PM May and EU Parliament Gets “Two New Deadlines” after Crisis Talks
UK's Prime Minister Theresa May in a meeting with President of Europen Council Donald Tusk - Photo by European Council

JAKARTA (TheInsiderStories) – After 20 months of negotiations, the 27 leaders of European Union (EU) gave their blessing on the United Kingdom’s (UK) withdrawal and future relations in Brussel Summit on Sunday (11/25). But the deal needs to be approved by the UK Parliament first, it said.

Speaking at the summit, UK’ prime minister Theresa May urged all leaders to unite behind the agreement and asked British public not spend any more time arguing about the Brexit. EU’ president Donald Tusk added, EU27 has endorsed the Withdrawal Agreement and Political Declaration on the future EU-UK relations.

“Today, the European Council endorsed the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community,” he said in a written statement released today (11/25).

On this basis, Tusk continued, the European Council invited the Commission, the European Parliament and the Council to take the necessary steps to ensure that the agreement can enter into force on 30th March 2019, to provide for an orderly withdrawal.

International Monetary Fund (IMF) rated Brexit has the potential to reshape the structure of the UK economy. The impact will depend on the nature of the final agreement, and may take many years to fully materialize.

However, the agency reported, in the coming years agriculture, manufacturing and services will all be affected by changes in the trade framework, regulatory structure and labor market.

For example, IMF stated, the financial sector, which represents about 7 percent of GDP but accounts for around 10 percent of tax revenues and 14 percent of exports, may be particularly affected in the absence of an agreement that allows the majority of EU-facing financial services currently provided from the UK to remain there.

Manufacturing firms with complex and lengthy international supply chains, such as in the automobile industry, could also face significant challenges. These developments could also have a significant impact on productivity growth.