(L-R): Patrick Birden, BCC; Sophie Kerschen, BCC; Joanna Denton, BCC Chairman; Viviane Reding, MEP, Ambassador John Marshall;

On Friday 26 January 2018, the British Chamber of Commerce in Luxembourg (BCC) held its first event of the next year at La Table du Belvedere in Luxembourg-Kirchberg.

Introduced by BCC board member Patrick Birden, Viviane Reding, MEP and former European Commissioner, addressed the 80-strong attendance on the topic of “Brexit: What’s Next?”; almost two years after the referendum (23 June 2016), the EU and the UK are finally moving on to the second phase of negotiations.

Viviane Reding outlined the main elements concerning citizens’ rights, financial settlements and Northern Ireland, as well as the key issues of the transitional period as well as for a future partnership, placing emphasis on the implications for Luxembourg and the UK, including for businesses and citizens.

She opened by saying that she had wished that this speech never needed to be given, delivering a strong personal message on where her thoughts and feelings lie. She stressed on making the European Union stronger and more sustainable, and mentioned other reforms including regarding immigration and asylum that will require a lot of work in the future. The talked also about funds handing out billions of euros to SMEs throughout the EU, emphasising the strength in numbers of the EU.

She described Brexit as lost time, and that the EU needs the exit to be clear before 29 March 2029. To do that we need three things: a clear withdrawl agreement and a smooth transition period as well as a negotiated future agreement.

The preliminary agreement is just 15 pages in length; she stressed this is an agreement in principle. One main issue is that citizens (UK citizens in the EU and EU citizens in the UK) should not have to bear the consequences of Brexit, including free movement throughout the EU and the UK.

On the financial agreement, the principle of the calculation methodology has been agreed, based on the current budget obligations of all Member States. On the issue of the border with the Republic of Ireland, she referred to the Good Friday Agreement and talked about the importance of the people in both countries; she described this as an unsolved problem as it is unclear how (and where) the border will happen.

On other issues, she said that there are no concessions. She described the Prime Minister of the Republic of Ireland as being very good and has talked with him about Brexit and the effects.
She also talked about the damage to trade. On Luxembourg, she referred to history and Luxembourg’s sovereignty where the economy has been dictated by its large and strong neighbours.

She acknowledged that she is not looking forward to dealing with Great Britain as a third country and would prefer that they would not be leaving; this feeling was a central message throughout her speech in which there were no holds barred.

She added that the negotiations will follow EU rules as it enters the second phase of negotiations. Other issues need to be solved too, including nuclear safety which needs a simple majority in the European Parliament and in the British Parliament.

She described her perspective on Brexit as Britain going to have what she described as the worst possible solution as they will want to have a continued relationship with the EU without having a say in how the EU operates.

On future models, she discounted the Norway model as financial aspects could not work; she also discounted the Ukraine model and the Turkey model (it is in the Customs union). She referred to the Lisbon Treaty (the EU would welcome back Britain) and the Canada model, but the latter does not have all trade issues wanted by Britain. One possibility could be an Association Agreement... She said that constitutional experts will see what can be done.

Other difficulties she foresees in the future will include data protection, etc.

She also counted around 1,000 agreements that the UK will need to renegotiate, including trade and other areas such as aviation rights. She described it as Britain’s greatest challenge since WWII, but acknowledged it could be seen as an opportunity.

She described divorce as better than a failed marriage and described it as an impossible task, and hopes that one day the British people will understand what it is all about, what problems needs to be solved and what solutions will be put forward. She concluded by referring to Britain having an informed population and a weak government.

The speech was followed by lunch being served, with Viviane Reding taking one question after the starter, concerning her views on the possibility of a two-speed EU emerging. Before she had time to answer, the fire alarm sounded and the building was evacuated. After just a short delay, everyone was allowed back to resume their meal.

Joanna Denton, BCC Chairman had opened the event and welcomed all members to the chamber’s first event of 2018, with the Members' New Year Cocktail to take place next week.​