Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

First, when people see the text of the guidelines agreed by leaders, which are to be published tomorrow morning, they will clearly see the determination on the EU side to ensure there is no slide-back from the commitments that were made in phase 1. This applies to issues of particular Irish concern, as well as other issues. It is very clear in the wording that the negotiations in the second phase will not proceed or continue unless there is clear evidence that the commitments which were made in phase 1 will be followed though and given legal effect. I expect to see the EU develop, early next year, a draft withdrawal agreement which offers reassurance that the commitments made under phase 1 will be implemented.

I agree with the Deputy that we need to give businesses certainty as soon as we can. While I have very strong views on what I would like to see as the outcome of the phase 2 process, regardless of that outcome, businesses need time to adapt to any new realities. I have said a number of times that if there is a significant difference between the trading environment today and the trading environment post Brexit, then we will need a number of years to allow businesses to adapt to that change. We need time, too, to negotiate the detail of a new trade deal. Any expectation that the full detail of a new trade partnership or arrangement will be concluded in full and be in place by next October or November, as some parties are suggesting, is simply not realistic. What is possible by next October is to have a framework agreement within which we can set the parameters for a new trading environment between the United Kingdom and the EU. The Government's position is that we want this framework to deliver an environment as close as possible to the status quo, with no barriers to trade between the EU and the United Kingdom.

In the absence of agreement, and if the British Government decides to pursue the course of action it has outlined many times, namely, to leave the Single Market and customs union as well as the EU, there will, of course, be problems to address. Such an approach would mean that some of the commitments made in phase 1 in the context of those decisions will be triggered and will have to be part of any withdrawal agreement.

I expect the transition period will take longer than two years. There is nothing in the guidelines that commits the EU to a specific time period, although there is a recognition that the UK has requested approximately two years. An agreement on that matter will be part of the discussions early next year.

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