President Sassoli, in his replies to journalists after the statement, said: “Ask yourselves this: why does everyone want to divide us today? Because when there are common rules, we live better and defend those who are weaker. Where there are no rules, only the strongest prevail. Perhaps those who want to divide us are afraid of a world with rules. At this moment, I believe that the EU’s importance lies in the answer that we are able to give to this question. Not only for us, but for a global world that has to live by rules. Without rules, the strongest will prevail and the weakest will be excluded. And the EU does not want that”.

Following yesterday’s meeting in France at the House of Jean Monnet to reflect on the future challenges facing the European Union, Presidents Sassoli, Michel and Von der Leyen made statements today at the Parlamentarium visitors’ centre in Brussels.

Future of Europe: statement by David SASSOLI, European Parliament President

Future of Europe: statement by Charles MICHEL, European Council President

Future of Europe: statement by Ursula VON DER LEYEN, European Commission President

The departure of the United Kingdom marks a new chapter in the history of the European Union. Today’s statements aim to look ahead at the specific internal and external challenges that need to be addressed in the years ahead and how to involve citizens, civil society and national parliaments more in the discussions and decision-making that will shape Europe’s future.

This background note gives a brief overview of imminent changes that will take place once the Withdrawal Agreement comes into effect on 1 February 2020.

Parliament’s composition after Brexit

As a non-EU country, the UK will no longer be represented at EU level, so Parliament will be composed of 705 seats instead of 751. Of the 73 UK seats in the European Parliament, 27 will be redistributed to member states and the remaining 46 will be held in reserve for future EU enlargements.

Under the new set-up, no member state will lose any MEPs. A few countries will see an increase in their number of representatives, in line with the new relative population sizes of member states, while the new distribution also ensures a minimum level of representation for the smallest EU countries. Member states that will see an increase in the number of MEPs are expected to announce or confirm their names to the Parliament. Their term will officially start on 1 February 2020.

Who are the new MEPs?

All 27 MEPs that will take up office on 1 February 2020 were elected at the May 2019 European Elections. In line with the 1976 electoral act, member states have to notify the European Parliament of the names of the new MEPs taking up their seats before their mandates can officially start.

Depending on national rules, some names have already been confirmed , while others are still pending. You can find all current MEPs on the European Parliament’s dedicated webpage.

Changes to parliamentary committees and subcommittees

The number of members sitting in the European Parliament’s committees and subcommittees changes as shown below. The new composition will become effective immediately after the UK’s withdrawal from the EU.

Parliament’s political groups will decide on the membership of each committee and subcommittee after the new MEPs take their seats. According to Parliament’s Rules of Procedure (Rule 209), their composition should as far as possible reflect that of Parliament as a whole. Read more here.

Some committees and subcommittees will also need to elect new chairs, vice-chairs and coordinators, since a number of UK MEPs will be leaving these posts on 31 January 2020.

The Chairs and Vice-Chairs that will have to be replaced are:

Chris DAVIES (RE, UK), Chair, Fisheries

Lucy NETHSINGHA (RE, UK), Chair, Legal Affairs

Seb DANCE (S&D, UK), Vice-Chair, Environment, Public Health and Food Safety

Julie WARD (S&D, UK), Vice-Chair, Culture and Education

Irina VON WIESE (RE, UK), Vice-Chair, Human Rights Subcommittee

The Coordinators that will have to be replaced are:

Shaffaq MOHAMMED (Renew, UK), Deputy Coordinator, Culture and Education

Jude KIRTON-DARLING (S&D, UK), Coordinator, Petitions

Irina VON WIESE (Renew, UK), Coordinator, Human Rights Subcommittee

Geoffrey VAN ORDEN (ECR, UK), Coordinator, Security and Defence Subcommittee

Changes to interparliamentary delegations

Interparliamentary delegations will also be affected by the UK’s withdrawal from the EU. The Chairs and Vice-Chairs that will have to be replaced are:

Catherine BEARDER (RE, UK), 1st Vice-Chair, Political Committee, ACP-EU

Judith BUNTING (RE, UK), Vice-Chair, Korean Peninsula

Richard CORBETT (S&D, UK) Vice-Chair, Afghanistan

Dinesh DHAMIJA (RE, UK), Chair, India

Neena GILL (S&D, UK), Chair, Japan; 12th Vice-Chair, ACP-EU

Martin HORWOOD (RE, UK), 1st Vice-Chair, Iran

John HOWARTH (S&D, UK), 1st Vice-Chair, South Asia

Jackie JONES (S&D, UK), 1st Vice Chair, United States

Nosheena MOBARIK (ECR, UK), Chair, South Asia

Rory PALMER (S&D, UK), 2nd Vice-Chair, Australia/New Zealand

Molly SCOTT CATO (Greens, UK), 2nd Vice-Chair, Mercosur; 1st Vice-Chair, Development/Energy Committee, Eurolat

Caroline VOADEN (RE, UK), 1st Vice-Chair, Arab Peninsula

Future relationship negotiations

With the withdrawal of the UK now effective, a new chapter of negotiations begins, centred on the future relationship between the EU and the UK. Even though the UK is now a non-EU country, the challenges that both sides are facing remain common and both sides have much to gain from working together.

Issues to be discussed and which will form part of an agreement in the near future range from the fight against climate change to terrorism threats, and from cooperation in research to shared defence structures. Trade conditions and principles between the EU and the UK will be a major point in the negotiations.

The transition period starting on 1 February is set to expire at the end of December 2020. Any agreement on the future EU-UK relationship will have to be fully concluded before that point if it is to come into force on 1 January 2021. The transition period can be extended once for one to two years, but the decision to do so must be taken by the EU-UK Joint Committee before 1 July.

Parliament will have to approve any future relationship agreement. If such an agreement refers to competences that the EU shares with member states, then national parliaments will also need to ratify it.

The EP will follow closely the work of the EU negotiator Michel Barnier and continue to influence the negotiations through resolutions. Parliament’s UK coordination group, led by Foreign Affairs Committee Chair David McAllister (EPP, DE), will liaise with the EU Task Force for Relations with the United Kingdom and coordinate with all competent committees.

The new Investment Firms Regulation (EU) No 2019/2033 (IFR) and Directive (EU) 2019/2034 (IFD) introduced changes to MiFIR and MiFID II regimes for the provision of investment services and activities in the EU by third-country firms.

These changes include new reporting requirements from third-country firms to ESMA on an annual basis in accordance with Article 46 of MiFIR, and also grants ESMA the power to ask third-country firms in the ESMA register to provide data relating to all orders and all transactions in the EU, whether on own account or on behalf of a client, for a period of five years. 

ESMA is mandated by the IFR and the IFD to develop draft Technical Standards (1 draft RTS and 1 draft ITS under IFR and 1 ITS under IFD) setting out the functioning of this new regime. The draft Technical Standards will be submitted to the European Commission for the adoption of the final legal text.

Proposed Technical Standards

ESMA is mandated to prepare draft technical standards in relation to the revised third-country regime under MiFIR and MiFID II.

In particular, in accordance with Article 46(7) and (8) of MiFIR, ESMA will develop:

1. Draft regulatory technical standards to specify the information that third-country firms must provide to ESMA for the registration in the ESMA register of third-country firms and for the information that third-country firms have to report annually to ESMA;
2. Draft implementing technical standards to specify the format in which the information for the registration of the firm and for the annual report to ESMA should be submitted.

While branches of third-country firms authorised under Article 39 of MiFID II remain under the supervisory responsibility of the competent authorities of the Member State where they have been authorised, the IFD amends MiFID II to provide for further reporting obligations on such branches to the competent authorities of the Member State where they are established. In accordance with Article 41(5) of MiFID II, ESMA shall develop draft

1. Draft implementing technical standards to specify the format in which the new flow of information provided by MIFID II is to be reported to NCAs by branches of third-country firms.

Next Steps

ESMA will consider the responses to this consultation when developing the draft Technical Standards for the European Commission. The closing date for responses from stakeholders is 31 March 2020. Please submit your contributions online via ‘Your input – Consultations’.

Who should read this paper

This paper is primarily of interest to third-country firms providing investment services and activities in the Union either (i) on a cross-border basis according to the national law of their host Member State or (ii) though a branch in accordance with Chapter IV (Provision of investment services and activities by third country firms) of Title II (Authorisation and operation conditions for investment firms) of Directive 2014/65/EU of the European Parliament and of the Council (MiFID II), and their third-country competent authorities. This paper may also be of interest to competent authorities in the Union and firms that are subject to MiFID II and MiFIR

Responding to this paper  

ESMA invites comments on this paper and in particular on the specific questions summarised in Annex I. Comments are most helpful if they:

• respond to the question stated;
• indicate the specific question to which the comment relates;
• contain a clear rationale; and
• describe any alternatives ESMA should consider.

ESMA will consider all comments received by 31 March 2020.  

All contributions should be submitted online at www.esma.europa.eu under the heading ‘Your input – Consultations’.

As the night draws in this evening, the sun will set on more than 45 years of the United Kingdom’s membership of the European Union. For us, as Presidents of the three main EU institutions, today will inevitably be a day of reflection and mixed emotions – as it will for so many people.

Our thoughts are with all of those who have helped to make the European Union what it is today. Those who are concerned about their future or disappointed to see the UK leave. Those British members of our institutions who helped shape policies that made lives better for millions of Europeans. We will think of the UK and its people, their creativity, ingenuity, culture, and traditions, that have been a vital part of our Union’s tapestry.

These emotions reflect our fondness for the United Kingdom – something which goes far beyond membership of our Union. We have always deeply regretted the UK’s decision to leave but we have always fully respected it, too. The agreement we reached is fair for both sides and ensures that millions of EU and UK citizens will continue to have their rights protected in the place they call home.

At the same time, we need to look to the future and build a new partnership between enduring friends. Together, our three institutions will do everything in their power to make it a success. We are ready to be ambitious.

How close that partnership will be depends on decisions that are still to be taken. Because every choice has a consequence. Without the free movement of people, there can be no free movement of capital, goods and services. Without a level playing field on environment, labour, taxation and state aid, there cannot be the highest quality access to the single market. Without being a member, you cannot retain the benefits of membership.

Over the next weeks, months and years we will have to loosen some of the threads carefully stitched together between the EU and the UK over five decades. And as we do so, we will have to work hard to weave together a new way forward as allies, partners and friends.

Whilst the UK will cease to be an EU member, it will remain part of Europe. Our shared geography, history and ties in so many areas inevitably bind us and make us natural allies. We will continue to work together on foreign affairs, security and defence with a common purpose and shared mutual interests. But we will do it in different ways.

We do not underestimate the task that lies before us but we are confident that with goodwill and determination we can build a lasting, positive and meaningful partnership.

But tomorrow will also mark a new dawn for Europe.

The last few years have brought us closer together – as nations, as institutions and as people. They have reminded us all that the European Union is more than a market or economic power but stands for values that we all share and defend. How much stronger we are when we are together.

This is why the Member States of Europe will continue to join forces and build a common future. In an age of great power competition and turbulent geopolitics, size matters. No country alone can hold back the tide of climate change, find the solutions to the digital future or have a strong voice in the ever-louder cacophony of the world.

But together, the European Union can.

We can because we have the largest internal market in the world. We can because we are the top trading partner for 80 countries. We can because we are a Union of vibrant democracies. We can because our peoples are determined to promote European interests and values on the world stage. We can because EU member states will leverage their considerable, collective economic power in discussions with allies and partners – the United States, Africa, China or India.

All of this gives us a renewed sense of shared purpose. We have a common vision of where we want to go and a commitment to be ambitious on the defining issues of our times. As set out in the European Green Deal, we want to be the first climate neutral continent by 2050, creating new jobs and opportunities for people in the process. We want to take the lead on the next generation of digital technologies and we want a just transition so that we can support the people most affected by change.

We believe only the European Union can do this. But we know we can only do it together: people, nations, institutions. And we, as Presidents of the three institutions, are committed to playing our part.

That work continues as soon as the sun rises tomorrow.