According to EU procedures, the “EU-UK Trade and Cooperation Agreement” will then be reviewed by the European Council and the European Parliament. However, since the EU and Britain reached an agreement at the last minute, it is almost impossible for the European Council and the European Parliament to reach an agreement next year. The review was completed before January 1, and the European Commission stated in the announcement that “based on special circumstances”, it recommended that this agreement be implemented temporarily from January 1 to February 28 next year to ensure that the UK will not face a no-deal Brexit dilemma.
The conclusion of this agreement is expected by the market. In fact, for the United Kingdom and the European Union, which are deeply mired in the “new crown crisis”, having an agreement to leave the European Union has become the best option, and it can even be said to be the “only” option, because both sides are fragile. The economy of China has been unable to bear the “worse worse”. The latest World Economic Outlook report released by the Organization for Economic Cooperation and Development (OECD) in December shows that in 2020, the UK’s gross domestic product (GDP) will decline by 11.2%, and it is expected to become one of the countries with the largest decline in global GDP this year. According to the report, by the end of 2021, the size of the British economy will shrink by more than 6% compared to before the new crown pneumonia epidemic.
The EU faces the same dilemma. The measures taken to contain the epidemic have led to a severe economic downturn in the Eurozone in November, and the possibility of GDP contraction in the fourth quarter has increased. The International Monetary Fund (IMF) warned that unless there is a “significant change in the trend of the new crown epidemic” in Europe in the coming months, economic growth in the euro zone will be weaker than previously expected. In the World Economic Outlook released by the IMF in October, the Eurozone GDP would shrink by 8.3% in 2020.
Right now, Brexit has been settled, and how to restore the economy in the “post-epidemic period” has become a new challenge for both sides. As European Commission President Von der Lein said at a press conference: “Brexit has become history, and we need to look forward.”