A new report has come out showing if negotiations ended in a No Deal exit, the largest economies in the EU would suffer a £33 billion economic hit. This would be a devastating blow to the EU, and is one of the main reasons why the EU begged to come back to the negotiation table.
Boris was happy to leave the EU on an Australian-style arrangement because the trade deficit was so great that Boris knew it would damage the EU far more than it would the UK. This devastating report was produced and released by German insurance firm Allianz. The report shows germany alone would take a colossal hit of £7.4 billion in trade come the 1st of January 2021 if a deal isn’t found.
Euler Hermes expects that the Netherlands will lose 10.5% of the current value of exports to the UK (- € 4.8 billion), partly due to the rise in import prices. Germany will take a €8.2bn hit and France €3.6bn.https://t.co/SlRKgvvAhP— Bruno J. Navarro (@Bruno_J_Navarro) October 21, 2020
This is why Merkel, currently, is trying to persuade Marcon to shift on his red lines on fisheries to avoid an EU New year car crash. Its said German car-makers, chemical producers and many other sectors would see a massive decline due to tariffs being slapped on their industries if a no deal hit the EU. As Boris and others have said for a long time, the EU has alot more to lose than the UK has in these negotiations.