On May 29, the European Commission (EC) published two draft papers (Position Papers) setting out the position that it will take in negotiations with the United Kingdom relating to citizens’ rights (CR Paper) and the financial settlement to be reached with the United Kingdom (FS Paper).

The CR Paper contains general principles relating to the treatment and status of EU and UK citizens after Brexit. It states that both EU and UK nationals should have the same level of protection they currently enjoy, including the right to permanent residency after five years of continuous residence; reciprocal equal treatment for EU citizens in the UK and vice versa; and legal residence being respected at the time of the UK’s withdrawal. The CR Paper also states that the EC should have full monitoring powers and the European Court of Justice should have jurisdiction relating to such rights.

The FS Paper sets out general principles relating to the financial statement, which will need to be made between the UK and EU on the UK’s withdrawal. The FS Paper envisages a single settlement and contains a list of the multitude of entities who will be included in the financial settlement, such as the European Central Bank, who will reimburse paid-in capital to the Bank of England.

The Position Papers are available here.