EU, UK in 'touching distance' of deal on citizens' rights, May says

The European Union and Britain are "in touching distance of an agreement" on citizens' rights -- one of three areas holding up progress in talks about the UK's withdrawal from the bloc -- Prime Minister Theresa May said.

Her comments came in an open letter to over 100,000 EU nationals living in the UK who have signed up to a mailing list held by the Home Office. It was also posted on the premier's Facebook page and comes before a two-day European Council meeting in Brussels which starts on Thursday. There EU leaders will discuss Brexit without May.

"I know both sides will consider each other's proposals for finalising the agreement with an open mind," May wrote. "With flexibility and creativity on both sides, I am confident that we can conclude discussions on citizens' rights in the coming weeks."

The UK is expected to leave the bloc in March 2019.

The EU wants 'sufficient progress' on the rights issue, how much Britain will pay for commitments made before it leaves and Northern Ireland's border with the Republic, which will become the only UK/EU land frontier. Only then will discussions move to trade and the future relationship -- issues that the UK wants to talk about now.

Michel Barnier, the lead EU Brexit negotiator said in Luxembourg on October 17 that 'sufficient progress' may only come in December.

Council President Donald Tusk said on Wednesday that there has been "promising progress" and he will recommend the 27 post-Brexit EU countries begin "internal preparations" on a possible transition stage for the UK and the future relationship.

The UK has proposed a two-year transition – or "implementation" – period for the country after Brexit, during which it will still adhere to the bloc's rules and regulations.   

May said that after Brexit there would be a "simple process" in place for EU nationals in the UK to swap their permanent residence for a new settled status. The cost to do that would be "as low as possible."

"EU citizens who have made their lives in the UK have made a huge contribution to our country," she said. "We want them and their families to stay. I couldn't be clearer: EU citizens living lawfully in the UK today will be able to stay."

The UK has "repeatedly flagged" issues regarding its nationals in the EU and wants the processes they will have to go through to be "equally streamlined," May said.

Britons voted in a referendum on June 23, 2016, to leave the EU. 

May triggered Article 50 of the Lisbon Treaty in March to set off the two-year negotiation process to complete talks about the terms of the exit.

(Alistair Holloway, alistair.holloway@wort.lu, +352 49 93 739)