Brexit could wreck Germany's economy
The German government is worried that Brexit will wreck the country's economy, a new report has revealed. Express reports in its article Merkel's NIGHTMARE: Brexit could WRECK Germany's economy, Berlin officials warn that Berlin's Finance Ministry fears the UK leaving the EU without a trade deal could plunge the Eurozone's biggest economy into 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. "In addition, the so-called diesel crisis should be classified as a new risk to the German economy even though its effects are not possible to quantify at the moment." 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 Government set out plans to ensure goods and services sold across UK and EU can continue to be traded after Brexit. The Brexit Department said the UK wanted to smooth the way to "the freest and most frictionless trade possible" with the bloc.
The European Commission said the UK had taken "a positive step towards now really starting the process of negotiations". 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."
The CBI's director of campaigns John Foster urged the UK and EU to strike interim arrangements "to stem the loss of investment". He said: "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."