No deal could cost the EU £200billion and a million jobs

A ‘NO DEAL’ Brexit would cost the EU nearly £200billion in lost output and more than a million jobs, the International Monetary Fund has warned.

Ireland would be worst hit due to its close trade ties with Britain, followed by the Netherlands and Denmark. Germany would also be in the firing line.

The IMF said in its annual health check on the eurozone that if a trade deal is not agreed, the EU’s economic output is likely to be 1.5 per cent lower than it would have been.

Ireland’s economy would suffer a 4 per cent hit if the UK left the EU without a deal, according to the organisation. Previous estimates have suggested the UK would face a 4 per cent blow.

It added that sky-high youth unemployment posed a major threat to prosperity in the eurozone. The jobless rate among under25s was found to be around 20 per cent in almost half the countries that have ditched their own currencies in favour of the euro. Nearly 14million people are out of work in total, including 2.4million under 25.

The IMF even raised the prospect of a recession in the eurozone, warning: ‘Risks are particularly serious at this time. Mediumterm growth prospects remain lacklustre. The economy could yet be tipped into a hard landing.’ The prospect could fuel fears that Europe faces a lost generation who may never find work.

The jobs crisis in the eurozone is in stark contrast to the UK, where employment is at a record high and unemployment has fallen to a 43-year low. Brexit campaigner John Longworth, the former director-general of the British Chambers of Commerce, said: ‘While Britain is working, Europe definitely isn’t.’ Youth unemployment is highest in Greece at 43.2 per cent, followed by Spain at 33.8 per cent, Italy at 31.9 per cent, Cyprus at 22.4 per cent and Portugal at 20.8 per cent.

The pro-Brussels IMF has consistently warned of the damage of Brexit to Britain – although it has been forced to admit it was far too gloomy about the UK’s prospects.

Meanwhile, Brussels warned of ‘severe’ disruption at borders yesterday as it demanded the EU’s 27 remaining member states accelerate preparations for a ‘no deal’ Brexit. A 16-page document published by the European Commission calls on nations and businesses to ‘take action now’ to boost contingency plans due to the ‘uncertainty of the negotiation process’.

The document, drawn up by the team of EU Commission secretary-general Martin Selmayr, was published just hours before new Brexit secretary Dominic Raab landed in Brussels for the first time.

Officials said the timing was orchestrated to try to ‘embarrass’ Mr Raab, as the document paints a picture of chaos and claims ‘many’ businesses are deserting Britain.

In the event of a hard Brexit, the paper warned: ‘The European Union must apply its regulation and tariffs at borders with the UK as a third country, including checks and controls for customs. Transport between the United Kingdom and the European Union would be severely impacted.

‘Customs controls at borders could cause significant delays, eg in road transport, and difficulties for ports.’

Brussels has set an October deadline for the Withdrawal Agreement to be finalised to allow time for the EU’s 27 governments and the European Parliament to ratify it before Britain leaves in March.

FOr months the constant refrain from Brussels has been that Britain will suffer most from a no-deal Brexit. But yesterday more evidence emerged of the catastrophic impact it would have on the eU.

After the International Monetary Fund this week downgraded its growth forecasts for France, Germany and Italy, it now releases an excoriating report into youth unemployment. In nearly half of eurozone countries, 20 per cent of young people are out of work – an appalling legacy of millions of wasted lives.

The IMF also concludes that no deal would cost the eU £200billion in lost output and more than one million jobs, and that Ireland would suffer most.

elsewhere, a French journalist alleges that eU commissar Jean-Claude Juncker is drunk at high-level meetings and glasses of ‘water’ handed to him by lackeys are in fact gin. Do we really want this man continuing to wield huge influence over us?

Meanwhile, Irish Prime Minister Leo Varadkar claims British planes could be banned from flying across Irish skies in the event of a no- deal Brexit. Who does he think he’s kidding?

hasn’t it occurred to this Brussels patsy that we could refuse Dublin’s planes permission to cross the UK? That would hardly go down well with his voters.

Is it too much to hope that this posturing stops and europe starts adopting a mature, grown-up approach to the negotiations?