Brexit update: December deadline still stands - at least for now

Brexit | | MIC Customs Solutions |

There has been no change to the New Year's Eve Brexit deadline, although some ministers might like there to be.


There is reportedly division within the British government as to whether the December 2020 Brexit deadline should still stand or be postponed in the wake of the coronavirus pandemic.

Some civil servants are said to be frustrated with prime minister Boris Johnson's continued refusal to consider an extension, while other keen 'Brexiteers' remain eager to get the UK's departure from the European Union signed, sealed and delivered on time.

British chief negotiator David Frost and his counterpart for the EU Michel Barnier began a fresh week-long round of negotiations via video link this week, with two more planned in May and June respectively.

Prior to this new schedule, the two parties had only managed to hold a single round of talks before the coronavirus pandemic forced them to a halt. Two had to be cancelled, with Mr Barnier going down with symptoms himself in March before making a full recovery.

It is understood that the EU would agree to discuss an extension to the Brexit deadline were one requested, but the official spokesperson for Mr Johnson said last week Downing Street will not be doing this and would also turn down any such request from the EU.

"Extending the transition period would prolong the negotiations and increase uncertainty, whilst also leaving us bound by EU legislation and obliged to make further payments into the EU budget," the source pointed out to the Daily Telegraph.

It was also dismissed outright that there is any split or division within the government and that Mr Johnson has "no intention" of altering the December 31st 2020 deadline.

This comes despite a cacophony of calls for an extension as coronavirus batters economies across Europe. International Monetary Fund chief Kristalina Georgieva said last week she believes an extension would "reduce uncertainty" for the global economy, while former Conservative MP David Liddington told NRC Handelsblad there "is not enough bandwidth to pay attention to Brexit in Whitehall or the European Commission" as it stands.

Meanwhile, a leaked letter from German ambassador to the EU Michael Clauss called Mr Johnson's plans to go on with the existing deadline in place as "fantasy land".

A Director Sentiment Monitor survey from the Institute of Directors in Ireland also found 74 per cent of business leaders do not feel the UK and EU can achieve a trade deal by New Year's Eve.

However, it may be that the naysayers' fears are unfounded. Following the video call with Mr Frost, Mr Barnier went on to tell reporters the bloc is hoping for tangible progress by June, so the cut-off date could certainly still be on the table.

Of course, this relies on all loose ends being tied up and agreed upon in time, with EU diplomats reportedly disappointed that the UK has still not produced a draft legal text on fisheries. The EU has already said there will be no Brexit unless an agreement can be reached concerning fishing rights covering 100 shared species.

Whichever way, any extension decision must be agreed upon by July and would need conditions on new payments from the UK into the EU budget. If Mr Johnson has his way, though, this will not be the case.