Brexit: How business leaders, economists and strategists reacted to the breakthrough in negotiations

‘Today’s announcement will lift spirits in the run up to Christmas ... sufficient progress is a present they’ve spent months waiting for’

‘Business will particularly cheer the mutual commitment to a transition period to support business confidence and trade,’ said British Chamber of Commerce (AFP/Getty)

Business leaders across the UK appeared to breathe a sigh of relief on Friday, as news emerged that British and European negotiators had achieved enough progress in Brexit talks to move on to the next phase of negotiations.

Here’s a look at what some of the country's biggest lobby groups, strategists and economists had to say.

Josh Hardie, deputy director general of the Confederation of British Industry

“The breakthrough in Brussels shows that where there is a will, there is a way.

“Firms have been watching negotiations closely, and today’s announcement will lift spirits in the run up to Christmas. Sufficient progress is a present they’ve spent months waiting for.

“It’s now time to focus on the true prize of a new relationship and a deal that starts from 40 years of economic integration. With the same willpower shown today and jobs and living standards at the heart of every negotiating objective, these talks can set the UK up for the next 40 years of close alignment.

Adam Marshall, director general of the British Chambers of Commerce

“Businesses will be breathing a sigh of relief that ‘sufficient progress’ has been achieved. After the noise and political brinksmanship of recent days, news of a breakthrough in the negotiations will be warmly welcomed by companies across the UK.

“Business will particularly cheer the mutual commitment to a transition period to support business confidence and trade, and will want the details confirmed swiftly in the new year when negotiators move on to the big questions around our future trade relationship with the EU.

“For business, a swift start to trade talks is crucial to upcoming investment and growth decisions. Companies all across the UK want absolute clarity on the long-term deal being sought, and want the Government to work closely with business experts to ensure that the details are right.”

Stephen Martin, director general of the Institute of Directors

"It went right down to the wire, but businesses will be breathing a huge sigh of relief that the UK and European Commission have reached agreement on phase one issues, putting us in a good position going into the Council meeting next week. It doesn’t mean the hard work has all been done – far from it, but it does mean we are now very close to discussing transitional arrangements and our future trading relationship with the EU.

“The most pressing concern for UK companies has been their EU staff, who have urgently needed certainty about their future in this country. We have grounds to hope now that our members will be able to send their employees off for the Christmas break feeling more comfortable about their status here.

"We call on the UK and EU to build on this positive momentum going into the new year. It is overwhelmingly in the interests of both sides to begin working on our future economic relationship – particularly in order to fully address the Irish question.

“And we look forward to further clarity about what the UK's objectives are for that new relationship, as well as a firm commitment on transition in the very near future.”

Karen Ward, chief market strategist for Europe and the UK at JP Morgan Asset Management

“Completing phase one of the Brexit negotiations is a very significant step – the next most pressing area to reach agreement is transition. Removing uncertainty around transition arrangements would serve as a tremendous relief to businesses on both sides of the continent, given supply chains are highly integrated. It may also prevent financial companies in the UK enacting contingency plans at this stage.

"The agreement on the end-state relationship is highly complex. In this discussion, both sides will have to reveal what compromises they are willing to make. The UK will have to assess whether it is willing to concede on control of its laws, its borders and its payments to the EU as a price worth paying for access to the single market.

“Compromise will be made on both sides. Given the political results in 2017 on the continent and the fact that, with the recovery, support for the euro is rising, the EU should feel more internally confident. It may feel less inclined to make an example of the UK with a particularly punitive deal and instead wish to avoid near-term supply chain dislocations that could result from a no-deal scenario.”

Miles Celic, chief executive officer of TheCityUK

“This agreement in principle between the UK and the EU to move beyond phase one is a positive and encouraging step in the negotiations. We now look to next week’s European Council meeting to see these recommendations endorsed.

“For the financial and related professional services industry, our critical issues must now be progressed. Negotiating arrangements on a transition with robust legal and regulatory underpinnings must be an absolute priority. The sand in the timer is running out: leave it too late and damage will be done to both the UK and the EU. European competitiveness will ultimately be weakened as functionality will likely leave Europe for other international financial centres.”

Stephen Jones, chief executive of UK Finance

“Today’s announcement is certainly a positive step, making important progress in the negotiations and bringing a welcome and significant clarity on the rights of EU citizens living and working in the UK. But the agreement on phase one issues is just the start – we now need to see the detail and further action on those issues that will determine the real impact of Brexit on the economy, consumers and jobs.

“Businesses need to see clear progress in the New Year on the future trading relationship, and how we will transition to any new arrangements to ensure we can continue to meet the needs of customers.”

Chris Cummings, chief executive officer of The Investment Association

“The announcement is a welcome step which allows businesses to set aside plans for a disastrous no-deal scenario, and firms can now focus their attention on planning for a more positive outcome and looking after their savers and investors across the UK and EU.

“This is particularly welcome news for the millions of EU citizens and their families living in the UK, on whom many high-skilled industries like ours depend. They have been given the clearest sign to date that they will be allowed to remain in the UK.

“We now look forward to working with the UK government and our European partners to help to shape the transition period and the ensuing free trade agreement that will govern our future relationship. Top of our list of priorities is making sure regulatory cooperation agreements are in place to protect financial stability, and working towards a new regulatory architecture that will help the industry prosper long term.”

Kallum Pickering, economist at Berenberg

“Now that firms and households will likely expect that a soft Brexit has become more likely, the global upturn can now begin to rub off on the UK more next year.

“Higher business and household confidence from the lower risk of a hard Brexit should underpin stronger gains in long-lived consumption and investment.”

David Owen, economist at Jefferies

“Suitably ambiguous when it comes to the problem of the Irish border – this will be seen by some as increasing the odds of this being a soft Brexit – and with no figure on the ultimate financial settlement, but at least negotiations can move on.”