Brexit: Brussels set to push for six-month extension to UK's transition period out of EU

The EU is to push for an optional six-month extension to the Brexit transition period to be built in to the UK’s withdrawal agreement, The Independent understands.

European Commission officials will seek the extension to give the EU added flexibility, but it comes as key figures in the UK also look to extend the transition to give time to implement new customs arrangements.

Next week a crunch meeting will see Theresa May’s top ministers try to agree what kind of customs relations to seek in negotiations, with both of her proposed options potentially needing more time than the current transition allows.

The Independent has been told by two sources in Brussels that the EU wants the six-month extension to protect its own interests, as Brexit negotiations come to their most critical phase.

One said: “Of course they are aware of the sensitivity around the issue in London, but it is about giving the commission more leeway if needed, at the end of the transition to get things in place.”

A second official in Brussels said it would be normal for the commission to seek the added time, simply as a safety precaution given the uncertainty surrounding the British position.

The commission is expected to try to put the optional six-month extension into the withdrawal agreement late on in the negotiations process, in order to maximise the chance of it being accepted.

According to the current withdrawal agreement text, the transition period is set to last around 21 months from the end of March 2019 until December 2020 – to give time for both sides to get their houses in order before new legal and trade systems come into play.

But it has become clear in recent weeks that the UK’s two proposed options – a “customs partnership”, which favours closer customs ties with the EU to avoid a hard border in Ireland, or a “maximum facilitation” approach, with looser customs ties, but a harder border – would both need more time to implement than 21 months.

The Independent first reported in February how the UK had discussed the idea of a longer transition, and though the story was denied at the time, officials and politicians have since made comments that leave open the door to a longer period.

Earlier this month business secretary Greg Clark, who backs the “customs partnership” approach, suggested new arrangements could be brought in over a longer period to ensure a smooth Brexit.

Meanwhile, Brexiteers including Ms May’s ex-chief of staff Nick Timothy and allies of environment secretary Michael Gove have asked to extend the transition to buy time to set up their preferred option.

Ms May’s cabinet is also deeply divided on Brexit, with the issue of what kind of customs relations to adopt set to be discussed again at a meeting of senior ministers on Tuesday.

Foreign secretary Boris Johnson has denied being disloyal, despite calling the option of a “customs partnership”, said to be preferred by Ms May, a “crazy” idea. Mr Clark has said thousands of jobs could be put at risk if the UK does not implement it.