Brexit transition period could be extended until 2022, says Michel Barnier

Monday, November 19, 2018

The Brexit transition period could be extended until 2022 under proposals suggested by Michel Barnier, it has been reported.

The EU's chief Brexit negotiator is said to have proposed the extension in order to give more time for Britain to strike a full trade deal with the EU.

The move would also give diplomats more time to find a means of avoiding a hard border in Northern Ireland and avoid the use of the backstop.

According to the Financial Times, Mr Barnier told EU ambassadors in a diplomatic note that the transition period could be extended until as late as December 2022.

During the extended period, the UK could have to continue to allow the free movement of people from the EU and keep making large payments to Brussels.



Under the draft withdrawal agreement published last week, the transition period would begin when the UK leaves the EU on March 29 and run until December 31, 2020.

During the transition, EU law will continue to apply in the UK, and Britain will continue to participate in the customs union and the single market.

There is a one-off option for the UK to seek an extension of the transition if negotiations on the future relationship are still continuing.

The Prime Minister previously said she did not expect any extension of the transition period to be needed, because she hoped to conclude a deal on the UK's future trade and security relationship with the EU by its scheduled end-date of December 2020.


Announcement 'may not be particularly helpful' at this point in time

CBI president John Allan said that, while Mr Barnier's intentions in proposing an extension may have been constructive, such an announcement "may not be particularly helpful" at this point in time.

He told BBC Radio 4's Today programme: "I think he's trying to be helpful and trying to reduce the risk that the backstop will be needed. Him saying it just at this moment may not be particularly helpful, but I think his intentions are probably good.



"We all hope it won't be necessary, that the discussions on our future economic relationship with the EU will be concluded by the end of 2020 and within the existing transition period.

"But remember, that transition period only comes into effect if Parliament approves the withdrawal agreement. Otherwise we've got the cliff-edge in March next year."