Theresa May has hinted that she is willing to extend the Brexit transition period.
The prime minister suggested a longer transition period to EU leaders on Wednesday, in order to break the deadlock in negotiations.
European Parliament President Antonio Tajani said: “It was mentioned – both sides mentioned the idea of an extension of a transition period as one possibility that is on the table and would be looked into.”
“Theresa May during her speech said it’s possible to achieve an agreement also on a transition period, but not with a clear position on the timing,” he added.
Extending the transition period will mean that the UK is likely to add additional budget contributions to the EU on top of the current £39 billion divorce bill.
Eurosceptic Conservative backbenchers have rejected the idea of extending the transition period because it will mean that the UK will still have to abide to EU rules and pay into the budget whilst having no say over how the money is spent.
The Shadow Chancellor, John McDonnell, said that an extended transition period would increase uncertainty for business.
“Everyone I talk to now – business leaders, investors, trade union leaders all of them are saying the uncertainty and the insecurity at the moment means decisions are not being taken about long-term investment,” he said.
Nigel Farage said that the extension period “may mean we never leave at all”.
“The problem isn’t Brexit, the problem is the prime minister,” he said.
In further news, a source has said that there will be no special Brexit summit in November due to sufficient progress already being made.
“The EU27 leaders stand ready to convene a European council, if and when the union negotiator reports that decisive progress has been made. For now, EU27 is not planning to organise an extraordinary summit on Brexit in November,” said the source.
