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European Union asks for more clarity from Britain on future relationship after Brexit

European Union asks for more clarity from Britain on future relationship after Brexit

"It is not crystal clear how a potential exclusion process will function", European Commision Vice President Jyrki Katainen told a news conference, saying he had discussed the issue with France and Japan.

May and EU27 leaders is set to hold a new round Brexit negotiation on March 22 and 23, with hopes for the consolidation of a transition deal immediately following March 29, 2019, when Britain will become a third country.

Accepting that UK-based banks will lose their passporting rights to provide services across the EU, May promised more details shortly on how the United Kingdom government envisions financial services as part of a comprehensive trade agreement. "The parties shall, in full mutual respect and good faith, assist each other in carrying out tasks which flow from this agreement".

As John Springford of the UK Centre for European Reform wrote recently: "Theresa May must choose two of the following three options: an exit from the single market and customs union, no hard border with Ireland, and an all-UK approach to Brexit".

Last summer, during an extended trip to Ireland, I, on a whim, rented a vehicle and undertook a drive along much of the Irish border. Understandably, given its inherently global nature and reliance on cross-border trade, the financial services sector would be worst hit in the UK.

"The time will come when you regret your decision", the president of the European Commission said, as Nigel Farage laughed and shook his head in disbelief.

The British chancellor Philip Hammond has already announced that he wants to include a seperate section for financial services in a future Brexit trade deal.

Agreeing a transition period after Britain's formal departure from the European Union bloc by next week is tricky, as London and Brussels are at loggerheads over how to organise the border between the Republic of Ireland and British province Northern Ireland.

"And I do believe that rationality, common sense will win the day if we conduct ourselves with decorum and patience and I think therefore it's in all our interests to keep the temperature down".

European Union leaders have been pressing British Prime Minister Theresa May to clarify what she wants before they agree their position on the future economic partnership at a summit later this month. 72 per cent of trade in and out of Belfast Harbour is to Great Britain and less than one fifth to the EU.

Sinn Féin's Martina Anderson said: "Paragraphs 55 and 56 are ensuring there will be no hardening of the border in Ireland, the Good Friday Agreement will be preserved in all of its parts, the backstop, which will operationalised, is the bottom line and there will be no reduction of our rights".