Brexit negotiations took a turn for the worse on Friday as European Union chief negotiator Michel Barnier warned that the transition period "is not a given" if disagreements with the United Kingdom persist.
He also cited the UK's concern about not having a say on legislation passed during transition which it would be obliged to implement, and its wish to have the choice to participate in projects initiated in the same period, on which it has now "opt-in" rights.
It envisages that London will remain bound by all European Union laws and pay into the bloc's budget, but have no say in decisions. "Time is short, very short".
The pound fell 0.6 percent to $1.3830 as of 11:57 a.m.in London. The EU negotiator Michel Barnier stated the following to NPR, "The U.K. must know these rules of the game and accept them in the first place".
There are only 13 months to go before Brexit, yet Prime Minister Theresa May and her senior ministers remain divided over how close a relationship the country should seek to retain with the EU.
Meanwhile, Premier May chaired meetings of her Brexit sub-committee this week amid much disagreement between different factions of her Cabinet.
Britain was expected to sketch in some of the details Friday, but Barnier says the British side canceled the meeting due to a scheduling conflict. May's office did not respond to requests for comment.
Businesses will be able to wait only so long.
The minority Conservative government appears deeply split on Brexit: while some lawmakers in Prime Minister Theresa May's party want close ties with the remaining 27 European Union nations and a period of transition, others want a more fundamental break that would see Britain diverge more profoundly on regulatory and trade matters.
"So it is as simple as that", Koji Tsuruoka told reporters. "This is all high stakes that all of us, I think, need to keep in mind", he answered.
If the answer to that question is no, then the ECJ judges are asked to determine what, if any, conditions or limitations should apply to the maintenance of those rights once Britain leaves the EU.
Speaking about the UK's decision to leave the EU single market and customs union, he explained the move will mean there will be border checks in Ireland.
Among the mass of agreements that Britain will now have to renegotiate with Brussels are those governing flights between Britain and the rest of the EU.
Inside the EU, both Ireland and Northern Ireland (as part of the UK) are part of the single market and customs union so share the same regulations and standards.
Britain has pushed back against that position.
"The time has come to make choices".
Other airlines, like Irish low-priced rival Ryanair, have made similar moves amid concerns that Brexit could severely disrupt air traffic between Britain and continental Europe.