EU Wants Brexit Transition Period To Last Until The End Of 2020

Dec 25, 2017, 07:44
EU Wants Brexit Transition Period To Last Until The End Of 2020

The EU's chief negotiator said the United Kingdom will still be bound by all of the EU's rules during that time.

"As we have said throughout, we are confident of negotiating a good deal for financial services and, as we have always been clear, that will be in the EU's interest as well as ours".

The prime minister's official spokesman dismissed Mr Barnier's comments as an opening bid in the negotiations and expressed confidence that Britain would secure a good deal for its financial services sector.

It comes after Mr Barnier told several newspapers that he was not open to an agreement which would allow financial services firms to trade freely if the United Kingdom left the single market. "It doesn't exist", Barnier told the Guardian.

Barnier added that the outcome was a effect of "the red lines that the British have chosen themselves".

The U.K.'s Brexit Secretary David Davis has said that he is seeking a "Canada plus plus plus" trade deal including services which make up the bulk of the U.K. economy.

Michel Barnier struck a blow to Theresa May's hopes of a bespoke deal with Brussels, when he said there was "no place" for financial services in any post-Brexit trade deal. "In leaving the single market, they lose the financial services passport". But in the interview, he acknowledged it would be possible to hammer out a deal in a subsequent two-year transition period.

"The prime minister said it was clear what the cabinet's objective is: a deal which secures the best possible trading terms with the European Union, enables the United Kingdom to set rules that are right for our situation and facilitates ambitious third-country trade deals", her official spokesman said.

The transition period is supposed to provide more time for United Kingdom businesses to adapt to Brexit. He said Ireland wanted the "closest relationship possible" with the United Kingdom after Brexit but would not elaborate on what they entailed.

Terms of the transition period, which the United Kingdom calls an implementation phase, have yet to be negotiated between the two sides.

De Rynck said that the discussion about bespoke trade deal isn't "particularly fruitful".