(Post) Brexit Battles on the Horizon Between the EU and the UK

As revelers count down the hours until the New Year, officials in London and Brussels are focused on a different date – January 31. That is when the U.K. is scheduled to leave the European Union, which would mark the first time that a country has left the world’s largest trading bloc. The U.K. voted in a referendum in June 2016 to depart the EU, but the negotiations between the U.K and the EU have been protracted and difficult. The U.K. itself has been torn between the Leave and Remain lines during this time. Finally, Brexit seems a reality now that Prime Minister Johnson has secured a comfortable majority in parliament after the election earlier this month.

The British pound soared on post-election euphoria, climbing to a two and a half year high. However, the elation proved to be short-lived, as the pound has surrendered most of those gains. Brexit may be a done deal, but the ‘day after’ could prove to be as vexing as the Brexit talks were. The two sides will enter a transition period, in which the U.K. and the EU must reach a trade deal by the end of 2020. Is this enough time?

Ursula von der Leyen, the new European Commission president, does not think so. In an interview with the French business newspaper Les Echos, von der Leyen said she was “very concerned about how little time we have”. She urged both sides to “seriously consider whether the negotiations are feasible in such a short time.” Von der Leyen said that “it would be reasonable to take stock in the middle of the year and if necessary, agree on an extension to the transition period”.

This position is in sharp contrast to that of Prime Minister Johnson, who has insisted that there will be no delays and has said that the two sides can and will reach a trade deal by the end of 2020. It appears that the bad blood between London and Brussels will continue even if Brexit goes through at the end of January, and the transition period is likely to be anything but smooth sailing for the UK and the European Union.