Brexit talks enter critical phase: What you need to know

Brexit negotiations between Britain and the European Union enter a critical stage in December.

Prime Minister Theresa May will present an offer on Britain’s divorce from the bloc that she hopes the remaining 27 EU leaders accept as sufficient to move talks forward to a new phase: the future UK-EU relationship.

To do so she must compromise, angering hardliners within her own Conservative party, and strike a deal on the Irish border acceptable to both Ireland – which can veto progress – and the DUP, the small Northern Irish party whose support she relies on for a majority in parliament.

The story so far

Britain voted to leave the EU on 23 June, 2016 by a margin of 51.9 percent to 48.1 percent. The country is scheduled to formally leave the bloc at 11 p.m. on March 29, 2019, but a transition deal to prevent a cliff edge divorce is expected – if a deal can be struck.

Discussions between the UK and the EU officially began on June 19, 2017. Representatives from the sides – led by David Davis for the UK and Michel Barnier for the EU – have met monthly to discuss Britain’s separation from the bloc, although progress has been faltering.

The UK's Brexit Secretary David Davis and chief EU Brexit negotiator Michel Barnier address a joint news conference in Brussels, Belgium on November 10, 2017.

May made key interventions in a bid to push negotiations forward, most notably a “Florence speech” in which she confirmed Britain wanted a transition period, would pay a financial settlement, and would offer legal protections to EU citizens living in the UK.

Negotiations were punctuated by a snap UK election intended to strengthen May’s negotiating hand, but which ultimately weakened her.

The loss of a Conservative majority and the deal struck with the DUP has had far-reaching consequences, complicating agreement over the Irish border.

The sticking points

Britain is desperate to move talks on to its future relationship with the EU – and crucially trade ties. However, EU leaders must first agree that “sufficient progress” has been made on the three key aspects of phase one talks.

Irish border: Brexit will mean a 499-kilometer hard border between the UK and the EU, in the shape of the Irish border. How it will operate in terms of trade, movement and security is intensely sensitive and could have grave political consequences.

Financial settlement: Britain must agree a so-called “divorce bill” to pay its financial commitments to the EU. A compromise of around 50 billion euros over about 40 years is anticipated, although any payment will be met by resistance from hardliners within May’s Conservative party.

Citizens’ rights: Almost three million people from other EU countries currently live in the UK, while more than one million Britons reside elsewhere in the bloc. The residency rights of these people post-Brexit must be agreed.

The key dates

• December 4 : Theresa May meets European Commission President Jean-Claude Juncker and chief Brexit negotiator Michel Barnier to present the UK’s updated offer on the three main issues from phase one of Brexit talks: the Irish border, financial settlement and citizens’ rights.

• December 6 : European commissioners discuss whether to recommend to EU leaders that “sufficient progress” has been achieved to start talks on trade and transition arrangements.

• December 14-15 : EU leaders, meeting at an EU Council summit, will decide if “sufficient progress” has been made on the three main issues to proceed to phase two of negotiations.

• 2018 : Talks on the future relationship between the UK and the EU – including trading ties – will begin if an agreement on phase one is struck.

• March 29, 2019 : Britain is scheduled to leave the European Union and a transition period is expected to begin.

(CGTN)