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The EU is nervous as Boris Johnson’s refusal to extend the Brexit transition period affects member states. During a debate in the Irish Parliament, the Dáil Éireann, MPs this week warned of an economic collapse in the EU if Britain rejects Brussels’ demands for an extension in light of the coronavirus pandemic. A deputy, Sean Haughey, said Ireland itself risked “nothing less than Armageddon” if Britain left without an agreement or even a “basic” agreement.
He told his Irish parliamentary colleagues: “The most we can hope for in this time frame is a basic agreement. There would be no winners in that case.”
“We believe that an extension of the transition period is now needed, particularly in light of the COVID-19 pandemic, the subsequent delay in talks and the fundamentally altered economic outlook.
“Following the conclusion of the second round of talks, Barnier questioned whether an agreement could be reached within the allowed time frame. He also noted that the UK refused to seriously engage in a number of issues.”
“It is reckless and shortsighted that the UK is not seeking an extension and every effort should be made to reach a consensus between the UK and the EU.”
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He continued: “Our economy has been hit with a hammer blow in recent weeks thanks to the pandemic, and the prospect of a difficult Brexit occurring is a very frightening prospect.”
“Even a basic free trade agreement would still imply significantly more trade friction than exists today. A transition to a free trade agreement between the UK and the EU would reduce Ireland’s growth by 3.5% to long term”.
“The COVID-19 pandemic would make these predictions even worse. GDP will drop 10.5% this year and unemployment could hit 22%.
“A tough Brexit would be nothing less than Armageddon for the thousands of companies that are already on life support.
Downing Street has previously said it will reject an extension, even if the EU requested it.
On Tuesday, Cabinet Office Minister Michael Gove told a virtual committee that there had been “one or two difficult times” so far in the negotiations.
However, he insisted there An extension of the transition period was not yet necessary, warning that such an extension would cost the United Kingdom billions.
European Union Trade Commissioner Phil Hogan said there is no real sign that the UK is approaching trade talks with the EU with a plan to reach an agreement.
He fears that the UK will blame the post-Brexit consequences of the COVID-19 economic shock.
