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Significance

The implicit assumption, that it will be relatively straightforward to negotiate a transition period to bridge the gap between the United Kingdom’s withdrawal from the EU and the entry into force of a new, permanent arrangement, may be proved wrong over the coming months.

Impacts

UK cabinet divisions between those wishing to diverge from EU rules and those wishing to stick to them will come to the fore.

As time runs out, London will probably become more willing to make concessions, allowing the EU to harden its stand.

Delays in negotiating transition could lead to companies triggering contingency plans for a ‘no deal’ outcome.

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