Theresa May finally secures Brexit deal after late-night diplomacy but faces Tory fury over Brussels concessions and £40bn ‘divorce bill’
PM breaks the deadlock on the Irish border by vowing to 'align' rules with the EU, but Nigel Farage said the agreement paved the way for the 'next humiliation'
THERESA May has finally achieved a major breakthrough in the Brexit talks after tense all-night talks but faces Tory fury over concessions and a £40billion “divorce bill”.
The Prime Minister broke the deadlock on the Irish border by vowing to “align” rules with the EU and a flurry of calls to Dublin, Brussels and the DUP.
She held an early morning press conference with Jean-Claude Juncker where she revealed a major milestone had been reached allowing the talks to finally move onto the crucial second phase.
It had looked as though she had missed her chance to wrap up the first phase of divorce talks before the crunch EU Council summit next week.
But, with the Number 10 staff Christmas party going on around her, she made two phone calls to the DUP leader last night with a revised offer.
After speaking to Irish PM Leo Varadkar and Mr Juncker earlier in the evening, Arlene Foster backed down saying there had been “substantial changes” and agreed to a deal around midnight.
After just two hours sleep she boarded a plane at RAF Northolt at 4.30am with Brexit Secretary David Davis bound for the Belgian capital.
At a press conference after a meeting Mr Juncker said: “We have now made the breakthrough we needed.”
And Mrs May said that intensive talks over the past few days had delivered “a hard-won agreement in all our interests”.
What has been agreed?
Here are the key points of the joint report agreed by the UK and the EU this morning:
Citizens' rights
Reciprocal rights for EU citizens in the UK and Brits living abroad who are resident at the time of the UK's withdrawal, along with their family members.
They also get the right to bring in spouses, civil partners and children forming part of the family at the time of Brexit, as well as any children born or adopted after that date.
Provisions for citizens' rights will be incorporated in UK law, and will be monitored by the European Commission
European Court of Justice
For eight years after Brexit, UK courts will be able to refer cases involving EU nationals to the ECJ for interpretation.
ECJ to remain competent for judicial cases registered at the Luxembourg court up to the date of withdrawal, even if they carry on beyond the date of Brexit.
Irish border
Protecting the Good Friday Agreement and avoiding a "hard border".
If there is no trade deal, they will keep the existing single market and customs union rules on the island, but if there is no deal, the UK will ensure no new regulatory barriers develop between the two sides and that businesses in the province continue to enjoy "unfettered access" to the UK internal market.
The right for all Northern Irish people to take British or Irish nationality is preserved, as well as the Common Travel Area.
Financial settlement
The UK will keep paying into the EU budget up to the end of 2020 "as if it had remained in the Union";, and pay its share of outstanding unpaid EU commitments.
A so-called “divorce bill” to be "drawn up and paid in Euros" – expected to be around £35bn-£39bn.
Britain to receive a share of financial benefits that would have fallen to it as a member of the EU before 2020.
And we will honour commitments to fund schemes to assist refugees in Turkey and displaced people in Africa.
But the details of the deal are causing unrest among Brexiteers, even though at £35billion to £39billion the financial settlement is less than many had feared.
There is anger over accepting the power of European judges to rule on citizens' rights cases for years to come.
The ex-Ukip leader Nigel Farage said: “A deal in Brussels is good news for Mrs May as we can now move on to the next stage of humiliation.”
The leading pro-Brexit Tory John Redwood was unhappy with the deal, saying: “A good deal has to be better than this, otherwise the Government’s mantra that ‘No Deal is better than a bad deal’ should apply.”
And the former deputy PM Nick Clegg, an ardent Remainer, said it amounted to “game, set and match for the EU on money and EU citizens”.
But the agreement means the EU will recommend to the other 27 leaders at next week’s meeting “sufficient progress” has been made, and the UK can move onto talking about the vital transitional deal and also the long-term agreement on future trade.
And the Senior Cabinet Brexiteers Boris Johnson and Michael Gove gave their public blessing to the deal.
The Foreign Secretary – who previously said the EU could “go whistle” for any excessive financial demands – congratulated the PM for her “determination” in reaching the agreement.
While Mr Gove described it as a “significant personal political achievement for the Prime Minister”, which would make more money available for the NHS.
Arch Eurosceptic Iain Duncan Smith told the Sun: “The key thing is that it’s clear from this agreement that the EU and the Irish moved sufficiently for the British Government to be able to accept it.
“The parameters of this are much tighter than they were.
“The key element of this is that this is not a free trade agreement, it’s a base plate that is dependent on everything else happening.
“We are leaving the single market, we are leaving the customs union and we will be able to strike trade deals with the rest of the world.”
Timeline of a deal
After a topsy turvy week a deal has been made, but there were bumps along the way:
Monday morning:
Rumours abound a deal is close, after a draft document on the Irish border leaks ahead of Theresa May’s lunch with Jean-Claude Juncker
Monday lunchtime:
The meeting is held up for two hours after the PM breaks off to speak to Arlene Foster, after the DUP react angrily to the draft text
Monday afternoon:
In a humiliating climb-down the lunch ends with no agreement, the waiting press told there is “more work to do”
Tuesday:
The DUP play hardball, with Ms Foster refusing to come to London and not even speaking to Mrs May by phone
Wednesday:
The PM finally speaks to the DUP leader but is told there is “still a lot of work to be done” with little prospect of a deal happening this week
Thursday morning:
After being warned she has just 48 hours to get a deal, Irish PM Leo Varadkar said he was expecting a new draft text to be sent to the EU later in the day
Thursday afternoon:
EU Council leader Donald Tusk schedules a press conference for early Friday morning, raising prospects a deal may be back on
Thursday evening:
The PM’s chief whip sends series of tweets heavily hinting at potential movement of the talks onto phase two
Thursday night:
Mrs May revealed to be travelling to Brussels with David Davis for talks with Mr Juncker and Michel Barnier in the early hours
Friday morning:
After the meeting breaks up Mr Juncker’s chief of staff Martin Selmayr tweeted image of white smoke leaving a chimney, dropping another hint a deal had now been agreed
The PM admitted it had not been easy for "either side" but "welcomed the prospect of moving ahead".
Mrs May said: "I very much welcome the prospect of moving ahead to the next phase, to talk about trade and security and to discuss the positive and ambitious future relationship that is in all of our interests."
She said it included a financial settlement which was "fair to the British taxpayer". And the so-called “divorce bill” was later briefed to be between £35billion and £39billion, far less than had been feared, and a great deal lower than EU demands which had put the figure as high as €100billion.
It covers Britain's share of the EU's budget up to the end of 2020, as well as outstanding debts and liabilities for items such as the pensions of staff at European institutions.
It will be paid over several years and the exact figure is unlikely to be known for some time.
The PM also said the agreement would guarantee the rights of three million EU citizens in the UK "enshrined in UK law and enforced by British courts".
And most crucially she said there will be "no hard border" between Northern Ireland and the Republic, preserving the "constitutional and economic integrity of the United Kingdom".
On Ireland she said the agreement delivers on the principle, to which she and Irish leader Leo Varadkar committed themselves in talks on Thursday, that "there should be no barriers, either north/south or east/west".
The joint report says that in the absence of an overall trade deal, the UK will maintain "full alignment" with elements of the EU single market and customs union which support the economy of the island of Ireland and the Good Friday Agreement.
In a crucial passage, which appears to have been added to satisfy DUP concerns, it says "no new regulatory barriers" will be allowed between Northern Ireland and the rest of the UK, and that the province's businesses will continue to have "unfettered access" to the UK internal market.
The DUP leader Arlene Foster, who negotiated directly with Mrs May into the early hours, said Northern Ireland would now leave the single market and customs union and insisted there would be no border down the Irish sea, dividing Northern Ireland with the rest of the UK.
But she made clear there was "still more work to be done".
Mrs May has also published a letter to the people of the province, setting out six key commitments that “guided her during Brexit negotiations with the EU”.
And the Tory leader added that the agreement between the UK and the Commission, being published in a joint report, and would offer "welcome certainty" to businesses.
She later tweeted a video saying: "Today’s Brexit deal delivers:
- No hard border in Northern Ireland
- Secures a good financial deal for British taxpayers meaning more money for our priorities like housing, schools, and the NHS
- Secured the rights of EU citizens living here, and UK citizens living in the EU."
But in a provision likely to spark concerns among some backers of Brexit, the document says the European Court of Justice will continue to have a role overseeing the rights of EU citizens in the UK for eight years after we leave the bloc.
The pound hit a six-month high against the Euro on news of a deal this morning, as business expressed delight the deadlocked talks can finally move on.
It had looked bleak less than 24 hours ago, after both sides had said there was still some way to go to getting a deal done in time.
But hopes were raised when the EU Council president Donald Tusk announced yesterday evening he was calling an early morning press conference.
And the Government's chief whip Julian Smith sent a series of tweets last night which hinted at potential movement in the negotiations.
He wrote: "Theresa May has worked tirelessly this week to try to move EU negotiations onto the next stage in the National Interest", and added: "Theresa May has led very challenging negotiations this week with energy, persistence and drive."
Mr Smith went on to say: "I will continue to do everything I can to ensure that the views of Conservatives MPs are fully reflected in phase 2."
This morning Mr Juncker’s notorious chief of staff Martin Selmayr posted an image of white smoke leaving a chimney, dropping a massive hint a deal had now been agreed.
Cabinet backs the deal
Boris Johnson tweets: “Congratulations to PM for her determination in getting today's deal.
“We now aim to forge a deep and special partnership with our European friends and allies while remaining true to the referendum result - taking back control of our laws, money and borders for the whole of the UK.”
Penny Mordaunt: “Much cheer at news of EU deal at my visit to Portsmouth seafoods this morning to discuss a sustainable food strategy.
“The world is our oyster! Now let's discuss the things that matter to those we represent: trade and opportunities.”
Damian Green: “Breakthrough in Brussels. Big successful moment for Theresa May and UK.”
Michael Gove: “This agreement is a significant political achievement for the Prime Minister.”
Andrea Leadsom: “Well done Theresa May!”
Amber Rudd: “I am delighted we have got through phase one.
“There is going to be more to do but it shows under Theresa May's leadership we are able to have successful negotiations and take forward this really important step of negotiating our exit from the EU."
Minutes later his boss appeared with the PM to deliver the news, which eases the pressure on Mrs May this weekend.
There has been delight among many Cabinet ministers, with several tweeting their congratulations to the PM.
One Tory MP even posted a picture of himself riding a horse through a snowy field, saying there is a “long way to go on Brexit”.
Guy Opperman added: “And trade talks will be tough but today’s breakthrough is genuine sunshine on a winter’s day.”
But Nigel Farage said on Twitter: "A deal in Brussels is good news for Mrs May as we can now move on to the next stage of humiliation."
And Arron Banks, who spent millions funding the Brexit campaign, said the PM has “betrayed the 17.4 million Leave voters”.
He said: “Under Theresa May, we are leaving the European Union in name only.
“If anyone in the Conservative Party has any integrity or sense of duty left, we call on them now to save Brexit by triggering a leadership contest.
“Tory backbenchers, get writing to the 1922 committee and help save your country. She has got to go!”
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Mr Juncker thanked the PM "for her determination" as he announced the Brexit breakthrough, and also praised the "extremely hard and skilful work over the last weeks and months" of the negotiators.
He said of the joint report the commission is about to publish: "Prime Minister May has assured me that it has backing of the UK Government.
“On that basis I believe we have now made the breakthrough we needed.”
Ireland's deputy prime minister Simon Coveney said his government was content at assurances it had achieved about avoiding a hard border, and said the deal "fully protected" the Good Friday Agreement.
He said: "Ireland supports Brexit negotiations moving to phase two now that we have secured assurances for all on the island of Ireland.”
PM puts her pledges in writing
Here is Theresa May's full statement on 'six commitments to Northern Ireland'.
Today I agreed a joint report between the Government of the United Kingdom of Great Britain and Northern Ireland and the European Union on the progress of our negotiations.
This covered the rights of EU citizens living in the UK and UK citizens in the EU; our financial settlement with the EU; and ruling out a hard border between Northern Ireland and Ireland.
This progress now enables the UK Government to move to the next phase of negotiations. This next phase will focus on securing the deep and special partnership between the United Kingdom and European Union that we all want to see.
As a Prime Minister who hugely values Northern Ireland's position within our United Kingdom - and believes passionately that the United Kingdom is stronger and better together - I want to set out six key commitments to Northern Ireland, principles that have guided me in the negotiations with the EU.
These commitments are consistent with our steadfast support for the Belfast Agreement and its successors; the principles that underpin them; the institutions they establish; and, the rights and opportunities they guarantee for everyone.
This Government will continue to govern in the interests of the whole community in Northern Ireland and uphold the Agreements that have underpinned the huge progress that has been made over the past two decades.
First, we will always uphold and support Northern Ireland's status as an integral part of the United Kingdom, consistent with the principle of consent.
The Government I lead will never be neutral when it comes to expressing our support for the Union.
Second, we will fully protect and maintain Northern Ireland's position within the single market of the United Kingdom. This is by far the most important market for Northern Ireland's goods and services and you will continue to have full and unfettered access to it.
Third, there will be no new borders within the United Kingdom of Great Britain and Northern Ireland. In addition to no hard border between Northern Ireland and Ireland, we will maintain the Common Travel Area throughout these islands.
Fourth, the whole of the United Kingdom, including Northern Ireland, will leave the EU customs union and the EU single market. Nothing in the agreement I have reached alters that fundamental fact.
Fifth, we will uphold the commitments and safeguards set out in the Belfast Agreement regarding North-South Co-operation. This will continue to require cross-community support.
Sixth, the whole of the United Kingdom, including Northern Ireland, will no longer be subject to the jurisdiction of the European Court of Justice.
These negotiations are crucial for the future of Northern Ireland and the whole United Kingdom. Whether you voted Leave or Remain, I am determined to deliver an outcome that works in the best interests of everyone across the United Kingdom.