No new deadline has been announced, but von der Leyen said it was “responsible” to come forward “for the extra thing,” adding that she made a “constructive and helpful” phone call to Johnson.
The European Union and the United Kingdom had been trying for months to agree on a trade deal before the “transition period” for Brexit expired on December 31. Earlier this week, a joint statement by Johnson and von der Leyen pointed to three “critical” sticking points: fishing rights, the UK’s ability to disagree over EU standards, and legal oversight of any deal.
Failure to reach a trade deal would be economically painful for both the EU and the UK, although the impact on the UK would be disproportionately greater, given that the EU is by far its biggest trading partner. Losing access to its single market will cut off the UK’s business from 450 million consumers in Europe, burdening them with additional customs duties and protein.
The UK Office of Budget Responsibility (OBR) estimates that a no-deal Brexit will wipe out 40 billion pounds ($ 53 billion), or 2% of the UK’s economic output in 2021, leaving more than 300,000 people out of work. By the second half. Next year.
However, OBR said in November that even if London and Brussels could reach an agreement, their new trade relationship was expected to result in a long-term loss of production of around 4% compared to Britain’s remaining in the European Union.
Ireland, which has the potential to lose the most from the European Union, said it was “absolutely essential” for the UK and the European Union to reach a post-Brexit deal. Irish Prime Minister Michel Martin told the BBC on Sunday that the scenario of failure to reach an agreement would be “very harmful to workers” in the UK, Ireland and across Europe, and represented “a horrific failure of governance.”
Johnson said on Thursday he had instructed his cabinet to prepare for the failure of talks, and the European Union had issued plans aimed at keeping its borders open to commercial planes, trains and trucks.
The British Ministry of Defense said on Saturday that the UK will have a “string of enforcement measures” available at the end of the Brexit transition period, including “many” maritime patrol vessels available in its territorial waters.