Published On: Fri, Sep 6th, 2019

Brexit news: No deal is better for Germany, leading economist tells Merkel | UK | News


The think-tank chief warned that allowing the UK to further delay its European Union departure will plunge the bloc into further business uncertainty. He proclaimed that a no-deal Brexit would be better in the long run than prolonging the deadlock for years to come. But the economist didn’t admit that allowing Britain to leave the EU without an agreement wouldn’t have its immediate negative consequences.

Mr Fratzcher said: “The risk I see now is uncertainty.

“It’s best to get unpleasant things over and done with – better a hard Brexit now than a deadlock that will last another year or two.”

MPs this week seized control of the Brexit process by voting for legislation outlawing Boris Johnson from leaving the EU without a deal on October 31.

The cross-party move forces the Prime Minister to ask for a new delay at a European Council summit on October 17 by extending the two-year Article 50 exit clause until February next year.

Warning against further delay, Mr Fratzcher said that German exports to the UK and Ireland have already been dramatically weakened due to the ongoing uncertainty surrounding the Brexit process.

“One there is clarity and companies know what to prepare for, you can handle it,” he said.

The DIW President’s outlook comes as swathes experts and economists claim that a no-deal Brexit will have a detrimental impact on the EU and UK.

He said: “If you look at consumers now, I have trouble seeing who will be particularly affected, and what we import from the UK is limited to consumer goods.”

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“We have left the argument that we have to make an example of Great Britain and to not make it attractive, behind us a long time ago.

“I believe no other country wants to have such a mess as in Britain has seen in the last three years.”

“I do not think Britain would have a better bargaining position after a hard Brexit,” he added.

“On the contrary, the pressure on Britain to negotiate a free-trade agreement with the EU as soon as possible would be greater, rather than smaller.”

France has also cast doubt on the prospect of Britain being granted a third Brexit delay in the coming weeks.

President Emmanuel Macron could veto a request because a new extension “would not solve the problem”.

Amelie De Montchalin, the French European affairs minister, said it could be rejected if it continues the parliamentary deadlock and chaos in London.

She said: “It’s not because a problem is complicated that by diluting it over time and delaying it for three months without changing anything, it will be resolved.

“When I heard the British saying, ‘Give us three months more and we will solve the problem’, we can see that another six months would not solve the problem, nor another three months.

“They have to tell us what they want.”



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