Angela Merkel misery: Germany ‘taken huge beating’ as £30billion Brexit damage predicted

Nigel Farage says Germany could ‘breakaway’ from EU

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The research, published this week, considers the impact Brexit will have on the European economy as a whole, with estimates suggesting it will amount to 0.5 percent of GDP – amounting to £121billion (€140billion) between now and 2022. Brexit will cost Germany – led by Angela Merkel – £30billion (€35billion) during this period, the Commission’s report warned.

Mr Henkel, who stood down from the assembly in 2019, is also the former president of the Federation of German Industries (BDI).

He told Express.co.uk: “Germany is particularly impacted. Not only was Britain the second largest net contributor to the EU‘s Budget and, it is now for Germany to pick up the largest portion of the missing funds.

“Also, before Brexit, Britain was the third-largest export market for its machine tools, its automobiles and other industrial and consumer goods worldwide.

Since Brexit, German exports have taken a huge beating

Hans-Olaf Henkel

“Since Brexit, German exports have taken a huge beating.”

Mr Henkel said he was “convinced” the long-term impact of Brexit on the EU would be “even more negative” than the data suggested.

He explained: “With Britain having left the EU an important, eloquent and powerful voice for competitiveness, for self-responsibility and for subsidiarity has been silenced and is already missing in Brussels.

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“For instance, Britain would never have agreed to the EU being able to become an independent debtor to finance the Covid relief package in the countries. Without Britain, France now calls the shots Brussels, Germany will as usual duck away.”

The analysis also suggests Britain will not escape unscathed either, with the impact estimated to be in the region of 2.25 percent – equal to about £95billion (€110billion).

Mr Henkel said: “The analysis of the economic impact of Brexit on Britain and the EU by EU experts is not a surprise to me.

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“Together with other German business leaders, I predicted significant negative impacts on growth, employment and wealth in both, Britain and the EU. Brexit was, is and will remain a lose-lose situation for both.

“What may be surprising to many is the fact that such a large negative impact is showing up despite the ‘deal’ reached which was supposed to minimise such an impact.

“But the data show that Brexit itself (with or without the deal) was economically a bad idea in the first place.”

Mr Henkel, who has consistently argued Brussels should have done more to persuade the UK to remain in the bloc, said both British and EU companies were now facing new “significant bureaucratic hurdles” when trying to import-export goods via Calais, Hamburg and Rotterdam, as well as in Dover and other British ports.

Referring to the EU-UK Trade and Cooperation Agreement (TCA) signed at the end of the year, Mr Henkel stressed: “The deal only mitigates some of it.

“Imagine we wouldn’t have had one, the economic impact would have been even worse.

“No wonder that a report just came out declaring that China is now the largest single trading partner of the EU, ahead of the US. Before Brexit, that place belonged to Britain!”

He added: “Note that these data pertain only to the trade of goods, not of services.

“Since the deal didn‘t cover services, Brexit will create another huge gaping hole in future growth in services which is of great importance to Britain.

“Also here, Britain will suffer much more than the EU. It is already clear that for instance in Banking, Insurance and other related financial industries London has lost financial investments and jobs to Amsterdam, Dublin, Frankfurt and Paris.

“It is difficult to imagine that the new trade deals Britain signed with South-East Asia/Australia/New Zealand and with Japan will compensate for the loss in the EU.“

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