The UK cannot enjoy both "full sovereignty" and "full access" to the EU's internal market, says Germany's ambassador to the EU. London and Brussels hope to reach a new Brexit deal before the end of 2020.
With time running out for the UK and the EU to settle their post-Brexit ties, Germany's EU envoy Michael Clauss on Thursday warned that "no real progress" was being made.
The UK officially left the bloc on January 31, but maintains its travel and trade connections with the EU under a transitional deal set to expire by the end of the year.
UK officials have an option to demand an extension of the transitional period, but would need to submit the request before the end of June. However, London has repeatedly rejected this possibility.
Last week, the UK's chief Brexit negotiator, David Frost, said that "we are not going to ask for an extension and if the EU asks for one, we will not a agree to that." Brexit supporters in the UK have grown frustrated with delays that have been plaguing the divorce proceedings since the Brexit referendum in June 2016.
On Thursday, Ambassador Clauss confirmed that the EU was working on an assumption that London would not ask for more time. Under these circumstances, a deal would need to be reached by October this year in order to be ratified and ready to go into force on January 1. Otherwise, the UK could face a so-called cliff-edge scenario which would effectively cut trade with the bloc.
EU Commission head Ursula von der Leyen, EU Council chief Charles Michel and UK Prime Minister Boris Johnson are set to meet later in June in an attempt to break the deadlock.