This means Britain will not be fully unshackled from the bloc until January 1, 2021 – nearly five years after the nation voted to leave in a historic referendum in 2016.
During a press conference this morning, the EU’s chief Brexit negotiator said the UK will retain the benefits and obligations of being in the EU during the transition period of four years.
Prime Minister Theresa May had formally asked for a transition to last around two years.
Mr Barnier said: “We need this transition period. It is useful, it will enable the British administrator to be prepared.
“We need to give the European Parliament and the council and the British authorities time to take a position on this agreement.
“The framework for a future relationship will be scrupulously in line with Council’s guidelines. But we know already the direction.”
Mr Barnier also warned there would be no turning back, adding: “We will not move back on or renegotiate any of the issues that were agreed upon for ‘sufficient progress’ in the European Council”.
Coinciding with the end of the EU’s current seven-year budget period, the end of 2020, 21 months after Brexit at the end of March 2019, had long been expected as the target end date of the transition but this was the first official confirmation that this is the official goal of the Union negotiators.
The four pages of new directives for Mr Barnier were in line with guidelines issued by EU leaders at a summit on Friday and will form the basis of talks on the transition which he hopes to start next month.
They spell out that Britain will be effectively still a member of EU institutions, bound by all their rules including new ones, while not having a say in their making. The EU will also offer Britain a non-voting place at some meetings where decisions may affect specific issues and will set up special arrangements for a UK role in setting annual EU fishing quotas.
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