Donald Tusk, the president of the European Council, yesterday sent out a nine-page document of “draft guidelines” to the EU’s 27 governments to be the basis for negotiations.
The ten red lines are:
1. Divorce first, trade later
The guidelines state that “we must proceed according to a phased approach giving priority to an orderly withdrawal” before there can be any discussion on a future trading relationship.
Theresa May must convince all 27 EU leaders that she has made “sufficient progress” on paying its bill and citizens’ rights before an “overall understanding” on a future relationship can be reached.
2. Pay up
By autumn Britain must “settle disentanglement” and “all the rights and obligations” of being an EU member, including a bill ranging from £25 billion to £60 billion to cover “all legal and budgetary commitments as well as liabilities”.
3. Guarantee rights for EU nationals
European governments will demand that Britain agrees “reciprocal guarantees” that are “enforceable and non-discriminatory” for the three million EU nationals living in Britain. This includes the right to bring spouses and family into Britain and to claim in-work benefits or take child benefits back home.
4. No side deals
The EU will stop London playing divide and rule or negotiating deals with Berlin, Paris or any other capital.
5. No special deals for the City or carmakers
“Preserving the integrity of the single market excludes participation based on a sector-by-sector approach,” said the guidelines.
6. UK loses any access to EU free-trade deals
Leaving the EU means that “the UK will no longer be covered by agreements concluded by the union”, meaning that free-trade deals with countries such as South Korea or Canada will cease to apply.
7. Transition deal comes at a price
The EU said that any transition deal would be under the full control of EU judges and require continued British contributions to Brussels.
8. Ireland and the northern border
“Existing bilateral agreements” such as the common travel area could continue, but Irish citizens cannot be privileged above any other EU national.
9. EU judges: room for compromise
The EU notes that the exit deal will need “appropriate dispute settlement mechanisms”.
10. No “Singapore model”
The UK could not become a low-tax, low-regulation nation. Negotiation “must ensure a level playing field in terms of competition and state aid and must encompass safeguards against unfair competitive advantages through, inter alia, fiscal, social and environmental dumping”.