This report will collate all key activity from the last week in Westminster, Whitehall, the European Commission, and leading stakeholders as it relates to the pharmaceuticals sector and Brexit.

Table of Content

 EU: Brexit task force takes shape  EU: Junker makes State of the Union speech  EU: EP President says “no negotiation without notification”  UK: Transcript of committee inquiry on EU membership and science  UK: Written answer on and drug  UK: Chancellor holds round table with business  UK: Brexit and health inquiry launched by MPs  UK: Health and Care Innovation Expo takes place  UK: Media reports on shelved life sciences report  UK: International Trade secretary speech in Dubai  EU: Brexit’s impact on EU budget  EU: Leaders reflect on future of union  EU: Central European countries threaten to veto Brexit deal EU: Brexit task force takes shape

On September 14, the European Commission confirmed its decision to set up a Task Force for the preparation and conduct of the Brexit negotiations under Article 50 of the Treaty of the European Union. Former French Commissioner Michel Barnier, appointed as the Commission’s Chief Negotiator on Brexit in July, will lead this Task Force which will be responsible for coordinating all strategic, operational, legal and financial issues related to the negotiations. In setting up the Task Force, the Commission also appointed Sabine Weyand, currently Deputy Director-General in the Commission's Trade Department (DG Trade), as Deputy Chief Negotiator.

Commission President Jean-Claude Juncker said: “This new Task Force will be composed of the Commission's best and brightest. They will help Michel Barnier to conduct the negotiations with the United Kingdom effectively, benefiting from the deep knowledge and rich experience available across the whole Commission. Together, Michel and his team will live up to this new challenge and help us to develop a new partnership with the United Kingdom after it will have left the European Union.”

Although little is known about what concrete preparations the Commission has undertaken, Barnier has said that he expects the talks with the UK to be “tough”. Speaking to the French newspaper Ouest France, he expressed the view that the outcome of the UK referendum was a result of the EU’s “ultra- liberal drift,” whereby its citizens “feel they are not listened to.” Europe must therefore “prove again its added value for citizens,” he claimed.

Reports suggest that Barnier is planning to make a tour of EU capitals after he officially assumes his new role on October 1, in order to weigh up what Member States expect from the negotiations.

In addition to the Commission Task Force, the Council of the EU has set up its own Task Force for the negotiations with the UK, headed by Belgian diplomat Didier Seeuws. It is not yet clear, however, what the balance of responsibilities between both teams will be.

Members Area by using: EU: Junker makes State of the Union speech

Members Area by us

On September 14, Commission President Jean-Claude Juncker gave his annual State of the Union speech at the European Parliament in Strasbourg. His speech made only a passing reference to the issue of the UK’s pending withdrawal from the EU – he acknowledged the country’s decision to leave and hoped that the British Government would trigger Article 50 as soon as possible. The issue was touched upon in the following debate by Belgian liberal MEP Guy Verhofstadt, who was appointed on September 8 as the Parliament’s lead Brexit negotiator. The MEP argued that Brexit should be seen as an “opportunity” and that, while the British Government wants to make it a success for the UK, the EU also has a duty to make it a success for Europe. His comments came after being labelled a “fanatic” by British MEP Nigel Farage.

Also during the debate, Italian MEP Gianni Pittella, President of the Parliament’s Socialists and Democrats Group, expressed frustration with the delay in starting the Brexit negotiations, claiming that the British Prime Minister was holding the EU hostage. British MEP Syed Kamall, who leads the Parliament’s Conservative and Reformists Group, said that the result of the UK referendum should serve as a warning to other Member States about citizens’ growing discontent with European integration. Their legitimate concerns should not be dismissed, he warned. Following his address at the European Parliament, President Juncker also spoke about Brexit during his speech at the University of Zürich on September 19, marking the 70th anniversary of Winston Churchill’s ‘Europe speech’. He said: “We are now preparing for negotiations with our British friends, when our British friends get around to asking to leave. It is a source of considerable surprise to us that no such request has yet reached .” Regardless, he stressed that the EU is “not at war” with the UK and hoped to reach a “fair deal” with the country. EU: EP President says “no negotiation without notification”

On September 22, the European Parliament President Martin Schulz met with UK Prime Minister Theresa May and Mayor Sadiq Khan to discuss the future of UK-EU relations. Also, today – September 23 – he will hold a meeting with the leader of the UK Labour Party Jeremy Corbyn and deliver a speech at the London School of Economics on ‘The EU and Britain: parting ways but working together’.

Speaking to the Parliament Magazine website ahead of his visit, Schulz explained that the purpose of the visit was to “get a pulse from the British authorities on the state of affairs on Brexit and EU-UK relations” and that he would “reiterate the principle of no negotiation without notification.” Moreover, he expressed the hope that Article 50 would be triggered as early as possible in order to “limit uncertainty.”

UK: Speech by Prime Minister to the UN General Assembly

This week, the Prime Minister declared the UK's commitment as a confident and dependable partner in her first address to the UN General Assembly.

Theresa May said the UK would not "walk away from our partners in the world" and warned that people felt left behind by the "increasing pace of globalisation". May also held a series of face-to-face meetings with other leaders and take part in a summit on refugees called by US president Barack Obama.

UK: Transcript of committee inquiry on EU membership and science

The Science and Technology Select Committee has published the transcript of the meeting on Tuesday 13 September on EU membership and UK science. They took evidence from Professor Sir David Greenaway, Chair, the Russell group, and Vice- Chancellor, University of Nottingham; Professor David Phoenix OBE,

UK: Transcript of committee inquiry on EU membership and science

The Science and Technology Select Committee has published the transcript of the meeting on Tuesday 13 September on EU membership and UK science. They took evidence from Professor Sir David Greenaway, Chair, the Russell group, and Vice-Chancellor, University of Nottingham; Professor David Phoenix OBE, Chair, MillionPlus, and Vice-Chancellor, London South Bank University; and Dr Patrick Vallance, President, Pharmaceuticals R&D, GlaxoSmithKline (GSK). The committee is holding a short inquiry as a follow-up to the earlier report on the subject. UK: Written answer on biotechnology and drugs

Conservative MP for Bolton West Chris Green had tabled a written question on what plans the Chancellor had to engage with the bio-tech and pharmaceutical industry as part of that industry engagement.

In response this week, Chief Secretary to the Treasury David Gauke stated the Treasury regularly engaged with businesses from all sectors and valued the opportunity to hear their views. He said “over the next month, the Chancellor will be meeting with over 80 representatives from businesses of all sizes, and from a wide variety of sectors and regions, including the bio-tech and pharmaceutical industry”.

UK: Chancellor holds round table with business

The Chancellor Philip Hammond has this week met with British businesses from all over the country to listen to their views ahead of his first Autumn Statement. The roundtable events at the Treasury and Downing Street also included discussions around leaving the European Union, with the Chancellor urging businesses to make the most of the new opportunities that Brexit presents.

Attendees at the meetings have come from a cross section of Britain's leading business groups including the CBI, FSB and BCC where companies like BMW, British Airways, Sainsbury's, TSB and Shell UK and Ireland have all been represented. The Chancellor also discussed boosting UK growth and productivity with senior executives from John Lewis, Rolls Royce, BAE Systems and CISCO in a dedicated roundtable.

Media reports subsequently suggest many businesses are frustrated by the lack of a single point of contact in government to which business could represent its views. There are also reports this week that the UK prime minister’s official business advisory group is being dissolved with Downing Street saying May wanted to engage with business “in a different way” from her predecessor David Cameron, who used the group for set-piece consultations with bosses.

Members Area by using: UK: Brexit and health inquiry launched by MPs

The Health Committee invites written submissions on the priorities for health and social care in the negotiations on the UK's withdrawal from the European Union.

The evidence submitted to the Committee's pre-referendum inquiry into the impact of EU membership on health and social care has demonstrated the wide range of areas in which EU membership affects this policy area. The Committee is now seeking views on what the most important issues are to which attention will need to be paid in the withdrawal negotiations and what outcomes should be sought from them.

UK: Health and Care Innovation Expo takes

place

NHS organisations joined market experts and overseas decision makers this week to explore opportunities for international commercial collaborations at NHS England 's Health and Care Innovation Expo.

During the event, over 200 delegates attended Healthcare UK's seminar and meeting programme to explore commercial opportunities available around the world where the broad seminar programme involved a range of British speakers who gave their perspective on developing international activities in their organisations.

Specialists from Healthcare UK and the Department for International Trade shared their expertise in the healthcare sector in , India, Saudi Arabia, Kuwait and the UAE.

Members Area by using: UK: Media reports on life sciences report

The Scottish National Party highlighted media reports this week that a report by ABPI was shelved after the UK Government criticised its calls for continued free trade with the EU. The Times reported that industry leaders met the UK Government following a two-month consultation by ABPI only to be told that their demands were not "realistic".

The report warned that uncertainty over immigration rules following Brexit was "already making it difficult to attract and retain talent" and that it was "creating the negative impression that the UK is closed to foreign workers".

Commenting, SNP MSP Richard Lochhead said: "This is a serious intervention from a £60bn industry – one which deserves better than being waved away by Tory Ministers, dismissing industry leaders for being "unrealistic".

UK: International Trade secretary speech in Dubai

This week International Trade Secretary Liam Fox delivered a speech at Capital Club Dubai. He focused on areas where UK's and UAE's economic ties could continue to be strengthened.

He stated the UK would now be “quicker, than we have been, at identifying big-ticket exporting opportunities in high growth markets; we have already prioritised 31 across the Gulf, including here in the UAE. This not only covers traditional industries such as oil and gas or defence and infrastructure, but emerging areas like life sciences and creative.” EU: Brexit’s impact on EU budget

On September 14, the European Commission presented several proposals to revise its seven-year budget (the Multiannual Financial Framework) to increase flexibility, provide additional funding, and simplify financial rules for beneficiaries. As for how the changes to the financial framework will be affected by the UK’s exit from the EU, Commission Vice-President Kristalina Georgieva maintained many EU officials’ non -speculative line, but noted that the UK’s ambition for its future relationship with the EU will have budgetary implications.

For its part, the UK Treasury issued a statement in August offering some assurances for UK beneficiaries of EU funds, though critics say it falls short of providing real certainty. Agreements involving the Structural and Investment Funds and Horizon 2020 signed before the 2016 Autumn Statement will receive continued support from the UK government post-Brexit, according to Chancellor Philip Hammond.

Upcoming Brexit negotiations, as well as EU budget negotiations, will have to wrestle with how the EU adjusts to losing a large net contributor, but also the recipient of a large rebate, and how the UK will supplant the financing provided by the EU. EU: Leaders reflect on future of union

On September 16, the leaders of the 27 EU Member States – excluding the UK – met in Bratislava for an informal summit to discuss their views concerning the future of the EU. In a press conference following the summit, President of the European Council Donald Tusk stated that the future negotiations with the UK were not the main topic of discussion and reiterated the Council’s position that no formal talks can begin until the country triggers Article 50.

While stressing that the EU27 is well-prepared to start the negotiating process, he respected the fact that the UK required more time to prepare its position. Robert Fico, Prime Minister of Slovakia, which currently holds the six-month rotating Presidency of the Council of the EU, said that they wished to maintain close relations with the UK, but the interests of the other Member States must be protected during the negotiations and there can be no ‘cherry-picking’. Commission President Jean-Claude Juncker insisted that the EU would be sticking to the position that access to the internal market has to go hand-in -hand with respect for the internal market’s basic principles.

After the summit, the EU leaders also issued the Bratislava Declaration and Roadmap in which they outline their vision for the future of the EU.

EU: Central European countries threaten to veto Brexit deal Members Area by using:

On September 17, the day following the informal summit of EU leaders in Bratislava, Slovakian Prime Minister Robert Fico said that Slovakia, Hungary, Poland and the Czech Republic – known together as the Visegrad Group or V4 – would block any deal with the UK that would restrict their citizens’ rights to live or work in the country. In an interview with Reuters, the Prime Minister stated: “The V4 countries will be uncompromising. Unless we feel a guarantee that these people [living and working in Britain] are equal, we will veto any agreement between the EU and Britain.” On this point, he insisted that there would be “no room for compromise.” Lookahead — September/October

European Parliament September 29 – The European Parliament’s Committee on Constitutional Affairs (AFCO) is holding an exchange of views on the constitutional relationship of the United Kingdom with the European Union.

European Commission October 1 - Michel Barnier, European Commission's chief negotiator for Brexit takes up his position

House of Parliament Parliament will return on October 10 following the party conference recess.

September 30 - Foreign Affairs Committee Brexit inquiry – written submissions received by this date will inform the Committee’s work in October.

September 30 - European Scrutiny Committee Post-Referendum Consultation - written evidence deadline

Stakeholders September 25 – Labour Party conference starts in Liverpool. Concludes Wednesday 28 September.

September 26 – Friedrich-Ebert-Stiftung is organising the event EU Enlargement after BREXIT – Challenges and Chances for the Western Balkans in Brussels.

September 28 – PubAffairs Bruxelles is organising the debate A lose-lose game? The ‘Brexit effect’ in the UK and the EU in Brussels.

September 29 – Konrad-Adenauer-Stiftung and the Global Policy Institute are organising the event German and British Perspectives on Brexit in London.

October 2 – Conservative Party Conference starts in Birmingham. Concludes Wednesday 5 October.

October 4 – Priorities for UK National Security – RUSI event

October 7 – Deadline for applications – Brexit academic conference in Parliament. Apply for a place here.

October 8 – Brexit Britain: What went wrong and what next – LSE event

October 27 – The Federal Trust is organising the event Britain and the EU - Difficult Questions after the EU Referendum in London.

Members Area by using: