EU Economics

BRUSSELS BOMBSHELL: Europe would lose TWICE as many jobs as Britain under no-deal Brexit

BRUSSELS was today warned that Europe will be hit twice as badly as Britain in terms of jobs lost if its hardline negotiating approach forces the UK to quit the bloc without a trade deal.

In a landmark report experts at Belgium’s leading university Catholic Leuven revealed 1.2 million ordinary Europeans are set to lose their jobs if eurocrats cannot find a compromise agreement.The findings will heap pressure on the bloc’s chief negotiator, Michel Barnier, just before he is set to open the fourth round of talks with Brexit secretary David Davis this evening.

EU Commission chief Jean-Claude JunckerGETTY

EU Commission chief Jean-Claude Juncker

Earlier today Denmark’s foreign minister became the first to break ranks with his colleagues and urge the EU to act upon the generous offer Theresa May made in her Florence speech on Friday.Anders Samuelson told reporters in Brussels the PM’s keynote address did provide ammunition with which to move the negotiations forward in a response likely to provide much encouragement to Downing Street.

In particular he said that Denmark, a close economic partner of the UK, wanted to see a good Brexit trade deal and the EU must make sure “that the negotiations move forward”.The report by three leading economists at the Catholic University of Leuven, published last Thursday, said the EU27 would suffer a 1.54 per cent dip in GDP if it chooses to force a hard Brexit.

And it concluded such a scenario, under which Britain and the EU return to trading on WTO terms, would cost 42,390 jobs in Belgium and a staggering 1.2 million across the whole of the EU.

The UK would also suffer badly in this eventuality, with 526,000 jobs on the line and a potential 4.48 per cent dip in GDP, backing up suggestions by senior EU figures that failing to secure a deal would be a “lose-lose” situation.The academics’ research backs up previous reports which have also suggested that a return to WTO terms would have a devastating effect on the European economy as well as Britain.

Earlier this year the respected consultancy firm Deloitte produced analysis showing that Germany’s car makers stand to lose £6 billion in sales every year from a hard Brexit.

That would mean factories having to shed 18,000 highly skilled workers from what is the country’s trademark industry, which is already in dire straits thanks to the dieselgate scandal.Earlier this month Mr Davis insisted that what he called the “North Sea littoral” of countries – our neighbours stretching from France around to Sweden – needed a trade deal with the UK as soon as possible.

He said: “All of them know that the impact of no deal would be quite dramatic, more dramatic than for us. The interests in those other countries is as much engaged in having a deal as ours is and that’s what will drive it in the end.”

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Do you seriously think Brussels gives a monkeys how many jobs are lost?
Punishing Britain is all they care about, common sense does not exist at high level in Brussels.
Cutting your nose to spite your face is Juncker all over.

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