Brexit no-deal to wreak havoc to the Eurozone – Dutch report warns | UK | News |


Their report reads: “In this scenario, the UK economy itself is hit the hardest.

“But the economic effects on the neighbouring countries, such as Ireland, the Netherlands, Denmark, Belgium and France will be considerable.

“The EU as a whole will also feel with Brexit at the moment that the growth is already declining sharply.

“It is also quite possible that it is precisely those countries that have relatively few direct contacts with the UK, but which already have a substantial budget deficit, are going to have a hard time.

“Italy in particular is very vulnerable to an economic shock, due to high public debt and the weak banking sector. This can turn back on the Eurozone.”

The first two days after Brexit will be important in discovering if EU-wide plans to limit chaos in the event of no deal, according to the Dutch MPs.

The report said: “The first 48 hours thereafter are crucial to prevent a chaotic Brexit from leading to chaotic scenes in the Netherlands.

“No matter how many preparations and measures the Netherlands take before Brexit, it is as the British say: ‘the proof if in the pudding’.

“Ultimately, on the day of Brexit, it will appear if the preparations have been effective and sufficient.”

The delegation, which included former deputy prime minister Lodewijk Asscher and Anne Mulder, an MP for the ruling Dutch People’s Party for Freedom and Democracy, were largely unimpressed with the performance of their British counterparts during the Brexit negotiations.

They met with senior Brexiteers such as Steve Baker, along with Conservative party chairman Brandon Lewis, Brexit select committee chair Hilary Benn, and shadow Brexit secretary Sir Keir Starmer. 

The Dutch MPs largely blamed indecisive politicians in Westminster who are still arguing over “what kind of Brexit they want”.

Their report states: “The British are only now having the discussion about what kind of Brexit they want exactly, a debate that should have been held three years ago before the referendum.

“A number of British politicians have pretended Brexit brings enormous benefits. This has created unrealistic expectations. The result is that Brexit becomes a disappointment.”

They predicted that “bitter negotiations” would continue between opposing MPs that would mean the “uncertainty continues” for the European Union.

Sources familiar with the Brexit negotiations in Brussels believe Theresa May will require a “short, technical extension” to the EU’s Article 50 exit clause in order to ratify the deal in British law, even if she secures a Commons majority in the next meaningful vote expected on March 12.

This means post-Brexit trade talks are unlikely to fully resume until 2020 as the European Commission, Council and Parliament complete their reshuffles following European elections in May.