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EU Trade Commissioner Expects UK to Seek More Extensions

UK to leave The EU trade commissioner Phil Hogan said that he expects Britain's prime minister Boris Johnson to abandon his promise to not seek for more extensions for the transition period, making a reference to his lack of consistency.

“In the past, we saw the way the Prime Minister promised to die in the ditch rather than extend the deadline for Brexit, only for him to do just that,” he explained during an interview with The Irish Times, “I don’t believe Prime Minister Johnson will die in the ditch over the timeline for the future relationship either,” he added.

At the end of October, the EU agreed to grant an extension until January 31, since at the moment the British parliament wasn't able to agree on a Brexit deal. However, the British Prime Minister has insisted lately on not asking for more extensions, intending to legally prohibit the British government agreeing to any extension, a move that Hogan called "very odd" and a "stunt".

"From our point of view it is important that we move from stunt to substance," he said, "It would be helpful if the focus was on content rather than timetables,” he added.

The UK is set to leave the European Union on January 31, and after that, it will remain on the customs union for 11 months in which they will have to reach a trade deal with Brussels, a timeframe that the European Commission president Ursula von der Leyen considers concerning, as the time may not be enough to hold all the negotiations that are needed.

“It’s not only about negotiating a free trade deal but many other subjects,” she told a French newspaper last week, "It seems to me that on both sides we must ask ourselves seriously if all these negotiations are feasible in such a short time,” she added.

When making a reference to the British Conservative party's recent overwhelming victory against the Labor party, Hogan said that the Prime Minister needs to show leadership and use this majority for the good of the UK.

“Prime Minister Johnson had delivered a very impressive majority ," he said, "Now he needs to show leadership and use that majority for the good of the nation,” he added.

Hogan also elaborated that part of the assumption among British politicians in the last 4 years is that the UK was going to be able to leave the EU while retaining all the benefits of a European Union membership and now that the deadlock in the British parliament has been broken they should behave based on more realistic assumptions.

“Any ‘having our cake and eat it’ rhetoric will not fly. Both sides need to proceed calmly and coherently,” added Hogan.

About the process of reaching a deal itself, Hogan said that the advantage this time is that they are not beginning from scratch but despite this, the facts on Brexit will not change.

"We all have to come to terms with the reality that Brexit means there will be two markets, not a single market,” he said, adding that trade barriers between the UK and the EU may be erected.

By 10:19 GMT the Euro went against the US dollar by 0.21 percent, hitting the 1.1199 level.

Ibeth Rivero
About Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

 

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