EnA revised draft of EU negotiating documents, due to be agreed next week, will take a tougher line on the rights of EU citizens in the U.K., Reuters reports. The draft text ( paywall) will also include ongoing payments to EU budgetary commitments as well as continued oversight of some areas of the law by the European Court of Justice. The move follows the U.K. government’s move to hold an early election, as outlined in Panjiva research of April 18. The harsher line, combined with a (presumed) strong parliamentary position for the ruling Conservative Party in the U.K. may prolong talks.
The EU’s revised stance only has a minor change vs the previous text with regards to a future trade deal – it should “not endanger financial stability in the union”. This may be a reference to the high level of surpluses held by some countries with the U.K. Panjiva analysis of ONS data shows Belgium, the Netherlands, Slovakia, the Czech Republic and Hungary have the highest surplus as a proportion of their GDP. The key concept of only completing a trade deal once the U.K. has left the EU, with talks only starting once progress is made on the exit agreement, remains.
Source: Panjiva
