The EU have made it quite clear that it was the UK government which asked for a 24 month transition period (Mrs May used to refer to it as an implementation period but I note it's now usually a transition period) and not them. To fall in line with the end of the current Multi Annual Financial Framework (MAFF) they granted us a 21 month transition to the end of December 2020. The schedule of dates when we lose access to EU VAT and customs databases is predicated on that end of 2020 date.
Now apparently there are rumours that the PM is about to ask for another two years! Liam Fox appeared on the Sophie Ridge programme on Sky yesterday morning (HERE) and notably he didn't deny it, so I assume it's true.
He is quoted as saying:
"I wouldn't have a major problem with that, as long as it was very time limited and there was a unilateral mechanism for Britain to pull out of it if we thought that we were being kept in the European Union against our will."
I don't know if this bravado or what. How can you ask for an extended transition period because you might not be ready and then talk about being kept in against your will?
The EU are not going to grant an extension where we have a clause giving us the right to pull out unilaterally. This is as undesirable as it's impossible for the EU to grant.
There probably will be an extension to the transition period - and probably one after that too - but it will be under EU terms with no rebate on our contributions.
