With Britain just one year away from leaving the EU, the transition deal agreed between the two sides is viewed as a key element to absorbing the Brexit shock.
British Prime Minister Theresa May kick-started divorce proceedings one year ago, and March 29 next year, has since been set as the date the UK will leave the bloc.
Early optimism quickly faded of agreeing on the details of the historic separation, in addition to the complex deal on a future trade relationship within just two years.
The two sides agreed a transition period as a solution, giving citizens and businesses greater certainty while also allowing London and Brussels more time to tie up post-divorce plans.
“The transition is simply to allow us to do the stuff we don’t have time to do [within two years]... We’ll be ready for transition, but we won’t be ready for after transition,” said Anand Menon, a professor of European politics at King’s College London.
Britain has agreed to pay into the EU budget during the transition and will be able to continue to access to the European single market, but will have no decisionmaking powers.
On Brussels’ insistence, freedom of movement for EU citizens is also to continue as before.
The short-term solution was signed after tense negotiations in Brussels and some fear it is merely delaying problems which are incredibly hard to resolve.
With the future beyond 2020 uncertain, businesses have already started preparing for the possibility of delays in signing a trade deal or a breakdown in talks between Brussels and London.
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