European Union workers arriving in the UK during the transition period after Brexit will enjoy the same settlement rights as those already living in Britain, it was announced in Brussels on Monday.

Full residency rights for EU citizens during transition

The UK government had been suggesting restricted rights for those arriving after Britain’s exit in March next year but now Brexit Secretary David Davis and Michel Barnier, the chief EU negotiator, have agreed that full residency rights will be granted.It was also agreed that the transition period will run until the end of 2020, not until March 2021 as the British had wanted, and that the UK would now be able to reach free trade agreements with non-EU nations, as well as the EU itself, during that period – something Brussels had originally opposed – although they will not be able to come into force until the beginning of 2021 at the earliest.

Post-Brexit Irish border question remains open

However, there was no final agreement on what would happen to the border between the Republic of Ireland and Ulster after Brexit.Mr Barnier said, “What we are presenting to you today... is a legal text – a joint legal text which constitutes in my mind a decisive step because we were able this morning to agree, and after all those days and nights of hard work, on a large part of what will make up an international agreement for the ordered withdrawal of the United Kingdom.“A decisive step remains a step, we are not at the end of the road and there is a lot of work still to be done on important subjects including Ireland and Northern Ireland.”

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However, Mr Barnier said the two sides had agreed how the issue would be dealt with during the remaining negotiations and that it had been agreed that the EU’s “backstop position”, which would see Northern Ireland effectively remain part of the single market if there was no alternative agreement, “will apply unless and until another solution is found”.In London, Prime Minister Theresa May said, “I think the message people can take from this is that prior to December people questioned whether we would get agreement then. We did. People questioned whether we would get agreement now. We have.“I think what this shows is that with good will on both sides, working hard, we can get an arrangement for the future which will be in the interests of the UK and in the interests of the European Union and it will be good for all parts of the UK.”

Transitional agreement adds sense of stability for businesses

Mr Davis maintained that the agreement on a transition period would give businesses the stability they had seeking. “They now have certainty about the terms that will apply immediately after our withdrawal. Meaning that they can continue to operate and invest with confidence as the design of our future partnership with the European Union becomes clear.“We must seize the moment and carry forward the momentum of the past few weeks. The deal we struck today, on top of that agreed in December, should give us confidence that a good deal for the United Kingdom and the European Union is closer than ever before.”On the Irish border, Mr Davis said, “We agree on the need to include legal text detailing the ‘backstop’ solution for the border between Northern Ireland and Ireland in the withdrawal agreement that is acceptable to both sides.“But it remains our intention to achieve a partnership that is so close as to not require specific measures in relation to Northern Ireland, and therefore we will engage in detail on all the scenarios set out in the joint report.“We have also reached consensus on the full set of issues which need to be addressed in any solution in order to avoid a hard border, which is why, last week, we set out a work programme to tackle them.“There are also some elements of the draft protocol – such as the Common Travel Area – on which we agree. So while there is as yet no agreement on the right operational approach, we know what we need to do and we’re going to get on with it.” Commenting on the agreement Carolyn Fairbairn, CBI Director-General, said, “Agreeing transition is a critical milestone that will provide many hundreds of businesses with the confidence to put their contingency planning on hold and keep investing in the UK.“This is what businesses have been calling for since last summer. It brings a welcome gift of time for firms on both sides. While some sectors may need more than 20 months to prepare for post-Brexit life, this is a victory for common sense that will help protect living standards, jobs and growth. It shows what can be achieved when people and prosperity are placed above politics and ideology.“With a year to go, this breakthrough must set the pattern for the future. Other hurdles on the Brexit path now need to be cleared in the same spirit, including urgent resolution of the Irish border.“A year ago both sides ruled out an early transition deal; today both sides have agreed one. The voice of prosperity and evidence from the business community is being heard. This spirit of compromise must be maintained, as tough choices lie ahead on the route to a final deal."

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Read more about the future of the UK industry in the Winter issue of our magazine 

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