During their meeting on 14-15 December, EU leaders discussed euro area reform, agreeing to concentrate over the next six months on areas where the convergence of views is greatest. The aim is to progress step-by-step on issues such as the completion of the Banking Union and the transformation of the ESM into the so-called European Monetary Fund. These should significantly strengthen the resilience of the European Monetary Union (EMU). In a joint press conference, French President Emmanuel Macron and German Chancellor Angela Merkel said they aim to reach a common position on euro area reform by March 2018. Leaders also adopted guidelines for the second phase of the Brexit negotiations which will entail negotiating and drafting a Withdrawal Agreement to govern the transition. During the transition, the United Kingdom, as a third country, will no longer participate in or nominate or elect members of the EU institutions, nor participate in the decision-making of the Union. All existing EU regulatory, budgetary, supervisory, judiciary and enforcement instruments and structures will apply, including the competence of the Court of Justice of the European Union, as well as the UK  obligations as a member of the Customs Union and the Single Market.