A one-time extension of the transition period is possible. Such an extension may not exceed two years. It is expected to be the subject of a joint commission decision between the UK and the EU by 1 July 2020. The UK and the EU should agree on both the length of an extension and other conditions, such as the UK`s financial contribution to the EU budget for the extended period. The EU-27 (with the exception of the UK) notes that sufficient progress has been made in Phase 1. This means that phase 2 of the negotiations can begin. In Phase 2, the EU and the UK continue to negotiate the withdrawal agreement. But they are also beginning to discuss a transition period and explore their future relationship. “I have taken note of the UK`s position on this issue and, as President Ursula von der Leyen did earlier, I said that the EU remains open to such an extension,” he said. But he added: “We accept this decision as a final decision.” This is the third time the British Parliament has rejected the agreement. The UK has until 12 April 2019 to decide how to proceed: EU Section 15A (Withdrawal) Act 2018 prohibits British ministers from approving the extension of the transition period within the JC. This provision was added to this law by Article 33 of the EU (Withdrawal Agreement) Act 2020. Section 39 of the 2020 Act does not allow the government to change on the day of intellectual completion, as the transition is extended.
Therefore, Parliament would have to pass new legislation to facilitate these amendments if an extension was agreed. The transitional period under the withdrawal agreement expires on 31 December 2020. It is no longer possible to extend this period. This would have required a joint decision on an extension until 1 July 2020. The United Kingdom has missed this deadline. After the adoption by the British House of Lords on 22 January of the European Union Withdrawal Agreement Act, the bill received royal approval from the Queen. The European Parliament approved the agreement on 29 January. But a amended withdrawal law agreement to be voted on this week would rule out any extension.
Coronavirus has had an impact on negotiations between the UK government and the EU. This has led some to consider the possibility of extending the Brexit transition period. The government has repeatedly said that it is not asking for an extension.