Luxembourg Withdrawal Agreement: What You Need to Know

The Luxembourg Withdrawal Agreement refers to the Brexit negotiations between the Luxembourg government and the United Kingdom. The agreement covers a range of issues related to the UK`s withdrawal from the European Union. Here`s what you need to know about the Luxembourg Withdrawal Agreement.

What is the Luxembourg Withdrawal Agreement?

The Luxembourg Withdrawal Agreement is a treaty signed between the EU and the UK to regulate the UK`s withdrawal from the EU. The agreement covers a wide range of issues, including citizens` rights, the financial settlement, and the Irish border. The agreement was approved by the EU leaders in November 2018 and by the UK Parliament in January 2019.

What are the key points of the Luxembourg Withdrawal Agreement?

Citizens` rights:

One of the most important issues covered by the Luxembourg Withdrawal Agreement is the protection of citizens` rights. The agreement guarantees that EU citizens living in the UK and UK citizens living in the EU will be able to keep their residency, employment, and social security rights. Both sides have also agreed to set up a system to enforce these rights.

The financial settlement:

The EU and the UK have agreed on a financial settlement of around €43 billion. This payment covers the UK`s outstanding financial obligations to the EU, such as the budget commitments and pension liabilities.

The Irish border:

The Luxembourg Withdrawal Agreement includes a “backstop” arrangement to prevent a hard border between Northern Ireland (part of the UK) and the Republic of Ireland (an EU member state). The backstop would create a single customs territory between the EU and the UK, with Northern Ireland following some EU rules to maintain an open border.

What happens next?

The Luxembourg Withdrawal Agreement is just the first step in the Brexit process. The UK and the EU are currently in the transition period, which started on 1 February 2020 and will end on 31 December 2020. During this period, the UK will continue to follow the EU`s rules and regulations, but it will no longer be a member of the EU`s institutions.

The UK and the EU are currently negotiating a new trade deal to govern their future relationship after the transition period ends. However, the negotiations have been complicated by the COVID-19 pandemic, and a no-deal scenario is still possible.

Conclusion

The Luxembourg Withdrawal Agreement is a crucial document that sets out the terms of the UK`s exit from the EU. It covers a wide range of issues, including citizens` rights, the financial settlement, and the Irish border. Although the agreement was signed in 2018, the Brexit process is far from over, and the UK and the EU are still negotiating their future relationship. As the negotiations continue, it`s essential to stay informed about the latest developments and their potential impact on businesses and individuals in both the UK and the EU.