EU, UK negotiations may get prolonged

With Brexit impact hanging over Europe, European finance ministers’ warnings over adverse economic impact on the EU, were also loaded with a political sarcasm that the UK, which voted to leave at its own choice, risks becoming a “Little Britain” in the referendum’s aftermath. This is a clear signal to Scotland and North Ireland to remain in the EU. The ministers’ meeting came days after the International Monetary Fund (IMF) also warned that the Eurozone would grow at a slower pace in coming years because of political and economic uncertainty stemming from the Brexit vote.
Following a series of warnings on the Brexit, the IMF painted a gloomy picture of the Eurozone economy. In its annual report last week, IMF said it expects the GDP of the bloc to expand 1.6% this year, rather than 1.7% it predicted before the UK voted to leave the EU.
This was also echoed by the European Commission, the EU’s executive arm. It cautioned that growth for the eurozone in 2017 could end up at just 1.2
percent, instead of the official forecast of 1.8 percent.
Concerns within the eurozone over the effect of Britain’s exit plans range across key areas, including growth, investment, the banking sector and possible political risks.
To reduce such concerns, the EU officials are eager to start the Brexit process to define new relationship at the earliest by a new designated British Prime Minister, Theresa May, who will take office on Wednesday.
“The British government should notify as soon as possible its intentions with the EU under Article 50,” said Economics Affairs Commissioner Pierre Moscovici. European Commission economy chief Pierre Moscovici said May should trigger her country’s divorce from the EU as soon as possible.
In fact, ending 40 years of membership will not be easy as it will leave both parties with bruises.
Envisaging the Brexit scenario, Austrian Finance Minister Hans Joerg Schelling, said, “I think probably there will be a ‘Brexit-light’, so Scotland will not leave (the EU), probably Northern Ireland will stay in the union, and probably Great Britain becomes Little Britain.” This sarcasm reflects deep anger over the Brexit.
But Germany, which is a major trade partner for the UK, looks forward to serious engagement with the Britain without compromising the EU key principles — a move that will definitely make the talks very thorny.
It wants Britain to remain an important partner. EU member states, including Germany, underlined that the UK’s access to the EU’s single market depends on respect for key principles including the freedom of movement of EU citizens.
“The United Kingdom will need to quickly clarify how it wants its ties with the European Union to be in future,” German Chancellor Angela Merkel said.
But May insists immigration controls would have to be included in any deal for Britain to access the EU’s single market.
This means talks can extend for years between the two parties as the bone of contention ‘free movement’ remains top on the agenda.
With a new British PM in office, tough and long negotiations between London and Brussels will start to define a new relationship, with both keen to reduce ramifications of the Brexit.