Proposal for a COUNCIL DECISION on the conclusion of 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
Date: 2018-12-05
Institutions: European Commission, Secretariat-General
Subjects: EAEC, United Kingdom, agreement (EU), ratification of an agreement, withdrawal from the EU

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   EUROPEAN COMMISSION  Brussels, 5.12.2018 COM(2018) 834 final 2018/0427 (NLE)  Proposal for a COUNCIL DECISION on the conclusion of 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  (Text with EEA relevance)  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

On 29 March 2017, the United Kingdom notified the European Council pursuant to Article 50 
of the Treaty on European Union of its intention to withdraw from the European Union and 
from the European Atomic Energy Community. In accordance with Article 50 of the Treaty 
on  European  Union,  the  Union  shall  negotiate  with  the  withdrawing  State  an  agreement 
setting out the arrangements for its withdrawal (the Withdrawal Agreement), taking account 
of the framework for its future relationship with the Union. The Withdrawal Agreement is to 
be  concluded  on  behalf  of  the  Union  by  the  Council,  after  obtaining  the  consent  of  the 
European Parliament. 

Following the notification, the European Council (Article 50) adopted guidelines on 29 April 
2017. In the light of these guidelines, the Council authorised the Commission on 22 May 2017 
to  open  the  negotiations  for  an  agreement  with  the  United  Kingdom  setting  out  the 
arrangements  for  its  withdrawal  from  the  European  Union  and  from  the  European  Atomic 
Energy  Community,  and  adopted  the  negotiating  directives  for  these  negotiations.  On  15 
December  2017,  the  European  Council  adopted  guidelines  supplementing  the  ones  from  29 
April  2017  and  setting  out  the  principles  and  conditions  for  any  transitional  arrangements, 
after which, the Council, on 29 January 2018, adopted supplementary negotiating directives. 

The negotiations have been conducted in the light of the above European Council guidelines 
and in line with the negotiating directives issued by the Council, and with due regard to the 
resolutions of the European Parliament of 5 April 2017, 3 October 2017, 13 December 2017 
and 14 March 2018. 

The  negotiations  were  completed  and  initialled  at  the  level  of  the  Chief  Negotiators  on  14 
November 2018.  

An agreement on a future relationship between the Union and the United Kingdom can only 
be concluded once the United Kingdom has become a third country. However, Article 50 of 
the Treaty on European Union requires that the framework for the future relationship with the 
Union is taken into account in the agreement setting out the arrangements for the withdrawal. 
An  overall  understanding  with  the  United  Kingdom  on  the  framework  for  the  future 
relationship  was  identified  during  negotiations  under  Article  50  in  the  Political  Declaration 
setting  out  the  framework  for  the  future  relationship  between  the  European  Union  and  the 
United Kingdom that has been approved by the European Council on 25 November 20181.  

• 

Consistency with other Union policies 

The  Withdrawal  Agreement  fully  respects  the  Treaties  and  preserves  the  integrity  and  the 
autonomy  of  the  Union  legal  order.  It  promotes  the  values,  objectives,  and  interests  of  the 
Union, and ensures the consistency, effectiveness and continuity of its policies and actions. In 
particular, Article 4 of the Withdrawal Agreement lays down methods and principles relating 
to  the  effect,  the  implementation  and  the  application  of  the  agreement  that  ensure  the  same 

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legal  effect  of  Union  law  provisions  made  applicable  by  the  Withdrawal  Agreement  in  the 
United Kingdom as within the Union and its Member States. 

• 

Fundamental rights 

According  to  Article  6  of  the  Treaty  on  European  Union,  the  Union  recognises  the  rights, 
freedoms and principles set out in the Charter of Fundamental Rights of the European Union, 
which has the same legal value as the Treaties. Moreover, fundamental rights, as guaranteed 
by the European Convention for the Protection of Human Rights and Fundamental Freedoms 
and as they result from the constitutional traditions common to the Member States, constitute 
general principles of the Union's law. 

These rights, freedoms and principles are fully preserved and protected in the Union after the 
withdrawal  of  the  United  Kingdom  from  the  Union.  Moreover,  the  Withdrawal  Agreement 
ensures that whenever Union law provisions or concepts are referred to, they are interpreted 
and applied using the methods and  general  principles of interpretation  applicable within the 
Union,  including  consistent  interpretation  with  the  Charter  of  Fundamental  Rights.  This  is 
particularly relevant for the Part of the Agreement on citizens' rights which relies extensively 
on Union law. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The United  Kingdom has notified its intention to  withdraw  from  the European Union. As a 
consequence, Article 50 of the Treaty on European Union constitutes the legal  basis for the 
conclusion of a withdrawal agreement. It is recalled that in accordance with Article 106a of 
the Treaty establishing the European Atomic Energy Community, Article 50 of the Treaty on 
European Union applies also to the European Atomic Energy Community. 

In  accordance  with  Article  50(2)  of  the  Treaty  on  European  Union,  the  Withdrawal 
Agreement shall  be  concluded on behalf of the  Union by the Council, acting by  a qualified 
majority, after obtaining the consent of the European Parliament. 

• 

Proportionality 

The  Withdrawal  Agreement  settles  all  disentanglement  issues  and  sets  out  clearly  the terms 
and  conditions  of  the  transition  and  its  duration.  In  so  doing,  the  Withdrawal  Agreement  is 
adequate and proportionate to the objective of ensuring an orderly withdrawal of the United 
Kingdom from the Union. 

• 

Choice of the instrument 

In accordance with Article 50(2) of the Treaty on European Union, the arrangements for the 
withdrawal  have  to  be  laid  down  in  an  agreement  between  the  withdrawing  state  and  the 
Union; the conclusion of such an agreement is decided by a Council decision.  

3. 

BUDGETARY IMPLICATIONS 

Since  the  Withdrawal  Agreement  ensures  that  the  Union  and  the  United  Kingdom  both 
respect the financial obligations resulting from the whole period of the UK membership in the 
Union,  the  only  budgetary  impact  of  the  Withdrawal  agreement  for  the  Union  results  from 
establishment  of  the  Joint  Committee,  composed  of  representatives  of  the  Union  and  of  the 
United  Kingdom.  The  Joint  Committee  will  among  others  supervise  and  facilitate  the 

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implementation and application of the Withdrawal agreement. The Joint Committee will meet 
at least once a year, at the request of either party. In addition, there could also be costs linked 
to  the  possible  initiation  of  an  arbitration  procedure  under  the  dispute  settlement  of  the 
Agreement.  Should  the  transition  period  be  extended,  the  United  Kingdom  will  make  a 
contribution for that new period to the Union budget that will be treated as General Revenues. 
The  legislative  financial  statement  attached  to  this  proposal  gives  additional  details  on  its 
estimated financial impact for the Union's budget.  

4. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

Title  2  of  Part  Six  of  the  Withdrawal  Agreement  establishes  a  Joint  Committee  that  will 
continuously  monitor  the  implementation  and  application  of  this  agreement.  The  Joint 
Committee  is  comprised  of  representatives  of  the  Union  and  representatives  of  the  United 
Kingdom  who  will  meet  at  least  once  a  year  and  will  supervise  and  facilitate  the 
implementation  and  application  of  the  agreement,  decide  on  the  tasks  of  the  specialised 
committees  and  supervise  their  work  and  make  amendment  to  the  Agreement  where 
specifically  provided  for  in  the  Agreement  itself.  The  Joint  Committee  can  only  make  its 
decisions and recommendations by agreement between the Union and the United Kingdom. It 
can  in  no  way  restrict  the  decision-making  at  Union  level.  The  Union  and  the  United 
Kingdom  may,  through  the  Joint  Committee,  decide  to  amend  certain  aspects  of  the 
Agreement, only in those cases where this is specifically provided therein. When the Parties 
approve  such  a  decision,  it  has  to  be  subject  to  their  respective  applicable  internal 
requirements and procedures. 

The following specialised committees will operate under the control of the Joint Committee, 
i.e. one sub-committee for each of the main parts of the Withdrawal Agreement:  

(a) 

(b) 

(c) 

(d) 

(e) 

the Committee on citizens' rights; 

the Committee on the other separation provisions; 

the  Committee  on  issues  related  to  the  implementation  of  the  Protocol  on 
Ireland/Northern Ireland; 

the Committee on issues related to the implementation of the Protocol relating 
to the Sovereign Base Areas in Cyprus;  

the  Committee  on  issues  related  to  the  implementation  of  the  Protocol  on 
Gibraltar; and 

(f) 

the Committee on the financial provisions. 

The  proposal  also  foresees  a  role  for  the  Joint  Committee  in  dispute  settlement,  which  is 
addressed in Title 3 of Part Six of the Withdrawal Agreement. 

Implementation and application of the Withdrawal Agreement in the Union 

In  accordance with  Article  216(2)  of  the Treaty  on the Functioning  of the European Union, 
agreements  concluded  by  the  Union  are  binding  upon  the  institutions  of  the  Union  and  its 
Member  States.  The  implementation  and  application  of  the  Withdrawal  Agreement  in  the 
Union should take place in full respect of the allocation of tasks between on the one hand the 
Union and its Member States and, on the other hand, between the different Union institutions. 
It  would  therefore  be,  by  virtue  of  its  tasks  as  laid  down  in  Article  17(1)  of  the  Treaty  on 
European  Union,  mostly  for  the  Commission  to  act  on  behalf  of  the  Union  and  of  the 

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Euratom. In certain cases, and in line with the Council's policy-making function as laid down 
in Article 16(1) TEU, the Council will act on behalf of the Union and of the Euratom.  

For example,  where  the  Agreement states that the Union shall provide the United Kingdom 
with  particular  information  or  notifications,  this  should  in  principle  be  done  by  the 
Commission  on behalf of the Union,  if necessary based on  the information provided  by the 
Member States or other institutions or relevant Union bodies or entities. The foregoing applies 
in particular to the following provisions of the Agreement:  

(a)  Article 18(1)(c) : notification by the Union that technical problems prevent the 
host State either from registering the application or from issuing the certificate 
of application referred to in point (b) of that Article; 

(b)  Article  33(2):  notification  by  the  Union  of  the  date  of  entry  into  force  of  the 

agreements referred to in Article 33(1); 

(c)  Article 36(1): information to be provided by the Union to the United Kingdom 
on  new  or  amending  relevant  legislation  pertaining  to  the  social  security 
provisions; 

(d)  Article 36 (4): information to be provided by the Union to the United Kingdom 
in the Joint Committee on the proposals for adaptation of the relevant annex of 
the  purposes  of  alignment  with  Decisions  and 
the  Agreement 
Recommendations of the Administrative Commission on Social Security; 

for 

(e)  Article  55(3):  communication  by  the  Union  to  the  United  Kingdom  of  the 
information  necessary  for  the  registration  or  grant  in  the  United  Kingdom  of 
the intellectual property rights referred to in Article 54(1) or (2); 

(f)  Article 96(6): information by the Union at the request of the United Kingdom 
to comply with its reporting obligation under Article 7 of the Montreal Protocol 
on  Substances  that  Deplete  the  Ozone  Layer;  and  to  apply  penalties  in 
accordance with Article 25 of Regulation (EU) No 517/2014 and Article 29 of 
Regulation (EC) No 1005/2009. 

(g)  Article  102:  notification  by  the  Union  to  the  United  Kingdom  when  Union 
premises, buildings, property or assets are no longer in such use or have been 
removed from the United Kingdom; 

(h)  Article 103: notification by the Union to the United Kingdom of the removal of 

any Union archives from the United Kingdom; 

(i)  Article 116(3) : notification by the Union to the authorities of the status of any 
person which is relevant to that person's entitlement to a privilege or immunity 
under this Title; 

(j)  Article  119:  notification  by  the  Union  to  the  United  Kingdom  of  the 

completion date of the relocation of the agencies;  

(k)  Article  127(7)  (b):  notification  by  the  Union  to  the  United  Kingdom  when 
during the transition period the latter will not be considered a Member State for 
the  purposes  of  an  information  exchange,  procedure  or  programme  which 
continues to be implemented or starts after the end of the transition period, and 
where  such  participation  would  grant  access  to  security  related  sensitive 
information that only Member States are to have knowledge of; 

(l)  Article 134: information to be provided by the Union to the relevant entrusted 

entities communicated by the United Kingdom; 

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(m)  Article 140(2) and (3): information to be provided by the Union to the United 
Kingdom  on  the  amounts  of  outstanding  commitments  referred  to  in  these 
provisions; 

(n)  Article 142 (3), (4) and (5): information to be provided to the United Kingdom 

on the liabilities at the end of 2020 referred to in these provisions; 

(o)  Article 143 (1) (b), (2), (3) and (4): reports and information to be provided by 
the  Union  to  the  United  Kingdom  on  relevant  contingent  financial  liabilities 
related to loans for financial assistance, EFSI, EFSD and the external lending 
mandate referred to in these provisions; 

(p)  Article  144  (1):  information  to  be  provided  by  the  Union  to  the  United 
Kingdom  concerning  the  financial  instruments  under  direct  or  indirect 
implementation  financed by the programmes of the MFF 2014-2020 or under 
earlier financial perspectives; 

(q)  Article  147  (2):  information  to  be  provided  by  the  Union  to  the  United 

Kingdom regarding contingent liabilities related to legal cases; 

(r)  Article  148  (2):  information  to  be  provided  by  the  Union  to  the  United 

Kingdom pursuant to this provision regarding payments after 2020; 

(s)  Article  159  (2):  annual  information  to  be  provided  by  the  Union  to  the 

specialised Committee on citizens’ rights; 

(t)  Article  185:  notification  to  the  United  Kingdom  on  behalf  of  the  Union  in 
respect  of  any  Member  State  which  has  declared,  in  accordance  with  the 
provision  that  during  the  transition  period,  that  Member  State  will  not 
surrender its nationals pursuant to Framework Decision 2002/584/JHA. 

In certain cases, the Withdrawal Agreement identifies another Union institution or body that 
has to transmit that information, for example: 

(a)  Article  149:  reimbursement  by  the  European  Central  Bank  of  the  paid-in 

capital; or 

(b)  Article 150(4): reimbursement by the European Investment Bank of the paid-in 

capital.  

Where the Agreement states that the Union may decide to invite the United Kingdom, during 
the transition period, to participate exceptionally in certain meetings of committees or expert 
groups  or  meetings  of  bodies,  offices  and  agencies  of  the  Union  (i.e.  Article  128(5)  of  the 
Agreement) or in international negotiation and consultation meetings (i.e. Article 129 (2) b) 
and  Article  130  (3)  of  the  Agreement),  such  invitations  to  the  United  Kingdom  should  in 
principle be done by the Commission on behalf of the Union. Where the meeting is organised 
by Union bodies, offices or agencies, it will be for those Union bodies, offices or agencies to 
send  the  appropriate  invitations.  Such  invitations  may  only  be  issued  provided  that  the 
conditions  laid  down  in  the  Agreement  are  fulfilled.  The  Commission  intends  to  issue 
guidance in this respect, so as to ensure consistent application of these provisions.  

Where  the  Agreement  states  that  the  Union  shall  consult  the  United  Kingdom  during  the 
transition period: such consultation should also be done by the Commission on behalf of the 
Union. This applies in particular to the following provisions of the Agreement:  

(a)  Article 128(7): the obligation for the Union to consult the United Kingdom on 
draft  Union  acts  which  identify  or  refer  directly  to  specific  Member  State 
authorities, procedures, or documents; 

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(b)  Article  129(5):  possibility  to  consult  the  United  Kingdom  pursuant  to  that 

provision;  

(c)  Article 130(1): the obligation for the Union to consult the United Kingdom on 
fishing opportunities relating to EU waters and outside EU waters pursuant to 
that provision; 

(d)  Article  130(2):  the  obligation  for  the  Union  to  provide  the  United  Kingdom 

with an opportunity to provide comments pursuant to that provision. 

It will also be for the Commission to agree with the United Kingdom on the administrative 
arrangements such as those referred to in Article 134 (administrative arrangements between 
the auditors of the Union and the United Kingdom to facilitate the audit process) or in Article 
12 of the Protocol on Ireland/Northern Ireland (administrative arrangements necessary for the 
proper implementation of the state aid provisions of the Protocol).  

The Commission will also act on behalf of the Union on all steps of the procedure regarding 
dispute settlement under Title III of Part VI of the Agreement. 

• 

Detailed explanation of the specific provisions of the proposal 

The Commission's draft text proposal for the Withdrawal Agreement consists of 185 Articles 
structured  in  six  Parts  (further  divided  into  Titles  and  Chapters),  three  Protocols  and  nine 
Annexes, as follows: 

Part  One  (Common  Provisions)  contains  the  common  provisions  of  the  Withdrawal 
Agreement (“the Agreement”), including definitions, the territorial  scope  of the Withdrawal 
Agreement,  the  methods  and  principles  relating  to  the  effect,  the  implementation  and  the 
application of the Agreement. 

Part  Two  (Citizens’  Rights)  sets  out  the  provisions  aimed  at  safeguarding  the  status  and 
rights  derived  from  Union  law  of  EU  and  UK  citizens,  and  their  families,  affected  by  the 
United Kingdom withdrawal. Part Two includes 4 titles: Title I (General provisions), Title II 
(Rights  and  obligations),  Title  III  (Coordination  of  Social  Security  systems),  and  Title  IV 
(Other provisions). 

Part  Three  (Separation  Provisions)  sets  out  the  provisions  for  other  issues  relating  to  the 
disentanglement of the United Kingdom from the Union. Part Three includes 13 titles: Title I 
(Goods  placed  on  the  market),  Title  II  (Ongoing  customs  procedures),  Title  III  (Ongoing 
value added tax and  excise duty matters), Title  IV (Intellectual property), Title V (Ongoing 
police and judicial cooperation in criminal matters), Title VI (Ongoing judicial cooperation in 
civil and commercial matters), Title VII (Data and information processed or obtained before 
the  date  of  entry  into  force,  or  on  the  basis  of  this  Agreement),  Title  VIII  (Ongoing  public 
procurement  and  similar  procedures),  Title  IX  (Euratom  related  issues),  Title  X  (Union 
judicial  and  administrative  procedures),  Title  XI  (Administrative  cooperation  procedures 
between Member States and the United Kingdom), Title XII (Privileges and immunities) and 
Title  XIII  (Other  issues  relating  to  the  functioning  of  the  institutions,  bodies,  offices  and 
agencies of the Union).  

Part  Four  (Transition)  sets  out  a  transition  period  during  which  the  whole  EU  acquis  will 
apply to the United Kingdom, with some exceptions. During transition, the United Kingdom 
will no longer be represented in the Union institutions, nor participate in the decision-shaping 
and decision-making process of the Union. Furthermore, Part Four establishes the transitional 
arrangements  applicable  to  United  Kingdom  with  regard  to  the  international  agreements 
concluded by  the Union, or by  Member States  acting on its behalf, or by  the Union and its 
Member  States  acting  jointly.  In  accordance  with  Article  129,  the  United  Kingdom  will  be 

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bound  by  the  obligations  stemming  from  those  agreements.  Article  130  provides  for  a 
consultation mechanism for the fixing of fishing opportunities of the United Kingdom for the 
transition period. Article 131 will ensure that the full competence of all Union institutions will 
be  preserved  in  relation  to  the  United  Kingdom,  including  the  competence  of  the  Court  of 
Justice  of  the  European  Union.  Article  132  provides  for  the  possibility  of  adopting  a  single 
decision extending the transition period for up to 1 or 2 years. 

Part  Five  (Financial  provisions)  lays  down  detailed  rules  on  the  financial  settlement, 
including detailed rules on the components of the financial settlement as well as the rules for 
the calculation of the value of the financial settlement and payment modalities. Rules are also 
set  for  the  arrangements  for  continued  participation  of  the  United  Kingdom  in  the 
programmes of the current Multiannual Financial Framework (MFF) until their closure. 

Part Six (Institutional and final provisions) sets out rules for the consistent interpretation and 
application  of  the  Agreement  and  establishes  a  Joint  Committee  as  well  as  a  dispute 
settlement mechanism. This Part contains also a best endeavours obligation on Parties to try to 
reach agreement on their future relationship before the end of the transition period, as well as 
the provisions on the entry into force of the Agreement  

The  protocol  on  Ireland/Northern  Ireland  and  its  10  Annexes  include  the  provisions 
necessary  for  the  so-called  “backstop”  solution  for  avoiding  a  hard  border  between  Ireland 
and Northern Ireland. This will apply unless and until it is superseded, in whole or in part, by 
any subsequent agreement. The Protocol creates a single EU-UK customs territory. This will 
avoid the need for tariffs, quotas or checks on rules of origin between the EU and the UK. It 
also foresees a set of measures to ensure that there is a level playing field between the EU and 
the UK. Furthermore, the Protocol ensures that the Union's Customs Code (UCC), setting out, 
inter  alia,  the  provisions  for  releasing  products  into  free  circulation  within  the  EU,  will 
continue to apply to Northern Ireland. This will ensure that Northern Irish businesses will not 
face restrictions when placing products on the EU’s Single Market. The Protocol also foresees 
that the United Kingdom in respect of Northern Ireland will remain aligned to a limited set of 
rules that are related to the EU’s Single Market and indispensable for avoiding a hard border: 
legislation  on  goods,  sanitary  and  phytosanitary  rules  (“SPS  rules”),  rules  on  agricultural 
production,  VAT  and  excise,  and  state  aid  rules.  There  are  also  provisions  maintaining  the 
Single  Electricity  Market  on  the  island  of  Ireland.  Pursuant  to  the  Protocol,  the  Common 
Travel Area between Ireland and the United Kingdom and its associated rights and privileges 
will  continue  to  apply  in  conformity  with  EU  law,  in  particular  on  free  movement  of  EU 
citizens. North-South cooperation will also continue as set out in the Protocol, including in the 
areas of environment,  health, agriculture, transport, education and tourism, as well as in  the 
areas  of  energy,  telecommunications,  broadcasting,  inland  fisheries,  justice  and  security, 
higher education and sport. 

The Withdrawal Agreement also includes a protocol relating to the Sovereign Base Areas 
of the United Kingdom in Cyprus (the protocol on the SBAs). Since the relations between 
the Union and the Sovereign Base Areas in Cyprus are to be defined against the background 
of  the  Republic  of  Cyprus’  membership  of  the  Union,  the  protocol  on  the  SBAs  should 
establishes appropriate mechanisms to achieve, after the withdrawal of the United Kingdom 
from  the  Union,  the  objectives  of  the  arrangements  set  out  in  Protocol  3  to  the  Act  of 
Accession of the Republic of Cyprus to the Union. As outlined in the Joint Statement of 19 
June  2018,  both  the  Union  and  the  United  Kingdom  committed  to  establishing  appropriate 
arrangements for the Sovereign Base Areas, "in particular with the aim to protect the interests 
of Cypriots who live and work in the SBAs following the UK's withdrawal from the Union, in 
full respect of the rights and obligations under the Treaty of Establishment." The Union and 
the United Kingdom have agreed on the terms of a Protocol which will give effect to this and 

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which is annexed to the Withdrawal Agreement. The aim of the Protocol is to ensure that EU 
law, in the areas stipulated in Protocol 3 to Cyprus's Act of Accession, will continue to apply 
in  the  Sovereign  Base  Areas,  with  no  disruption  or  loss  of  rights  especially  for  the 
approximately  11,000  Cypriot  civilians  living  and  working  in  the  areas  of  the  SBAs.  This 
applies  to  a  number  of  policy  areas  such  as  taxation,  goods,  agriculture,  fisheries  and 
veterinary  and  phytosanitary  rules.  The  Protocol  confers  responsibility  on  the  Republic  of 
Cyprus for the implementation and enforcement of Union law in relation to most of the areas 
covered, with the exception of security and military affairs. 

Finally, the Withdrawal Agreement includes a protocol on Gibraltar addressing the specific 
issues  that  the  withdrawal  of  the  United  Kingdom  from  the  Union  creates  in  relation  to 
Gibraltar.  The  European  Council  guidelines  of  29  April  2017  set  out  that  "no  agreement 
between the EU and the United Kingdom may apply to the territory of Gibraltar without the 
agreement between the Kingdom of Spain and the United Kingdom." This has been recalled 
in the Council supplementary negotiating directives of 29 January 2018 and in the European 
Council  guidelines  of  14  March  2018.  In  the  statements  to  the  minutes  of  the  European 
Council  meeting  of  25  November  2018,  the  following  declaration  of  the  European  Council 
and  of  the  Commission  has  been  included:  "After  the  United  Kingdom  leaves  the  Union, 
Gibraltar will not be included in the territorial scope of the agreements to be concluded between 
the  Union  and  the  United  Kingdom.  However,  this  does  not  preclude  the  possibility  to  have 
separate agreements between the Union and the United Kingdom in respect of Gibraltar. Without 
prejudice  to  the  competences  of  the  Union  and  in  full  respect  of  the  territorial  integrity  of  its 
Member  States  as  guaranteed  by  Article  4(2)  of  the  Treaty  on  European  Union,  those  separate 
agreements  will  require  a  prior  agreement  of  the  Kingdom  of  Spain".  Moreover,  at  the  same 
occasion, the European Council and the Commission have issued an interpretative declaration 
relating  to  the  Article  184  of  the  Withdrawal  Agreement  and  territorial  scope  of  future 
agreements.  

Bilateral  negotiations  between  Spain  and  the  United  Kingdom  have  now  concluded.  A 
Protocol  referring  to  these  bilateral  arrangements  is  annexed  to  the  Withdrawal  Agreement. 
The Protocol forms a package with bilateral memoranda of understanding between Spain and 
the United Kingdom  in  respect  of Gibraltar. This concerns bilateral  cooperation on citizens' 
rights,  tobacco  and  other  products,  environment,  police  and  customs  matters,  as  well  as  a 
bilateral agreement in relation to taxation and the protection of financial interests. On citizens' 
rights, the Protocol establishes the basis for administrative cooperation between the competent 
authorities  for  the  implementation  of  the  Withdrawal  in  relation  to  people  living  in  the 
Gibraltar  area,  and  in  particular  frontier  workers.  On  air  transport  law,  it  establishes  the 
possibility, in case of an agreement between Spain and the United Kingdom on the use of the 
Gibraltar  airport,  to  make  applicable  to  Gibraltar  during  the  transition  the  Union  legislation 
previously  not  applicable  there.  On  fiscal  matters  and  protection  of  financial  interests,  the 
Protocol  establishes  the  basis  for  administrative  cooperation  between  the  competent 
authorities  for  achieving  full  transparency  in  tax  matters,  fighting  against  fraud,  smuggling, 
and money laundering. The United Kingdom also commits that international standards in this 
area are complied with in Gibraltar. In relation to tobacco, the United Kingdom  commits to 
ratify  certain  conventions  in  respect  of  Gibraltar  and  to  put  in  place  before  30  June  2020  a 
system of traceability and security measures on cigarettes. In respect of alcohol and petrol, the 
United  Kingdom  commits  to  ensure  that  a  tax  system  which  aims  at  preventing  fraud  is  in 
force  in  Gibraltar.  On  environment  protection  and  fishing  and  cooperation  in  police  and 
customs matters, the Protocol establishes the basis for administrative cooperation between the 
competent  authorities.  A  specialised  committee  is  also  established  for  overseeing  the 
application of this Protocol. 

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The Agreement also includes the following annexes: 

 

 

 

 

 

 

 

 

 

Annex I on Social Security coordination 

Annex II on the provisions of Union law referred to in Article 41(4); 

Annex  III  on  Time  limits  for  the  situations  or  customs  procedures  referred  to  in 
Article 49 (1) 

 Annex  IV  on  the  list  of  networks,  information  systems  and  databases  referred  in 
Articles 50, 53, 99 and 100; 

Annex V on EURATOM; 

Annex VI on the list of administrative cooperation procedures referred to in Article 
98; 

Annex VII on the List of acts/provisions referred to in Article 128(6) 

Annex  VIII  on  the  rules  of  procedure  of  the  Joint  Committee  and  specialised 
committees 

Annex IX on rules of procedure for dispute settlement; 

The Agreement shall enter into force on 30 March 2019. 

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2018/0427 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of 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 

(Text with EEA relevance) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on European Union, and in particular Article 50(2), 

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in 
particular Article 106a,  

Having regard to the proposal from the European Commission, 

Having regard to the consent of the European Parliament, 

Having regard to the opinion of the European Central Bank, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

In  accordance  with  Council  Decision  No  (EU,  Euratom)  …,  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  (hereinafter  'the 
Agreement') was signed on …. 

The  Agreement  should  be  approved  on  behalf  of  the  European  Union  and  the 
European Atomic Energy Community. 

Any  references  to  Union  in  this  decision  should  be  understood  as  including  the 
European Atomic Energy Community.  

On  the  date  of  entry  into  force  of  the  Agreement,  the  mandates  of  all  members  of 
institutions,  bodies  and  agencies  of  the  Union  nominated,  appointed  or  elected  in 
relation  to  the  United  Kingdom's  membership  of  the  Union  end  automatically  as  a 
result of the withdrawal. 

It  is  appropriate  to  define  the  modalities  of  the  Union's  representation  in  the  Joint 
Committee established by the Agreement. Where the Joint Committee is  empowered 
by  the  Agreement  to  adopt  acts  having  legal  effects,  including  for  the  purposes  of 
modifying the Agreement on non-essential elements, the positions to be taken on the 
Union's  behalf  in  the  Joint  Committee  are  to  be  established  in  accordance  with  the 
procedure set out in Article 218(9) of the Treaty on the Functioning of the European 
Union.  

(6)  Where the Union position to be taken in the Joint Committee relates to the extension 
of the transition period or the review of the Protocol on Ireland/Northern Ireland, the 
Council will act in accordance with European Council guidelines. Any decision on the 

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extension of the transition  period will take into account  the  fulfilment of  obligations 
under the Agreement, including its Protocols.  

(7)  Whenever the Union is  required to  act  in  order to  comply with  the provisions  of the 
Agreement, such action is to be taken in accordance with the provisions of the Treaties 
while respecting the limits of powers conferred upon each institution. It is therefore for 
the Commission to provide the United Kingdom with the information or notifications 
required  in  the  Agreement,  except  where  the  Agreement  refers  to  other  specific 
institutions, bodies, offices and agencies of the Union, to consult the United Kingdom 
on specific matters, to invite United Kingdom representatives to attend, as part of the 
Union delegation, international consultation or negotiation meetings or to represent the 
Union  before  an  arbitration  panel,  where  a  dispute  is  submitted  to  arbitration  in 
accordance with Article 170 of the Agreement. In compliance with the duty of sincere 
cooperation  referred  to  in  Article  4(3)  of  the  Treaty  on  European  Union,  the 
Commission should inform the Council of any such dispute. It is for the same reason 
that  it  should  be  for  the  Commission  to  agree  with  the  United  Kingdom  on  the 
administrative arrangements such as those referred to in Article 134 of the Agreement.  

(8) 

(9) 

In  its  statement  for  the  minutes  of  the  Council  meeting  of  29  January  2018,  the 
Commission  indicated  that  it  will  issue,  after  consulting  the  Council,  a  guidance 
document on a consistent application of Article 128(5) of the Agreement.  

Pursuant to Article 129(4) of the Agreement, during the transition period, the United 
Kingdom  may  negotiate,  sign  and  ratify  international  agreements  entered  into  in  its 
own  capacity  in  the  areas  of  exclusive  competence  of  the  Union  provided  those 
agreements  do  not  enter  into  force  or  apply  during  the  transition  period,  unless  so 
authorised  by  the  Union.  It  is  necessary  to  set  out  the  conditions  and  procedure  for 
granting  such  authorisations.  Given  the  political  significance  of  decisions  granting 
such authorisations, it is appropriate to confer the power to adopt them on the Council 
by means of implementing acts, acting on a proposal from the Commission. 

(10)  The  Agreement  addresses  in  separate  protocols  the  very  specific  situations  of 
Ireland/Northern  Ireland,  of  the  Sovereign  Base  Areas  of  the  United  Kingdom  in 
Cyprus and of Gibraltar. Given the possible need for Ireland, the Republic of Cyprus 
and the Kingdom  of Spain,  respectively, to  enter into such bilateral  agreements with 
the  United  Kingdom  as  may  be  necessary  for  the  proper  functioning  of  the 
arrangements  provided  for  in  these  specific  protocols,  it  is  necessary  to  set  out  a 
conditions and procedure for authorising the respective Member State to negotiate and 
conclude  such  bilateral  agreements  where  these  concern  areas  of  exclusive  Union 
competence. Given the political significance of decisions granting such authorisations, 
it  is  appropriate  to  confer  the  power  to  adopt  them  on  the  Council  by  means  of 
implementing acts, acting on a proposal from the Commission.  

(11)  Article 18(1) and (4) of the Agreement provide for the obligation on the host Member 
States to issue United Kingdom nationals, their respective family members and other 
persons who fall within the scope of Title II of Part Two of the Agreement a document 
evidencing their residence status in accordance with the Agreement. Article 26 of the 
Agreement provides for  the obligation on the Member State of work to  issue United 
Kingdom  nationals  who  have  rights  as  frontier  workers  under  the  Agreement  a 
document  certifying  the  status  of  frontier  worker  under  the  Agreement.  In  order  to 
ensure uniform conditions for the implementation of these provisions within the Union 
with  the  aim  of  facilitating  the  recognition  of  such  documents,  notably  by  border 
control authorities, and  preventing falsification and counterfeiting  through high-level 

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security  features,  implementing  powers  should  be  conferred  on  the  Commission  to 
establish the validity period and format, including technical specifications, as well as 
the  common  statement  that  documents  issued  under  Articles  18  and  26  of  the 
Agreement  should  have,  indicating  that  they  were  issued  in  accordance  with  the 
Agreement. Those powers should be exercised in accordance with Regulation (EU) No 
182/2011  of  the  European  Parliament  and  of  the  Council.2  For  this  purpose,  the 
Commission should be assisted by the Committee established by Article 6 of Council 
Regulation (EC) No 1683/95.3 If need be, such implementing acts may be protected by 
all appropriate measures preventing the risk of counterfeiting and falsification. In that 
case  they  should  be  made  available  only  to  the  bodies  designated  by  the  Member 
States  as  responsible  for  the  printing  and  to  persons  duly  authorised  by  a  Member 
State or the Commission. Such implementing acts should be without prejudice to any 
special  arrangements  that  Ireland  may,  by  virtue  of  the  Agreement,  make  with  the 
United Kingdom relating to the movement of persons in the Common Travel Area. 

(12)  Article  4(1)  and  Article  13  of  Annex  3  of  the  Protocol  on  Ireland/Northern  Ireland 
stipulates that the Union shall set  out  the specimen and  explanatory  notes  for the  A. 
UK. Movement Certificate and, respectively, the specimen for the label to be affixed 
on  the  postal  consignments  referred  to  therein.  Such  specimens  are  necessary  to  be 
used  as  documentary  evidence  that  a  good  is  within  the  scope  of  Annex  2  of  the 
Protocol  on  Ireland/Northern  Ireland.  For  that  purpose,  implementing  powers  should 
be  conferred  on  the  Commission  to  establish  the  format  of  these  specimens  and 
explanatory  notes,  including  technical  specifications.  Those  powers  should  be 
exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council. For this purpose, the Commission should be assisted by 
the  Customs  Code  Committee  established  by  Article  285  of  Regulation  (EU)  No 
952/2013 of the European Parliament and of the Council4. 

(13)  As  provided  for  in  Article  50(4)  of  the  Treaty  on  European  Union,  the  United 
Kingdom is not taking part in the discussions of the Council concerning this decision 
nor in its adoption, 

HAS ADOPTED THIS DECISION: 

Article 1 

The  Agreement  on  the  withdrawal  of  the  United  Kingdom  of  Great  Britain  and  Northern 
Ireland  from 
the  European  Atomic  Energy  Community 
("Agreement")  is  hereby  approved  on  behalf  of  the  Union  and  of  the  European  Atomic 
Energy Community. 

the  European  Union  and 

Any references to Union in this decision shall be understood as including the European 
Atomic Energy Community. 

2 

3 

4 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by Member States of 
the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 
Council Regulation (EC) No 1683/95 of 29 May 1995 laying down a uniform  format for visas (OJ L 
164, 14.7.1995, p. 1). 
Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying 
down the Union Customs Code (OJ L 269, 10.10.2013, p. 1). 

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Article 2 

1. 

The  Commission  shall  represent  the  Union  within  the  Joint  Committee,  and  its 
specialised  committees  provided  for  in  Articles  164  and  165  of  the  Agreement,  as 
well  as  in  any  further  specialised  committee  as  may  be  established  in  accordance 
with Article 164(2)(b).  

1.1. 

Ireland, the Republic of Cyprus and the Kingdom of Spain, respectively, may request 
that the Commission representative be accompanied by: 

2. 

3. 

1. 

(a) 

(b) 

a  representative  of  Ireland  in  the  meetings  of  the  specialised  committee  on 
issues  related  to  the  implementation  of  the  Protocol  on  Ireland/Northern 
Ireland; 

a  representative  of  the  Republic  of  Cyprus  in  the  meetings  of  the  specialised 
committee  on  issues  related  to  the  implementation  of  the  Protocol  relating  to 
the Sovereign Base Areas in Cyprus; 

(c) 

a  representative  of  the  Kingdom  of  Spain  in  the  meetings  of  the  specialised 
committee on issues related to the implementation of the Protocol on Gibraltar. 

The Commission shall  ensure that the Council is informed of the meeting schedule 
and the agendas referred to in Article 164(2), Article 165(2) and (4) and Annex VIII 
sufficiently  in  advance  to  allow  for  the  necessary  information,  consultation  and 
decision-making  in  the  Council.  The  Council  shall  also  be  informed  about  the 
outcome of the meetings of the Joint Committee.  

During  the  first  five  years  after  the  entry  into  force  of  the  Agreement,  the 
Commission shall report annually to the European Parliament and to the Council on 
the implementation and application of the Agreement, in particular of its Part Two.  

Article 3 

The  Council  may  authorise  the  United  Kingdom  to  express  its  consent,  in  its  own 
capacity, to be bound by an international agreement intended to enter into force or be 
applied during the transition period, in an area of exclusive competence of the Union. 
Such authorisation may only be granted if: 

(a) 

(b) 

(c) 

 the United Kingdom has demonstrated a specific interest that the international 
agreement in question enters into force or applies already during the transition 
period; 

 the  international  agreement  in  question  is  compatible  with  Union  law 
applicable to and in the United Kingdom in accordance with Article 127 of the 
Agreement  and  with  the  obligations  referred  to  in  Article  129(1)  of  the 
Agreement; and 

 the  entry  into  force  or  application  during  the  transition  period  of  the 
international agreement in question would neither put at risk the attainment of 
an  objective  of  the  Union's  external  action  in  the  area  concerned  nor  be 
otherwise prejudicial to the Union's interests. 

2. 

An  authorisation  granted  pursuant  to  paragraph  1  may  be  conditional  upon  the 
inclusion in or removal from the agreement in question of any provision or upon the 
suspension of the application of any provision of that agreement, where necessary to 
ensure the consistency with the conditions set out in paragraph 1.  

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3. 

4. 

5. 

1. 

2. 

3. 

4. 

5. 

The  United  Kingdom  shall  notify  the  Commission  of  its  intention  to  express  its 
consent, in its own capacity, to be bound by an international agreement intended to 
enter  into  force  or  be  applied  during  the  transition  period,  in  an  area  of  exclusive 
competence of the Union. The Commission shall promptly inform the Council of any 
notification by the United Kingdom of the latter’s intention to express its consent, in 
its own capacity, to be bound by the international agreement in question. 

The  Council  shall  adopt  the  decisions  referred  to  in  paragraph  1  by  means  of 
implementing acts, on a proposal from the Commission. The Commission's proposal 
shall  include an assessment  as to  whether the  conditions  referred to in  paragraph 1 
are fulfilled. If information provided by the United Kingdom is not sufficient for the 
assessment, the Commission may request additional information. 

The Council shall inform the European Parliament of any decision taken pursuant to 
paragraph 1. 

Article 4 

On a duly justified request from Ireland, the Republic of Cyprus or the Kingdom of 
Spain,  respectively,  the  Council  may  authorise  these  Member  States  to  negotiate 
bilateral  agreements  with  the United Kingdom  in areas of  exclusive competence of 
the Union. Such authorisation may only be granted if: 

(a) 

the Member State concerned provided information showing that the agreement 
in question is necessary for the proper functioning of the arrangements set out, 
respectively, in the Protocol on Ireland/Northern Ireland, the Protocol relating 
to  the  Sovereign  Base  Areas  of  the  United  Kingdom  of  Great  Britain  and 
Northern Ireland in Cyprus and the Protocol on Gibraltar and complies with the 
principles and objectives of the Agreement; 

(b)  on the basis of the information provided by the Member State, it appears that 

the envisaged agreement is compatible with Union law; and 

(c) 

the  envisaged  agreement  would  neither  put  at  risk  the  attainment  of  an 
objective of the Union's external action in the area concerned nor be otherwise 
prejudicial to the Union's interests. 

An  authorisation  granted  pursuant  to  paragraph  1  may  be  conditional  upon  the 
inclusion in or removal from the agreement in question of any provision or upon the 
suspension of the application of any provision of that agreement, where necessary to 
ensure the consistency with the conditions set out in paragraph 1. 

The  Member  State  concerned  shall  notify  the  Commission  of  its  intention  to  enter 
into negotiations with the United Kingdom. The Commission shall promptly inform 
the  Council  thereof.  The  Member  State  concerned  shall  provide  the  Commission 
with  all  the  information  necessary  to  assess  whether  the  conditions  set  out  in 
paragraph 1 are fulfilled. 

The Commission shall be invited by the Member State concerned to  closely follow 
the negotiations. 

Before signing the bilateral agreement, the Member State concerned shall notify the 
Commission  of  the  outcome  of  negotiations  and  shall  transmit  the  text  of  the 
prospective agreement to the Commission which shall promptly inform the Council. 
The  Member  State  concerned  may  only  express  its  consent  to  be  bound  by  the 
bilateral agreement in question provided that the Council has authorised it to do so. 

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6. 

The Council shall adopt the decisions referred to in paragraphs 1 and 5 by means of 
implementing acts, on a proposal from the Commission.  

The Commission's proposal shall include an assessment as to whether the conditions 
set  out  in  paragraph  1  and  referred  to  in  paragraph  2  are  fulfilled.  If  information 
provided  by  the  Member  State  concerned  is  not  sufficient  for  the  assessment,  the 
Commission may request additional information. 

7. 

8. 

When  the  Council  grants  an  authorisation  pursuant  to  paragraphs  1  and  5,  the 
Member State concerned shall notify the Commission of the entry into force of the 
bilateral  agreement  concerned,  as  well  as  any  subsequent  changes  concerning  the 
status of the agreement. 

The Council shall inform the European Parliament of the decisions taken pursuant to 
paragraph 1 and 5. 

Article 5 

The Commission shall lay down the period of validity and format, including security features 
and common statement, of documents that Member States shall issue pursuant to Article 18(1) 
and  (4)  and  Article  26  of  the  Agreement.  Those  implementing  acts  shall  be  adopted  in 
accordance with the examination procedure referred to in Article 7.  

Article 6 

The  Commission  shall  specify  the  format  and  explanatory  notes,  including  technical 
specifications of the specimens referred to in Article 4(1) and Article 13 of the Annex 3 to the 
Protocol  on  Ireland/Northern  Ireland  to  the  Agreement.  Those  implementing  acts  shall  be 
adopted in accordance with the examination procedure referred to in Article 7. 

1. 

The Commission shall be assisted by: 

Article 7 

(a) 

(b) 

the Committee established by Article 6 of Regulation (EC) No. 1683/95 for the 
adoption of implementing acts referred to in Article 5; 

the  Customs  Code  Committee  established  by  Article  285  of  Regulation  (EU) 
No 952/2013 for the adoption of implementing acts referred to in Article 6. 

Those  committees  shall  be  committees  within  the  meaning  of  Regulation  (EU)  No 
182/2011. 

2. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply. 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
deposit, on behalf of the Union, the notification provided for in Article 185 of the Agreement. 

Article 8 

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This Decision shall enter into force on the date of its adoption. 

Article 9 

Done at Brussels, 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned 

1.3.  The proposal/initiative relates to  

1.4.  Objective(s)  

1.4.1. General objective(s) 

1.4.2. Specific objective(s) 

1.4.3. Expected result(s) and impact 

1.4.4. Indicators of performance 

1.5.  Grounds for the proposal/initiative  

1.5.1. Requirement(s)  to  be  met  in  the  short  or  long  term  including  a  detailed 
timeline for roll-out of the implementation of the initiative 

1.5.2. Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

1.5.3. Lessons learned from similar experiences in the past 

1.5.4. Compatibility  with  the  Multiannual  Financial  Framework  and  possible 
synergies with other appropriate instruments 

1.5.5. Assessment  of  the  different  available  financing  options,  including  scope  for 
redeployment 

1.6.  Duration and financial impact of the proposal/initiative 

1.7.  Management mode(s) planned 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system(s) 

2.2.1. Justification  of 
mechanism(s), the payment modalities and the control strategy proposed 

the  management  mode(s), 

funding 

the 

implementation 

2.2.2. Information  concerning the risks identified and the internal control  system(s) 
set up to mitigate them 

2.2.3. Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  of 
"control  costs  ÷  value  of  the  related  funds  managed"),  and  assessment  of  the 
expected levels of risk of error (at payment & at closure) 

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated financial impact of the proposal on appropriations 

3.2.1. Summary of estimated impact on operational appropriations  

3.2.2. Estimated output funded with operational appropriations  

3.2.3. Summary of estimated impact on administrative appropriations 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Agreement on the withdrawal of the United Kingdom of Great Britain and Northern 
Ireland from the European Union and the European Atomic Energy Community 

1.2. 

Policy area(s) concerned  

25 – Commission's policy coordination and legal advice 

1.3. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project/preparatory action5  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action  

1.4. 

Objective(s) 

1.4.1.  General objective(s) 

The  agreement  is  based  on  the  Article  50(2)  of  the  TEU.  In  accordance  with  the 
guidelines  of  the  European  Council  (Article  50)  of  29  April  2017,  the  withdrawal 
agreement aims at 

• 

• 

• 

• 

• 

• 

• 

providing  clarity  and  legal  certainty  with  respect  to  situations  created  by  the 
United  Kingdom's  withdrawal  from  the  Union  for  citizens  but  also  for 
businesses, stakeholders and international partners,  

protecting  citizens  who  have  built  their  lives  on  the  basis  of  rights  flowing 
from the United Kingdom's membership to the Union; 

settling the disentanglement of the United Kingdom from the Union and from 
all the rights  and  obligations  the United Kingdom  derives from  commitments 
undertaken as Member State, 

defining time-limited transitional arrangements which are in the interest of the 
Union, 

ensuring  that  the  Union  and  the  United  Kingdom  both  respect  the  financial 
obligations  resulting  from  the  whole  period  of  the  UK  membership  in  the 
Union 

providing  for  effective  management,  implementation  and  enforcement  of  the 
agreement,  including  through  institutional  structures  and  an  effective  dispute 
settlement  mechanism  preserving  the  role  of  the  Court  of  Justice  of  the 
European Union as the ultimate arbiter on matters of Union law,  

continuing  to  support  the  goal  of  peace  and  reconciliation  enshrined  in  the 
Good  Friday  Agreement  in  all  its  parts,  and  to  support  and  protect  the 

5 

As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 

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achievements, benefits and commitments of the Peace Process in the island of 
Ireland 

• 

• 

protecting  the  interests  of  Cypriots  who  live  and  work  in  the  Sovereign  Base 
Areas and ensuring no disruption and loss of rights after the United Kingdom's 
withdrawal, 

providing  for  close  cooperation  between  Spain  and  the  United  Kingdom  in 
respect of Gibraltar on the implementation of the Withdrawal Agreement, and 
in particular the citizens' rights part, and in a number of other policy areas. 

1.4.2. 

Specific objective(s) 

Specific objective(s) 

N/a 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The Withdrawal agreement between the Union and the UK will bring reassurance to 
European citizens, business and international partners that there will be no disorderly 
and uncontrolled withdrawal of the United Kingdom from the Union. 

The only budgetary impact of the Withdrawal agreement results from establishment 
of the Joint Committee, composed of representatives of the Union and of the United 
Kingdom. The Joint Committee will supervise and facilitate the implementation and 
application  of  the  Withdrawal  agreement,  decide  on  the  tasks  of  the  specialized 
committees and supervise their work and make amendment to the Agreement where 
specifically provided for in the Agreement itself. The Agreement also foresees a role 
for the Joint Committee in dispute settlement, which is addressed in Title 3 of Part 
Six of the Withdrawal Agreement.  

The Joint Committee will meet at least once a year, at the request of either party. The 
following  specialized  committees  will  operate  under  the  control  of  the  Joint 
Committee,  i.e.  one  sub-committee  for  each  of  the  main  parts  of  the  Withdrawal 
Agreement:  

(a) 

(b) 

the Committee on citizens' rights; 

the Committee on the other separation provisions; 

the  Committee  on  issues  related  to  the  implementation  of  the  Protocol  on 

(c) 
Ireland/Northern Ireland; 

the Committee on issues related to the implementation of the Protocol relating 

(d) 
to the Sovereign Base Areas in Cyprus;  

the  Committee  on  issues  related  to  the  implementation  of  the  Protocol  on 

(e) 
Gibraltar; and 

(f) 

the Committee on the financial provisions. 

1.4.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

N/a 

EN 

20 

  EN 

 
1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

Ensure the orderly withdrawal of the UK from the Union. 

1.5.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the  value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

An  orderly  withdrawal  of  the  United  Kingdom  from  the  Union  is  in  the  interest  of 
both the Union and the United Kingdom, in particular by providing legal certainty to 
citizens  and  companies  on  both  sides  of  the  Chanel.  The  Withdrawal  agreement  is 
necessary to mitigate any negative effects on the European economy and the Union 
budget, protect the rights of the European citizens living and working in the United 
Kingdom, as well as safeguard the goal of peace and reconciliation in the island of 
Ireland, as enshrined in the Good Friday Agreement. 

EN 

21 

  EN 

 
1.5.3.  Lessons learned from similar experiences in the past 

N/a 

1.5.4.  Compatibility  with  the  Multiannual  Financial  Framework  and  possible  synergies 

with other appropriate instruments 

N/a 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

N/a 

1.6. 

Duration and financial impact of the proposal/initiative 

 limited duration  

–    in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial  impact  from  YYYY  to  YYYY  for  commitment  appropriations  and 

from YYYY to YYYY for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) planned6  

 Direct management by the Commission 

–    by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–   the EIB and the European Investment Fund; 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

6 

Details of management modes and references to the Financial Regulation may be found on the 
BudgWeb site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

EN 

22 

  EN 

 
                                                 
 
–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

EN 

23 

  EN 

 
 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The  Joint  Committee  will  issue  an  annual  report  on  the  functioning  of  the 
Agreement. 

2.2.  Management and control system(s)  

2.2.1. 

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed 

N/a 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

N/a 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control 
costs ÷ value of the related funds managed"), and assessment of the expected levels 
of risk of error (at payment & at closure)  

N/a 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. 

EN 

24 

  EN 

 
 
 
3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Number  
5 
[Heading Administration] 

Diff./Non-
diff.7 

from 
EFTA 
countries8 

from 
candidate 
countries9 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

Heading of 
multiannual 
financial 
framework 

XX  01  01  01  Expenditure  related  to 
officials  and  temporary  staff  working 
with the Institution. 

XX  01  02  11  01  Mission  and 
representation expenses 

Non-
diff. 

Non-
diff. 

  New budget lines requested  

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

Heading of 
multiannual 
financial 
framework 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Number  
[…][Heading…………………………………
……] 

Diff./Non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

[…][XX.YY.YY.YY] 

YES/N
O 

YES/N
O 

YES/N
O 

YES/NO 

7 
8 
9 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

25 

  EN 

 
 
 
 
 
 
 
 
                                                 
 
3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–    The proposal/initiative requires the use of operational appropriations, as explained below: 

EUR million (to three decimal places) 

Year 
N10 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

Heading of multiannual financial  
framework  

Number 

DG: <…….> 

 Operational appropriations  

Budget line11 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes12  

Budget line 

TOTAL appropriations 

Commitments 

(3) 

=1a+1b 
+3 

10 

11 
12 

EN 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for the 
following years. 
According to the official budget nomenclature. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

26 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
for DG <…….> 

Payments 

=2a+2b 

+3 

 TOTAL operational appropriations  

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADING <….> 
of the multiannual financial framework 

Commitments 

=4+ 6 

Payments 

=5+ 6 

If more than one operational heading is affected by the proposal / initiative, repeat the section above: 

  TOTAL  operational  appropriations  (all 
operational headings) 

Commitments 

Payments 

 TOTAL appropriations of an administrative nature financed 
from  the  envelope  for  specific  programmes  (all  operational 
headings) 

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

Payments 

=5+ 6 

EN 

27 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative 
Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes. 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6)  

TOTAL 

EUR million (to three decimal places) 

DG: SG (and potentially SJ, …) 

 Human resources  
 Other administrative expenditure  

286 000 

286 000 

286 000 

286 000 

2 000 

2 000 

2 000 

2 000 

TOTAL DG 

Appropriations 

288 000 

288 000 

288 000 

288 000 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

288 000 

288 000 

288 000 

288 000 

Year 
N13 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  

Commitments 

288 000 

288 000 

288 000 

288 000 

13 

EN 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for the 
following years. 

28 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
under HEADINGS 1 to 5 
of the multiannual financial framework  

Payments 

288 000 

288 000 

288 000 

288 000 

3.2.2.  Estimated output funded with operational appropriations  

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

o
N

Cost  N

o

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost  N

o

Cost  N

o

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type14 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 115… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

14 
15 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’  

EN 

29 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
3.2.3. 

Summary of estimated impact on administrative appropriations  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
N 16 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

286 000 

286 000 

286 000 

286 000 

2 000 

2 000 

2 000 

2 000 

288 000 

288 000 

288 000 

288 000 

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 517 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

288 000 

288 000 

288 000 

288 000 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the action and/or have been redeployed  within the 
DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
allocation procedure and in the light of budgetary constraints. 

16 

17 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first 
year of implementation (for instance: 2021). The same for the following years. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU programmes 
and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

30 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
3.2.3.1.  Estimated requirements of human resources  

–    The proposal/initiative does not require the use of human resources.  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full time equivalent units 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

 Establishment plan posts (officials and temporary staff) 

XX 01 01 01 (Headquarters and Commission’s Representation 
Offices) 

2 

2 

2 

2 

XX 01 01 02 (Delegations) 

XX 01 05 01/11/21 (Indirect research) 

10 01 05 01/11 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)18 

XX 01 02 01 (AC, END, INT from the ‘global envelope’) 

XX 01 02 02 (AC, AL, END, INT and JPD in the delegations) 

XX 01 04 yy 19 

- at Headquarters 

- in Delegations  

XX 01 05 02/12/22 (AC, END, INT - Indirect research) 

10 01 05 02/12 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

XX is the policy area or budget title concerned. 

2 

2 

2 

2 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

Preparation,  participation  and  follow  up  of  the  meetings  of  the  Joint  Committee. 
Preparation and adoption of an annual report on the functioning of the Agreement. 

External staff 

18 

19 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JPD= Junior Professionals in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

31 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
3.2.4.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–    can be fully financed through redeployment within the relevant heading of the 

Multiannual Financial Framework (MFF). 

The proposal only implies administrative expenditure which will be identified by redeployment during 
the exercise of allocation of resources. 

–    requires use of the unallocated margin under the relevant heading of the MFF 

and/or use of the special instruments as defined in the MFF Regulation. 

Explain  what  is  required,  specifying  the  headings  and  budget  lines  concerned,  the  corresponding 
amounts, and the instruments proposed to be used. 

–    requires a revision of the MFF. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

3.2.5.  Third-party contributions  

The proposal/initiative: 

–    does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

Year 
N20 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed  

20 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the 
expected first year of implementation (for instance: 2021). The same for the following years. 

EN 

32 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

 

 

 

on own resources  

on other revenue 

please indicate, if the revenue is assigned to expenditure lines  

Appropriations 
available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

     EUR million (to three decimal places) 

Impact of the proposal/initiative21 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For assigned revenue, specify the budget expenditure line(s) affected. 

Other  remarks  (e.g.  method/formula  used  for  calculating  the  impact  on  revenue  or  any  other 
information). 

21 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20 % for collection costs. 

EN 

33 

  EN