Brussels slams UK for 'wasting valuable time' but British side accuses EU of being 'unnecessarily difficult'.
The economy grew by 1.5% in May but it is still down by nearly a quarter compared to February.
The Scottish Government says the decision is taken with a 'heavy heart' and is necessary because of Brexit.
Committee believes UK Environent Bill as it stands would only allow Scottish ministers limited say.
Constitutional relations secretary Michael Russell warned of a 'catastrophic' recession due to Covid-19.
Brussels' chief negotiator Michel Barnier said an extension is available if the UK wants it.
The economy cannot afford the 'double hit' of Covid-19's impact and a no-deal Brexit, Michael Russell warned.
Shadow Scottish secretary Ian Murray said 'this is not a time for constitutional politics'.
The UK Government should seek to extend the transition period to focus on tackling Covid-19, the SNP said.