European Commission Brexit negotiator Michel Barnier said Tuesday that a deal on Britain's exit from the EU is needed by October 2018.

"Time will be short. It is clear that the period of actual negotiations will be shorter than two years," Barnier said in his first press conference since taking up the post.

He said that if Britain triggers the two-year divorce process as expected in March 2017 then an agreement would be needed by October of the following year in order to get through the European Parliament in time for March 2019.