No Deal Brexit risks losing Germany more than 100,000 jobs, report warns
The study warned that a 'disorderly Brexit' would hit the German economy the worst of all 27 EU states
A NO DEAL Brexit would put more than 100,000 jobs at stake in Germany, an influential report has predicted.
The study warned that a “disorderly Brexit” would hit the German economy the worst out of all 27 EU member states.
The country’s reliance on exporting cars and vehicle parts to the UK would jeapordise 15,000 jobs, scientists from the Leibniz Institute for Economic Research Halle and the Martin-Luther-University Halle-Wittenberg found.
The figures sparked fresh hope that German Chancellor Angela Merkel will come to Theresa May’s rescue. Traditionally she has been one of Britain’s closest EU allies.
Leading Brexiteers said the report proved why the PM must stand firm and carry through with her threat to leave without a deal in order to secure concessions from the EU.
If Britain leaves without a deal then trade with EU countries would be based on World Trade Organisation (WTO) rules.
That would mean car imports would incur a 10 per cent tariff when they crossed the UK-EU border.
The report warned: “In no other state is the effect on total employment as great as in Germany.”
So the Government must stick now fully adopt the Malthouse compromise and tell the EU this is it or we leave without a deal.
Iain Duncan Smith
The authors added: “The employment effects of a hard Brexit would be noticeable above all at the automobile locations.”
Worldwide, Germany accounts for about one in six of jobs at risk of a no deal Brexit.
Some 180,000 jobs in EU member states will be affected - out of a total of 612,000 worldwide, according to the researchers.
Leading Brexiteer and former Tory leader Iain Duncan Smith said: “This tells you that the British government must not have in their minds the thought of giving in at this point because the pressure is now beginning to ramp up on the EU.
“Despite all the pomp and nonsense, the reality will come down to jobs lost, business shut and tax paid.
“That is the pressure now being applied in France and in Germany and elsewhere.
“So the Government must stick now fully adopt the Malthouse compromise and tell the EU this is it or we leave without a deal.
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“Just watch how the pressure grows in the EU.”
Vice chair of the Brexiteer ERG group Mark Francois said: “We want to trade successfully with our former EU partners, avoiding job losses on either side.
However, the EU has historically sold us far more than we sell them, so if they refuse to compromise then they have much more to lose than us.”
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