With March 29 drawing ever nearer, the EU are still insisting that the Withdrawal Agreement will not be renegotiated. This could be to their own detriment because if Theresa May does not manage to secure a deal Parliament will accept the UK will leave the EU in just 46 days with no deal. According to a new study, a “disorderly Brexit” would hit the German economy worst of the EU 27.
The report warned: “In no other state is the effect on total employment as great as in Germany.”
The European power is expected to account for about one in six of all jobs at risk in a no deal Brexit scenario.
This news comes from scientists at the Leibniz Institute for Economic Research Halle and the Martin-Luther-University Halle Wittenberg found.
These figures spark renewed hope that Mrs Merkel might try to work together with Theresa May to secure a better Brexit deal.
Leading brexiteers said the report should bolster Mrs May’s threat to leave without a deal without further concessions from the EU.
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, businesses shut and tax paid.
“That is the pressure now being applied in France and in Germany and elsewhere.
“So the Government must stic know fully adopt the Malthouse compromise and tell the EU this is it or we leave without a deal.”
The Malthouse compromise would involve a redrafting of the backstop and an extension of the transition period until 2021.
Experts at the influential economic research centre said that Germany’s reliance on exporting cars to the UK means this industry would be particularly at risk.
Germany sold 770,000 vehicles to the UK in 2017 and brand new tariffs could jeopardise 15,000 jobs.
If the UK leaves without a deal trade with EU countries would be based on World Trade Organisation (WTO) rules, meaning a 10 percent tariff on car imports.
The report said: “The employment effects of a hard Brexit would be noticeable above all at the automobile locations.”
The study estimated that Wolfsburg, hometown of Volkswagen, could be hit the hardest by a collapse of exports.
Around 500 jobs, roughly 0.4 percent of the Wolfsburg workforce, would be threatened.
Around 180,000 jobs in EU member states will likely be affected, out of a total of 612,000 worldwide.