THE Brexit deadlock was broken on Monday when the UK and EU agreed a 22-month transition period.
Brexit negotiators Michel Barnier and David Davis hailed the clause as a “decisive step” in reaching a complete agreement, though the UK’s border with Ireland is still a subject under discussion.
The transition period, which will run from March 2019 until December 2020, was welcomed by City Corporation policy chief Catherine McGuinness, who said the progress “lifts some weight off the shoulders of firms” in the UK and the EU.
“Before the announcement firms were peering over the precipice.
“They are now on firmer ground and we hope that the regulators will be tasked to work together by the UK and EU to underpin this political commitment and give firms the certainty they need.
But there are still a number of areas to be resolved – notably the Ireland and UK border issue.”
Mr Barnier also confirmed that an agreement was in place to protect the 4.5m EU citizens in the UK as well as the expat community living and working across Europe.
Ms McGuinness added: “Government has made great progress in recent weeks. It’s vital we find a resolution to this issue as soon as possible.”