Brexit transition period could be extended by another two years

The Brexit process could be extended by another two years.

In proposals suggested by the European Union’s chief negotiator, the transition period of the UK leaving the European Union could be prolonged in order to give more time for Britain to strike a full trade deal with Brussels.

The move, which comes after a turbulent week for Theresa May, would also give diplomats more time to avoid a hard border in Northern Ireland.

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.

This means that EU law will continue to apply in the UK and Britain will continue to participate in the customs union and the single market during that time period.

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.

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

The UK could have to continue to allow the free movement of people from the EU and keep making large payments to Brussels during the extension period.

Last month, Theresa May announced she was ready to consider a delay of “a matter of months” in Britain’s final departure from the EU in order to avoid a hard border in Ireland.

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.

In his reported communique, Mr Barnier is said to have noted that the political situation in Westminster is “volatile”.

Any extension to the transition period would need to be mutually agreed between the UK and the EU.

In Westminster, Brexiteers could view extending the period as a concession to Brussels.

It’s also likely the Prime Minister could face criticism of failing to overcome the final barriers to sealing a full trade deal with the EU.