The transition period was originally planned to end in December 2020, some 21 months after Brexit day, to give time for adjustment and for the future trade deal to be agreed and ratified.
Borrell also demanded changes to the article to clearly separate Brexit negotiations from those on Gibraltar, which are held bilaterally between Madrid and London. This has caused angst among the Spanish authorities, who are keen for an agreement on Gibraltar to be subject to a separate bilateral arrangement between the United Kingdom and Spain, rather than packaged in with the current divorce plans.
"We have to realise that this deal on the table is the best possible one, there is no better deal for this insane Brexit", Luxembourg's foreign minister Jean Asselborn said before the meeting.
However, Barnier's comments didn't seem to chime with Spanish counterparts, with Borrell stating in no uncertain terms that unless revisions are made to Article 184, Spain "would not give consent [to the agreement]".More news: Rolling Stones tour headed to Chicago’s Soldier Field
Ministers from the EU27 formally approved the draft deal during a meeting with Barnier in Brussels on Monday.
"This is what needs to made clear, and until it is clarified in the withdrawal agreement and in the political declaration on the future relationship, we can not give our backing".
He said: "We want the interpretation to be clear in that text that the negotiations between the United Kingdom and the European Union will not apply to Gibraltar".
Spain said last week that it welcomed the inclusion of a protocol on Gibraltar in the draft Brexit agreement and that it would be positive for residents there.More news: Democratic senators sue over Matthew Whitaker’s appointment as attorney general
Gibraltar Chief Minister Fabian Picardo said the position adopted by Madrid "does little to build mutual confidence and trust going forward".
The threat could derail the draft agreement reached between Brussels and London and is another headache for Theresa May as she tries to quell revolt at home.
But Spain wants to retain what it sees as its right to negotiate the future on Gibraltar with Britain on a bilateral basis, giving it an effective veto.
The divorce deal sets up a new UK-Spanish oversight committee to manage ties across the border after Brexit.More news: Lamborghini announces Urus racing series