed to the EU treaties. However, upon a request from these member states, the Commission shall enter into arrangements with them to exchange technical information in relation to the format for national visas issued by them.

Free press is vital for having a democracy that works. Today we celebrate the World Press Freedom Day in a difficult context for journalism. Freedom of expression and Freedom of the press are under increasing attacks around the world. 

Free, diverse and independent media are indispensable to promoting and protecting democracy worldwide. A free press and freedom of expression are among the very same foundations of democracy, contribute to stable, inclusive, and resilient societies and can help defuse tensions and contain conflicts. The EU supports the implementation of the 2030 Agenda for Sustainable Development, which includes ensuring universal access to information and protection of freedom of expression. 

Supporting independent, quality and ethical journalism is essential. By facilitating the free flow of quality and well-researched information on matters of public interest, and by acting as the “public's watchdog”, independent media are the basis of a participatory democracy and a tool to make governments accountable for their actions. The EU ensures that respect for freedom of expression is integrated in all EU policies and development programmes. The EU is notably funding specific projects in third countries enhancing quality of journalism, access to public information and freedom of expression. Since June 2015, the EU has supported at least 45 endangered Human Rights Defenders that promote the right of freedom of expression under its small grant scheme. 

The EU condemns the increase of threats and violations against journalists and media professional offline and in cyberspace. All states are expected to fulfil their global obligations to protect freedom of expression and the safety of journalists by providing a supportive legal environment and prosecuting all attacks against journalists. The EU consistently opposes - in bilateral contacts with third countries as well as in multilateral and regional fora - any legislation, regulation or political pressure that limits freedom of expression and takes concrete steps to prevent and respond to attacks against journalists and bloggers.

The EU Guidelines on Freedom of expression online and offline, adopted in 2014, and their continued implementation, reaffirm the EU's determination to promote freedom of opinion and of expression as rights to be exercised by everyone everywhere, based on the principles of equality, non-discrimination and universality, through any media and regardless of frontiers.

Good afternoon,

First of all, I want to underline the outstanding unity of all the 27 leaders on the guidelines for our negotiations with the UK. They were adopted immediately after we started the summit, which bodes well for the negotiations. We now have unanimous support from all the 27 Member States and the EU institutions, giving us a strong political mandate for these negotiations. Here I would like to thank the whole team who worked hard to prepare the guidelines, especially Secretary-General Jeppe Tranholm-Mikkelsen, Piotr Serafin and Didier Seeuws.

We are united not only on the substance, but also on the method of conducting the Brexit talks. I am referring here to the so-called phased approach, accepted by the leaders today. This means that before negotiating our future relations with the UK, we must first achieve sufficient progress on citizens' rights, finances and the border issue in Ireland. It is too early to speculate on when this might happen. However, it is important to highlight that it will be for the EU leaders to assess, and decide, if sufficient progress has been made. And this will be a unanimous decision of all the 27 heads.

Let me now focus on our priority number one, namely citizens, whose rights we want to respect and secure in the first place. Today's discussion made clear that when it comes to reaching a decision on citizens' rights, not only speed is of the essence - but above all, quality, as so many people's lives depend on it. We are talking about four and a half million people: Europeans residing in the UK, and Britons living on the continent. Over the past weeks, we have repeatedly heard from our British friends - also during my visit in London - that they are ready to agree on this issue quickly. But I would like to state very clearly that we need real guarantees for our people to live, work and study in the UK, and the same goes for the British. The Commission has prepared a full list of rights and benefits that we want to guarantee for those affected by Brexit. In order to achieve sufficient progress, we need a serious British response. I want to assure you that as soon as the UK offers real guarantees for our citizens, we will find a solution rapidly.

Thank you.

Good morning. Let me just say three things.

First. We all want a close and strong future relationship with the UK. There's absolutely no question about it. But before discussing the future, we have to sort out our past. We will handle it with genuine care, but firmly. This is, I think, the only possible way to move forward.

We also need solid guarantees for all citizens and their families who will be affected by Brexit, on both sides. This must be the number one priority for the EU and the UK. And the Commission has already prepared a precise and detailed list of citizens' rights we want to protect.

And finally. We need to remain united as EU27. It is only then that we will be able to conclude the negotiations. Which means that our unity is also in the UK's interest. And as for now, I feel strong support from all the EU institutions, including the European Parliament, as well as all the 27 Member States. I know this is something unique, but I am confident that it will not change.

Thank you.

Saturday 29 April 2017
08.30 Meeting with Prime Minister of Slovenia Miro Cerar
09.50 Doorstep remarks ahead of the Special European Council (Art. 50)
10.00 European People's Party summit (Sofitel)
12.00 Meeting with Prime Minister of Denmark Løkke Rasmussen and European Commission President Jean-Claude Juncker 
12.30 Special European Council (Art. 50)

Tuesday 2 May 2017
12.00 Meeting with State Counsellor and Minister for Foreign Affairs of the Union of Myanmar Daw Aung San Suu Kyi 

Wednesday 3 May 2017
15.15 Meeting with Prime Minister of Estonia Jüri Ratas 

Thursday 4 May 2017
16.00 Meeting with Prime Minister of Norway Erna Solberg (press statements ± 16.45)

Friday 5 May 2017
Florence, Italy
14.15 Speech at the State of the Union 2017 Conference "Building a People's Europe"

European Council (Art. 50) guidelines following the United Kingdom's notification under Article 50 TEU

On 29 March 2017, the European Council received the notification by the United Kingdom of its intention to withdraw from the European Union and Euratom. This allows for the opening of negotiations as foreseen by the Treaty.

European integration has brought peace and prosperity to Europe and allowed for an unprecedented level and scope of cooperation on matters of common interest in a rapidly changing world. Therefore, the Union's overall objective in these negotiations will be to preserve its interests, those of its citizens, its businesses and its Member States.

The United Kingdom's decision to leave the Union creates significant uncertainties that have the potential to cause disruption, in particular in the United Kingdom but also, to a lesser extent, in other Member States. Citizens who have built their lives on the basis of rights flowing from the British membership of the EU face the prospect of losing those rights. Businesses and other stakeholders will lose the predictability and certainty that come with EU law. It will also have an impact on public authorities. With this in mind, we must proceed according to a phased approach giving priority to an orderly withdrawal. National authorities, businesses and other stakeholders should take all necessary steps to prepare for the consequences of the United Kingdom's withdrawal.

Throughout these negotiations the Union will maintain its unity and act as one with the aim of reaching a result that is fair and equitable for all Member States and in the interest of its citizens. It will be constructive and strive to find an agreement. This is in the best interest of both sides. The Union will work hard to achieve that outcome, but it will prepare itself to be able to handle the situation also if the negotiations were to fail.

These guidelines define the framework for negotiations under Article 50 TEU and set out the overall positions and principles that the Union will pursue throughout the negotiation. In this context, the European Council welcomes the resolution of the European Parliament of 5 April 2017. The European Council will remain permanently seized of the matter, and will update these guidelines in the course of the negotiations as necessary. Negotiating directives will be adjusted accordingly.  

I. Core principles

1. The European Council will continue to base itself on the principles set out in the statement of Heads of State or Government and of the Presidents of the European Council and the European Commission on 29 June 2016. It reiterates its wish to have the United Kingdom as a close partner in the future. It further reiterates that any agreement with the United Kingdom will have to be based on a balance of rights and obligations, and ensure a level playing field. Preserving the integrity of the Single Market excludes participation based on a sector-by-sector approach. A non-member of the Union, that does not live up to the same obligations as a member, cannot have the same rights and enjoy the same benefits as a member. In this context, the European Council welcomes the recognition by the British Government that the four freedoms of the Single Market are indivisible and that there can be no "cherry picking". The Union will preserve its autonomy as regards its decision-making as well as the role of the Court of Justice of the European Union.

2. Negotiations under Article 50 TEU will be conducted in transparency and as a single package. In accordance with the principle that nothing is agreed until everything is agreed, individual items cannot be settled separately. The Union will approach the negotiations with unified positions, and will engage with the United Kingdom exclusively through the channels set out in these guidelines and in the negotiating directives. So as not to undercut the position of the Union, there will be no separate negotiations between individual Member States and the United Kingdom on matters pertaining to the withdrawal of the United Kingdom from the Union.

3. The core principles set out above should apply equally to the negotiations on an orderly withdrawal, to any preliminary and preparatory discussions on the framework for a future relationship, and to any form of transitional arrangements.

II. A phased approach to negotiations

4.  On the date of withdrawal, the Treaties will cease to apply to the United Kingdom, to those of its overseas countries and territories currently associated to the Union, and to territories for whose external relations the United Kingdom is responsible. The main purpose of the negotiations will be to ensure the United Kingdom's orderly withdrawal so as to reduce uncertainty and, to the extent possible, minimise disruption caused by this abrupt change.

To that effect, the first phase of negotiations will aim to:

• provide as much clarity and legal certainty as possible to citizens, businesses, stakeholders and international partners on the immediate effects of the United Kingdom's withdrawal from the Union;
• settle the disentanglement of the United Kingdom from the Union and from all the rights and obligations the United Kingdom derives from commitments undertaken as Member State.

The European Council will monitor progress closely and determine when sufficient progress has been achieved to allow negotiations to proceed to the next phase.

5. While an agreement on a future relationship between the Union and the United Kingdom as such can only be finalised and concluded once the United Kingdom has become a third country, Article 50 TEU requires to take account of the framework for its future relationship with the Union in the arrangements for withdrawal. To this end, an overall understanding on the framework for the future relationship should be identified during a second phase of the negotiations under Article 50 TEU. We stand ready to engage in preliminary and preparatory discussions to this end in the context of negotiations under Article 50 TEU, as soon as the European Council decides that sufficient progress has been made in the first phase towards reaching a satisfactory agreement on the arrangements for an orderly withdrawal.

6. To the extent necessary and legally possible, the negotiations may also seek to determine transitional arrangements which are in the interest of the Union and, as appropriate, to provide for bridges towards the foreseeable framework for the future relationship in the light of the progress made. Any such transitional arrangements must be clearly defined, limited in time, and subject to effective enforcement mechanisms. Should a time-limited prolongation of Union acquis be considered, this would require existing Union regulatory, budgetary, supervisory, judiciary and enforcement instruments and structures to apply.

7. The two year timeframe set out in Article 50 TEU ends on 29 March 2019.

III. Agreement on arrangements for an orderly withdrawal

8. The right for every EU citizen, and of his or her family members, to live, to work or to study in any EU Member State is a fundamental aspect of the European Union. Along with other rights provided under EU law, it has shaped the lives and choices of millions of people. Agreeing reciprocal guarantees to safeguard the status and rights derived from EU law at the date of withdrawal of EU and UK citizens, and their families, affected by the United Kingdom's withdrawal from the Union will be the first priority for the negotiations. Such guarantees must be effective, enforceable, non-discriminatory and comprehensive, including the right to acquire permanent residence after a continuous period of five years of legal residence. Citizens should be able to exercise their rights through smooth and simple administrative procedures.

9. Also, the United Kingdom leaving the Union will impact EU businesses trading with and operating in the United Kingdom and UK businesses trading with and operating in the Union. Similarly, it may affect those who have entered into contracts and business arrangements or take part in EU-funded programmes based on the assumption of continued British EU membership. Negotiations should seek to prevent a legal vacuum once the Treaties cease to apply to the United Kingdom and, to the extent possible, address uncertainties.

10. A single financial settlement - including issues resulting from the MFF as well as those related to the European Investment Bank (EIB), the European Development Fund (EDF) and the European Central Bank (ECB) - should ensure that the Union and the United Kingdom both respect the obligations resulting from the whole period of the UK membership in the Union. The settlement should cover all commitments as well as liabilities, including contingent liabilities.

11. The Union has consistently supported the goal of peace and reconciliation enshrined in the Good Friday Agreement in all its parts, and continuing to support and protect the achievements, benefits and commitments of the Peace Process will remain of paramount importance. In view of the unique circumstances on the island of Ireland, flexible and imaginative solutions will be required, including with the aim of avoiding a hard border, while respecting the integrity of the Union legal order. In this context, the Union should also recognise existing bilateral agreements and arrangements between the United Kingdom and Ireland which are compatible with EU law.

12. The Union should agree with the United Kingdom on arrangements as regards the Sovereign Base Areas of the United Kingdom in Cyprus and recognise in that respect bilateral agreements and arrangements between the Republic of Cyprus and the United Kingdom which are compatible with EU law, in particular as regards safeguarding rights and interests of those EU citizens resident or working in the Sovereign Base Areas.

13. Following the withdrawal, the United Kingdom will no longer be covered by agreements concluded by the Union or by Member States acting on its behalf or by the Union and its Member States acting jointly. The Union will continue to have its rights and obligations in relation to international agreements. In this respect, the European Council expects the United Kingdom to honour its share of all international commitments contracted in the context of its EU membership. In such instances, a constructive dialogue with the United Kingdom on a possible common approach towards third country partners, international organisations and conventions concerned should be engaged.

14. The withdrawal agreement would also need to address potential issues arising from the withdrawal in other areas of cooperation, including judicial cooperation, law enforcement and security.

15. While the future location of the seats of EU agencies and facilities located in the United Kingdom is a matter for the 27 Member States to settle rapidly, arrangements should be found to facilitate their transfer.

16. Arrangements ensuring legal certainty and equal treatment should be found for all court procedures pending before the Court of Justice of the European Union upon the date of withdrawal that involve the United Kingdom or natural or legal persons in the United Kingdom. The Court of Justice of the European Union should remain competent to adjudicate in these procedures. Similarly, arrangements should be found for administrative procedures pending before the European Commission and Union agencies upon the date of the withdrawal that involve the United Kingdom or natural or legal persons in the United Kingdom. In addition, arrangements should be foreseen for the possibility of administrative or court proceedings to be initiated post-exit for facts that have occurred before the withdrawal date.

17. The withdrawal agreement should include appropriate dispute settlement and enforcement mechanisms regarding the application and interpretation of the withdrawal agreement, as well as duly circumscribed institutional arrangements allowing for the adoption of measures necessary to deal with situations not foreseen in the withdrawal agreement. This should be done bearing in mind the Union's interest to effectively protect its autonomy and its legal order, including the role of the Court of Justice of the European Union.

IV. Preliminary and preparatory discussions on a framework for the Union - United Kingdom future relationship

18. The European Council welcomes and shares the United Kingdom's desire to establish a close partnership between the Union and the United Kingdom after its departure. While a relationship between the Union and a non Member State cannot offer the same benefits as Union membership, strong and constructive ties will remain in both sides' interest and should encompass more than just trade.

19. The British government has indicated that it will not seek to remain in the Single Market, but would like to pursue an ambitious free trade agreement with the European Union. Based on the Union's interests, the European Council stands ready to initiate work towards an agreement on trade, to be finalised and concluded once the United Kingdom is no longer a Member State.

20. Any free trade agreement should be balanced, ambitious and wide-ranging. It cannot, however, amount to participation in the Single Market or parts thereof, as this would undermine its integrity and proper functioning. It must ensure a level playing field, notably in terms of competition and state aid, and in this regard encompass safeguards against unfair competitive advantages through, inter alia, tax, social, environmental and regulatory measures and practices.

21. Any future framework should safeguard financial stability in the Union and respect its regulatory and supervisory regime and standards and their application.

22. The EU stands ready to establish partnerships in areas unrelated to trade, in particular the fight against terrorism and international crime, as well as security, defence and foreign policy.

23. The future partnership must include appropriate enforcement and dispute settlement mechanisms that do not affect the Union's autonomy, in particular its decision-making procedures.

24. After the United Kingdom leaves the Union, no agreement between the EU and the United Kingdom may apply to the territory of Gibraltar without the agreement between the Kingdom of Spain and the United Kingdom.

V. Principle of sincere cooperation

25. Until it leaves the Union, the United Kingdom remains a full Member of the European Union, subject to all rights and obligations set out in the Treaties and under EU law, including the principle of sincere cooperation.

26. The European Council recognises the need, in the international context, to take into account the specificities of the United Kingdom as a withdrawing Member State, provided it respects its obligations and remains loyal to the Union's interests while still a Member. Similarly the Union expects the United Kingdom to recognise the need of the 27 Member States to meet and discuss matters related to the situation after the withdrawal of the United Kingdom.

27. While the United Kingdom is still a member, all ongoing EU business must continue to proceed as smoothly as possible at 28. The European Council remains committed to drive forward with ambition the priorities the Union has set itself. Negotiations with the United Kingdom will be kept separate from ongoing Union business, and shall not interfere with its progress.

VI. Procedural arrangements for negotiations under Article 50

28. The European Council endorses the arrangements set out in the statement of 27 Heads of State or Government on 15 December 2016.