On 8 June 2018, the House of Lords’ European Union Committee published a report, UK-EU relations after Brexit, which identifies the high-level benefits that could derive from a new UK-EU relationship and the associated compromises. The report argued that the UK and EU have approached the Brexit negotiations with too great a focus on ‘red lines’, increasing the risk that they will be left without an agreement on the future relationship. It called on both sides to focus on identifying benefits, and areas of mutual interest, and to acknowledge that compromises will be needed.
As part of the report, the Committee published a colour-coded table showing the extent of agreement between the UK and the EU across all policy areas. In terms of financial services the Committee coloured the section red indicating clear disagreements, either on outcomes or means.
The Government’s long awaited White Paper on the future UK / EU relationship has still not yet materialised although on 4 June 2018 the UK Prime Minister’s Office said that it would be published shortly.
It had been expected that at the EU Council summit on 18/19 October 2018 there would be a broad political declaration concerning the future relationship. There has been debate as to how granular the declaration should be and some in the market believe that the declaration may not be finalised until the December 2018 Council summit.