The EU's chief Brexit negotiator added that Britain must comply with all EU rules and regulations during the transition.
- Britain will leave the EU for good on January 1, 2021, Michel Barnier announces.
- The EU's chief Brexit negotiator said Brussels does not want a transition deal to last longer than 21 months.
- Theresa May has said Britain wants a transition deal lasting "around" two years.
- Britain will continue to comply with all EU rules and laws during the transition, Barnier said.
LONDON — Michel Barnier has said that the European Union will not let a Brexit transition deal run beyond December 31, 2020.
The EU's chief Brexit negotiator said on Wednesday morning that Brussels does not want any transition deal to stretch beyond 2020 as this would not coincide with the bloc's financial calendar.
In practice, this means that Britain would be fully out of the EU by January 2021.
Prime Minister Theresa May has said she wants a transition deal to last "around" two years, in which Britain will continue to comply with EU trade and customs rules, in order to guarantee a smooth exit from the EU.
Barnier said in a press conference that a transition deal beginning in March 2019 — when Article 50 talks will come to an end — can last no longer than 21 months.
According to a live translation by Sky News, he said: "Another important point, which is also in the European Council decisions relates to the duration of the transition period, it should be of a short and specific duration.
"At Florence, Theresa May referred to a maximum of two years. Our position, the European Commission’s position is that this would run logically to the 31st December 2020, because that's the duration of the current multi-annual financial framework."
The EU's chief Brexit negotiator reiterated in a press conference on Wednesday that Britain will be expected to continue adhering to all EU laws, rules, and regulations — including the four freedoms and jurisdiction of the ECJ.
"During the transition period, the UK will keep all benefits but also all the duties of the single market, customs union, and common policies," Barnier said.
Speaking in Brussels, Barnier set out five commitments Britain is expected to agree to as part of any transitional arrangement. The paraphrased commitments are:
- Britain must respect the integrity of the single market. Transition will cover all economic sectors of the single market and include the four freedoms.
- Britain will continue to comply fully with the customs union.
- All new rules adopted by EU during transition will apply to the UK and subject to the jurisdiction of the ECJ.
- All EU policies will continue to apply to the UK.
- EU's autonomy of decision making will still apply.
These conditions mean that Britain will effectively remain a member of the European Union in everything but name for nearly two years after March 2019.
Both EU and UK negotiators agree that this sort of transition, often referred to as "status quo" or "standstill" transition, is best for businesses across the continent as they won't be forced to adapt to any major changes.
During this period, however, the UK will lose its representation in the European Parliament and will have no say in shaping EU laws and regulations.
Professor Anand Menon, director of thinktank UK In A Changing EU, told British Parliament's Brexit committee earlier today that this sort of transition will leave Britain with "all the obligations but none of the rights" of EU membership.
Barnier dashes May's hopes of a "deep and special" free trade partnership
Barnier added that Prime Minister May's policy of taking Britain out of both the single market and customs unions means a future EU-UK trade deal cannot be as close as those the bloc has with other European countries.
The EU's Brexit negotiator said that he expects the free trade deal negotiated with Britain to be "along the same lines" of the deals reached with South Korea, Japan and Canada.
The EU's deal with Canada, known as CETA, took seven years to finalise but crucially does not cover services. The services sector accounts for around 80% of Britain's economy.
"There are of course differences between these different models, because each of these trade models is of course tailor-made and specific to these countries when we sign these agreements," Barnier said.
"But it’s the same approach and logic underpinning these agreements. That’ll be the situation with the United Kingdom in light of what they said their position is themselves."