The EU is on edge as Boris Johnson’s refusal to extend the Brexit transition period takes its toll of member-states. During a debate in the Irish Parliament, the Dáil Éireann, this week MPs warned of an economic collapse across the EU if Britain refused Brussels’ demands for an extension in light of the coronavirus pandemic. One MP, Sean Haughey, said Ireland itself risked “nothing short of Armageddon” if Britain left without a deal or even with a “bare bones” deal.

He told fellow Irish MPs: “The most we can hope for in this time frame is a bare bones agreement. There would be no winners in that case.

“We believe that an extension to the transition period is needed now, particularly in light of the COVID-19 pandemic, the subsequent delay in talks and fundamentally altered economic landscape.

“Following the conclusion of the second round of talks, Barnier questioned whether a deal could be agreed in the time frame allowed. He also noted that the UK refused to engage seriously on a number of issues.

“It is imprudent and short-sighted of the UK not to seek an extension and every effort must be made to reach a consensus between the UK and the EU.” 

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He continued: “Our economy has been hit with a hammer blow in recent weeks thanks to the pandemic, and the prospect of a hard Brexit coming down the tracks is a very frightening prospect.

“Even a basic free trade agreement would still imply significant higher trade friction than exists today. A transition to a UK-EU free trade deal would lower Irish growth by 3.5% in the long run.

“The COVID-19 pandemic would make these predictions even worse. GDP will fall by 10.5% this year and unemployment could reach 22%.

“A hard Brexit would be nothing short of Armageddon for the thousands of businesses already on life support. 

“Therefore, Ireland must continue with contingency planning and seek EU support for vulnerable sectors.”

Also speaking at the parliamentary session, the Tánaiste, or the Irish deputy leader, Simon Coveney, said that progress “has not been good” in negotiations to reach a post-Brexit trade deal.

He said the EU and UK looked like they were heading towards a crisis which, from the Irish perspective, was “very, very serious”.

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Downing Street has previously said it will refuse an extension, even if the EU requested it.

On Tuesday, Cabinet Office Minister Michael Gove told a virtual committee there had been “one or two tough moments” so far in the negotiations.

However, he insisted there was still no need for an extension to the transition period, warning such an extension would cost the UK billions. 

European Union Trade Commissioner Phil Hogan has said there is no real sign that the UK is approaching trade talks with the EU with a plan to strike a deal.

He fears that the UK will blame any post-Brexit fallout on the economic shock from COVID-19.

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