Michel Barnier ‘open to extending Brexit transition period by a year’

'The extension is an example of how we could be flexible to help the British side if they want it', says EU diplomat

Michel Barnier has reportedly said he is open to extending the Brexit transition period by a year.

The European Union's Brexit negotiator could offer the extension in return for Theresa May accepting a “two-tier” backstop to avoid a border with Northern Ireland, EU diplomats told the Financial Times.

The plan was informally proposed to the UK during talks last week, the newspaper said.

It would allow Britain to remain in the customs union and single market beyond the scheduled end of the 21-month transition period in December 2020. Freedom of movement would also be extended until the end of 2021.

Mr Barnier is said to have outlined the proposal during a meeting of ministers from EU member states in Luxembourg on the eve of Wednesday’s Brexit summit.

“The extension is an example of how we could be flexible to help the British side if they want it,” one diplomat told the Financial Times.

German newspaper the Frankfurter Allgemeine Zeitung also reported the European Commission had “raised the possibility of extending the transitional period” as “a goodwill gesture to Britain”.

Britain is said to have objected to significant elements of the Northern Ireland proposal, effectively postponing talks on the plan until after this week’s negotiations.

However, UK diplomats are reported to be open to the idea of an extension, although no agreement has been made and it would be politically sensitive.

Downing Street has declined to rule out prolonging the transition period as part of negotiations.

Such a move would go down badly with Eurosceptic Conservative MPs, who already resent that Britain will be bound by EU rules for nearly two years after leaving the union.

Donald Tusk has warned Britain needed to put forward “concrete proposals” to avoid crashing out of the EU with no deal.

The European Council president said there were “no grounds for optimism” after it emerged that leaders would not even consider plans for a trade deal with the UK because of the impasse.