Background
On Thursday 18 and Friday 19 February, the EU’s 28 Heads of State met at the European Council in Brussels to negotiate a settlement deal on the UK’s relationship with Europe. The UK sought changes in its membership to certain EU policies on migration, social welfare benefits, sovereignty and financial protection. Also on the agenda for the meeting were the subjects of migration and the refugee crisis.

The Summit
The UK’s reform demands sought changes in four separate areas, which were referred to in negotiations as ‘baskets’:

• Migration
• Social welfare
• Sovereignty
• Financial protection.

The talks concluded late in the evening of Friday 19 February with unanimous agreement on the settlement negotiation.

The Deal
The renegotiated deal addressed each of the four baskets to which the UK sought reform. Under the deal, the UK will receive a ‘Special Status’ within the EU, the details of which are outlined below.

In the baskets concerning migration and social welfare:

Migrant social welfare payments: Limitations can be placed on ‘in-work benefits’ for migrants from the EU during the first four years of their time in the UK. This “emergency brake” can be activated in the event of “exceptional” levels of migration, but must be removed within seven years.

Child benefit: The calculation of child benefit payments sent from the UK to children overseas will take into account the cost of living in the recipient nation. This will mean reduced payments to many who are claiming benefits for a child or children not resident in the UK

Changes to freedom of movement: Under the new settlement, the right to free movement will not be automatically afforded to nationals of a country outside the EU who marry an EU citizen. There are also new powers that permit the exclusion of individuals believed to be a security risk, even if they have no prior convictions.

Concerning financial protection:
Protection for the City of London: Measures will be put in place to protect Britain’s large financial services industry to in order to prevent unwanted Eurozone regulations being imposed upon it.

Eurozone and bailouts: Any British money spent on bailing out Eurozone nations will be reimbursed. The UK can retain the Pound Sterling while in Europe, without fear of discrimination relating to its trade within the region

Competitiveness: The cutting of red tape by new measures agreed within the settlement encourages all EU institutions and Member States to “make all efforts to fully implement and strengthen the internal market” and to take more solid steps towards better, fairer regulation.

Concerning sovereignty:
Sovereignty: The settlement contains a specific commitment that the UK will not become part of an ‘Ever Closer Union’.

‘Red card System’ for national parliaments: The new system will make it easier for Member States to band together to veto unwanted legislation. If 55% or more of national EU parliaments object to a proposed piece of EU legislation, it may be rethought or redesigned.

Other Subjects
The following topics were also discussed at the Summit in Brussels:

• The management of external borders
• The acknowledgment that there is a need to gradually return to a situation where all members of the Schengen Area fully adhere to the Schengen Borders Code
• The implementation of decisions on readmission, relocation and returns
• Progress made in the implementation of the EU-Turkey Action Plan
• The provision of humanitarian assistance to Syrian refugees, including cooperation from Western Balkan States

The European Council also welcomed the decision of the North Atlantic Treaty Organisation (NATO) to assist in the conduct of reconnaissance, monitoring and surveillance of illegal crossings in the Aegean Sea and calls on all members of NATO to support this measure actively.

With regards to Syria, the European Council called on the Syrian regime and its allies to stop attacking non-terrorist opposition groups as it threatens prospects for peace, benefits Da’esh and drives the refugee crisis

Further to this, a special meeting of EU leaders will arranged for Turkey in March.

The Referendum

Following the close of the talks in Brussels, the UK Cabinet met in London and decided upon Thursday 23 June 2016 as the date for the referendum. The electorate of over 45 million will comprise:

• All UK citizens over the age of 18 and resident in the UK
• All UK citizens over the age of 18 who are resident overseas for less than 15 years
• Members of the House of Lords
• Irish and Commonwealth citizens over the age of 18 who are resident in the UK
• Commonwealth citizens over the age of 18 in Gibraltar

All other EU citizens resident in the UK will not be eligible to vote.

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