It is clear that the European Union was hoping that the Covid19 pandemic would delay or even halt Brexit talks altogether during the negotiations for a trade deal. However, thankfully Boris Johnson's ministers have been adamant that no extension past 31st December will be allowed and this has anyway been laid down in law.
Although we technically left the EU on 31st January 2020, when Article 50 finally expired, we agreed a transition period till the end of this year, where we remain totally locked into the EU regulatory system throughout 2020, while negotiating a trade deal.
Either a trade deal has been hashed out and agreed by the end of the year, or we will go straight to World Trade Organisation rules on 1st January 2021.
Either a trade deal has been hashed out and agreed by the end of the year, or we will go straight to World Trade Organisation rules on 1st January 2021.
David Frost, the Government's chief negotiator put out two Tweets yesterday stating: 'Transition ends on 31st December this year. We will not ask to extend it. If the EU asks we will say no. Extending would simply prolong negotiations, create even more uncertainty, leave us liable to pay more to the EU in future and keep us bound by evolving EU laws at a time when we need to control our own affairs. In short, it is not in the UK's interest to extend.'
The latest video conference for negotiations was on 15th April and further such conferences have been arranged for the weeks of 20th April, 11th May and 1st June, this last one with a view to agreeing the implementation of the Protocol for Northern Ireland, as set out in the Withdrawal Agreement.
The decision for any extension to this transition period has to ultimately be made by 30th June of this year. After that date, hopefully we will no longer continually hear calls for it but of course this cannot be ruled out!
The EU will be desperate to get as many concessions from Britain as possible but we must be careful, as for example we agreed to safeguard the rights of EU citizens before they had given similar rights to UK citizens living in Europe.
The chief of the IMF, Kristalina Georgieva, who worked at the EU Commission under Jean-Claude Juncker, has also called for an extension but David Frost says we need to leave fully in order to be able to act in Britain's best interests for the Corona Virus, without being hampered by EU rules.
Extending the transition would be a very high risk strategy, as we would be liable for huge amounts of money if we were still locked into EU laws. The Withdrawal Agreement binds us to EU State-aid rules, which Brussels can use to intervene in any UK policy it doesn't like.
However, the EU have graciously allowed the UK government to breach EU State-aid rules for 9 months to support British business impacted by Corona Virus but this is with our own money and not a penny of EU money is involved.
Currently the European Union had not been very supportive of its own member states, which are suffering severe financial hardship caused by Covid19. Although they are talking of a €500 billion rescue package, to help member states, the European Central Bank says it may need up to €1.5 trillion. The pandemic may ultimately bring down the entire European Union Project, as countries like Greece and Italy are floundering.
Here in Britain the situation is still by no means ideal regarding restrictions to halt the spread of the virus. Yesterday we heard Matt Hancock tell Piers Morgan that currently 15,000 people are still flying in to our country every day, which is 105,000 per week!
EU top brass are panicking and are desperate for an extension, which will give them more of our money. Remainers too, are calling for an extension past 31st December and hoping we will never fully leave. It is very heartening to read that the British Government does not plan to back down on this.
Only after 31st December 2020 can we finally be completely free to make our own laws and negotiate our own trade deals with the rest of the world!
