Germany advises EU to prepare for potential no-deal Brexit

Jill Petzinger
Jill Petzinger, Germany Correspondent, Yahoo Finance UK
German chancellor Angela Merkel (R) and British prime minister Boris Johnson. Johnson said he hoped to finalise a deal with the EU by the end of the summer. (Adam Berry/Getty Images)

The German government is urging other EU member states to get ready for a potential no-deal Brexit, according to a government document seen by Reuters.

The document, dated 15 June, says that member states should begin putting contingency plans in place for what it described as “no deal 2.0” and that EU states should not accede “at any price” to the UK’s plans for a rapid trade and security deal this summer.

“From September, the negotiations enter a hot phase,” the document reads. “Britain is already escalating threats in Brussels, wants to settle as much as possible in the shortest possible time and hopes to achieve last-minute success in the negotiations.

“It is therefore important to preserve the unity of the 27, to continue to insist on parallel progress in all areas (overall package) and to make it clear that there will be no agreement at any price.

“The situation is less serious than in 2019, as important regulations — for example, for citizens — were sorted out in the withdrawal agreement,” the German document reads.

The German government document revealed that the Foreign Office believed the transition period would not be extended beyond the end of this year.

British prime minister Boris Johnson said this week that he hoped to finalise a deal with the EU by the end of the summer. Johnson and EU institution heads agreed after a video conference on Monday that they would intensify talks in July.

READ MORE: Boris Johnson hopes for post-Brexit trade deal with the EU by autumn

A joint statement issued after the video call said that the UK’s Brexit transition period will end on 31 December, at the request of the UK government. It said both sides hoped intensified talks in July would create “conducive conditions” for a deal by the end of 2020.