Former Brexit Party MEP Alex Phillips told talkRADIO that the UK risks shouldering the burden of a huge EU bailout if Boris Johnsons is forced into extending the Brexit transition. She said that the UK would be forced to pay billions to help fund the EU’s immense bailout, after the European Commission unveiled a recovery fund worth €750bn (£670bn) this week. This comes as the European Union would consider extending the Brexit transition period with the UK according to a senior advisor to Michel Barnier.

Economies across the 27-nation EU bloc have been ravaged by the COVID-19 pandemic, with the eurozone facing a total collapse.

The European Central Bank has warned that the EU’s single currency bloc can now expect an even worse downturn than previously forecast.

The ECB’s president Christine Lagarde said the euro economy will shrink by eight to twelve percent because of a “sudden stop of activity” caused by the pandemic.

The recession will be twice as deep as the 2008 financial crisis, as Ms Lagarade said the bloc faced a “massive economic crisis and one that was literally unheard of in peace time for the damage it is causing”.

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TalkRADIO host Mark Dolan told Ms Phillips: “I wonder if we have the EU over over a barrel given the fact that most of the economies on the continent are absolutely devastated and on their knees.

“They weren’t in the best shape pre-pandemic, particularly Italy.

“So won’t the EU nations be so desperate to trade with us that this will oil the wheels of a Brexit deal at the last-minute?”

The former MEP responded: “It depends. If they force us to extend the transition period, we end up entering the next multi-annual financial framework, which means we essentially still contribute to the EU budget.

“And don’t they need those contributions? And it keeps us in a close orbit so we would be liable to contribute to any huge bailout.”

Mr Barnier’s adviser Stefaan de Rynck said this week that there are still “huge challenges” to overcome before the end of the transition period.

Mr de Rynck also agree with the UK’s chief negotiator David Frost in saying there was little chance of a deal on fishing being agreed by the 30 June deadline.

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It is understood that a high-level political summit between Boris Johnson and the European Commission President Ursula von der Leyen next month will be crucial for any decisive compromise.

The meeting in the middle of June is now almost certain to take place after talks on a trade deal flounder.

Earlier this month, Mr Frost accused Brussels of treating the UK as an “unworthy” partner by offering a low-quality trade agreement that he says would force the country to “bend to EU norms”.

Britain’s chief negotiator repeated this week that the Government would not ask for an extension and pledged that any request by the EU for one would be rejected.