At the beginning of Brexit negotiations the transition period was allowed to be extended by 12 or 24 months, if both sides agreed to it. 1 of July 2020 was set as a deadline for extending the transition.
However, the British government has refused to extend the transition period beyond December 31, 2020. This promise was made to the British voters who voted for the Conservative Party and cannot be broken, the Prime Minister Mr. Johnson stated. According to the officials, the extension may lead to serious uncertainty for businesses and citizens.
That means the European Union and the UK will have to set a deal in the next six months to avoid a “No-deal” scenario. The EU and UK shared plans “to intensify the talks in July and to create the most conducive conditions for concluding and ratifying a deal before the end of 2020”.