'A lot to lose' Angela Merkel's carmakers warned about HUGE problems if Brexit 'no deal'

Germany would rather see their own carmakers suffer
than offer the UK a good Brexit deal, an economist has
claimed.
Ruth Lea, an Economic Adviser at Arbuthnot Banking
Group, said Germany “have a lot to lose” if Brexit
negotiations fall through with the Brussels bloc.
This week the Prime Minister confirmed the UK was
preparing for a “no deal” scenario with the EU if talks
fail.
Speaking exclusively to Express.co.uk, Ms Lea warned
German manufacturers about the risks of “no deal”.
“I have always thought that actually, Germany has got
quite a lot to lose if there isn’t a trade deal,” she said.
“They do have an absolutely ginormous trade surplus
with us.
Economist Ruth Lea warned Angela Merkel about the
impacts of Brexit to German industries
“Actually the EU has a trade surplus of visible trade of
about £80billion to £90billion which is enormous.
“ Germany’s trade surplus with the UK is £2.5billion to
£3billion a month. That’s enormous. How many
German jobs are involved in that?
“The problem is for German industry is that the
German politicians play the game that we are actually
more concerned about the European political project
than they are about their manufacturers.
“At least that is what they say up front. What they say
behind closed doors, you and I will never know.
Dutch MEP blasts
'exasperating' UK for
challenging Brexit
rules
'Britain will PAY'
says Juncker in
Brexit rant
RELATED ARTICLES
“At the end of the day, if the German Government was
given the choice between standing up for the
European project and it is very important that ‘Britain
must not get a good deal because that might damage
the European project'. Or actually saying perhaps we
ought to be nice to our car industry, they will stand up
for the European project.
“To cut a long story short, how much influence the
German manufacturers can actually bring on the
German Government is very questionable”.
The UK is the second biggest export market for
German car manufacturers with a value of nearly
£26billion.
Dieter Kempf, head of the BDI, which represents
German businesses, said it was the UK's responsibility
“to limit the damage on both sides of the Channel”.
He told
the
Observer: “Defending the single market, a key
European project, must be the priority for the
European Union . Europe must maintain the integrity of
the single market and its four freedoms: goods,
capital, services, and labour.”
The BDI has also warned German firms operating in
the UK to brace themselves for a “very hard Brexit”
and told its members to take precautions or be
prepared to face heavy economic losses.
Managing director Joachim Lang highlighted the
importance of ensuring as smooth a transition as
possible and stressed that Britain remained one of the
nation’s most important trade partners.
Ms Lea finished by adding if she were a German car
exporter she would be concerned about the prospect
of a “no deal” scenario with Britain.
She said: “If I were a German car exporter or a French
wine exporter, or an Italian wine exporter or Spain, we
have deficits with all of these countries.
Brexit negotiations: UK’s key
policy positions
Wed, September 13, 2017
Here is a summary of the UK’s main proposals for
Brexit
PLAY
[Getty Images]
GETTY IMAGES 1 of 8
“I don’t think people realise what deficits we have with
them. We are a very very important market to these
countries.
“If I were any of those exporters, I would be
concerned if there was a 'no deal' with the United
Kingdom. In other words, they would then have to face
the tariffs that this country would actually impose
whatever they are, we don’t know what they are yet.
“The whole political dialogue in the European Union is
all about the project and sticking together and not sort
of letting Britain get away with it.”
Both Michel Barnier , the EU’s chief Brexit negotiator
and David Davis, reiterated after the fifth round of
divorce talks this week that both sides were preparing
for “no deal”.