UK contradicts EU over location of agencies after Brexit

The future location of the two EU agencies based in London will be a matter for Brexit negotiations, the British government's Brexit department said on Monday, despite statements by EU officials that there was no doubt the organisations would be moved.

London is currently home to both the European Medicines Agency (EMA) and the European Banking Authority (EBA).

Last month, the EU’s draft plan for Brexit negotiations said arrangements should be made to transfer the two agencies to another state within the EU.

EU officials said European Council president Donald Tusk aimed to set out some procedures for making the choices for the future locations of the agencies by the time EU leaders meet next on April 29th.

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However, a spokeswoman for Britain’s Brexit department said in a statement on Monday: “No decisions have been taken about the location of the European Banking Authority or the European Medicines Agency, these will be subject to the exit negotiations.

“As part of these negotiations, the government will discuss with the EU and member states how best to continue co-operation in the fields of banking and medicines regulation, in the best interests of both the UK and the EU.

“It would not be appropriate to prejudge the outcome of the negotiations.”

EU officials say there is no question of Britain keeping the EMA and EBA, whatever ties it may keep with the agencies after Brexit.

Only member states could accommodate the agencies, one said, adding: “The agencies are lost. You cannot have your cake and eat it.”

In the draft Brexit negotiating guidelines, issued on March 31st and broadly endorsed by the EU’s 27 remaining member states last week, Mr Tusk made clear the UK has no say in the location of the agencies: “The future location of the seats of EU agencies and facilities located in the UK is a matter for the 27 member states.”

He added: “Arrangements should be found to facilitate their transfer.”

Negotiating positions

Leaders of the 27 remaining members states meet in Brussels later this month to finalise their opening negotiating positions.

Securing the headquarters of EU agencies is a traditional blood sport at EU summits, where fierce national arguments often erupt before decisions are taken.

Most of the 27 have expressed an interest in hosting both the EMA and EBA.

EU officials doubt any final decisions can be made in the coming months, but say leaders do want to ease uncertainty for existing staff and allow time for recruitment and the development of necessary infrastructure in the agencies’ new locations before the UK leaves the union in March 2019.

Earlier this month, the EMA’s executive director told Reuters it was preparing to pack its bags and relocate and called for a quick decision on the agency’s new home.

The EMA, which approves and monitors the safety of drugs across Europe, employs nearly 900 staff, while the EBA, which co-ordinates EU banking rules, has 160 staff.

Reuters