Merkel Warned: Brexit With No Trade Deal Will ‘Crash German Economy’
Berlin’s Finance Ministry has today warned Chancellor Angela Merkel (pictured above) that if the UK leaves the European Union without a trade deal then it would seriously risk sending the Eurozone’s largest economy into ‘an immediate crisis’.
Officials also raised fears about Donald Trump‘s protectionist trade policies and the emissions scandal ensnaring German carmakers.
In a report released today, the ministry wrote:
‘Risks linked to how Brexit will shape out and future US trade policies remain.
The shock admission will come as a major boost to Brexit negotiators as they try to strike a free-trade agreement with Brussels.
Germany’s economy is heavily reliant on car exports to Britain, meaning Berlin is desperate to keep the UK in the single market and customs union.
Last year, an estimated 950,000 newly registered vehicles in the UK were made in Germany, a figure that could slump after a hard Brexit.
The Brexit Department said the UK wanted to smooth the way to “the freest and most frictionless trade possible” with the bloc.
Business leaders said the proposals were better than EU plans which would require separate regulatory processes on either side of the Channel.
But a spokesman said any early move to talks on trade would have to be agreed by the 27 remaining European Union member states. He added:
‘There is a very clear structure in place, set by the EU27, about how these talks should be sequenced and that is exactly what we think should be happening now.
‘The important thing is to realise that the clock is ticking, that we have no time to lose and that we need to get on with it.’
‘This would ensure that goods and services can still flow freely, giving companies the certainty they need to invest.
‘The simplest way to achieve that is for the UK to stay in the single market and a customs union until a comprehensive new deal is in force.’
Westmonster Dave is the News Editor of Kipper Central.