Ursula von der Leyen says it will not be possible to agree every aspect of the future relationship before the current deadline.
She told an audience at the London School of Economics:"Without an extension of the transition period beyond 2020, you cannot expect to agree on every single aspect of our new partnership.The warning raises the prospect of the EU only countenancing a skeleton free trade deal before the end of 2020 in order to avoid a no-deal Brexit.
But she warned London that there will be"consequences" if it decides not to align with EU rules post-Brexit.
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