From cars to pets, Merkel tells UK it will pay

Germany’s leader in stern warning to Britain that it can expect no favours if it curbs free movement

THE UK will “pay a price” if it moves to restrict EU immigration after Brexit, Germany’s Chancellor Angela Merkel said yesterday in one of her toughest interventions yet.

Mrs Merkel warned that the European Union would act to protect its interests and could create “obstacles”. And, in a barely veiled threat, she said there could be consequences for the British car industry.

“If the British government ends the free movement of people, that will have its price,” Mrs Merkel told a meeting of trade unionists in Berlin. “That’s not malicious,” she said. “But you cannot expect to enjoy all the benefits and then say there will be an upper limit of 100,000 or 200,000 EU citizens, no more...this will not work.”

Britain will be free to make its own rules after Brexit, she said but warned that the EU would not stand by if its interests were threatened. “We would have to think about what restrictions we could create,” she said. “The British car industry relies on supplies from continental European countries. It is up to the British side, who say they want minimum disruption.”

There could even be consequences for British pets, she said. “Currently, the 250,000 pets, cats and dogs that travel from Britain to the Continent, or the other way, each year are managed within an EU framework,” she said.

“Now they’ll need hygiene certificates: things we don’t even remember.”

Mrs Merkel had not mentioned Brexit in her prepared speech, only in answer to questions. But her language was unusually blunt. She is a staunch backer of freedom of movement but this is the first time she has warned that the issue could have consequences for the UK even if it leaves the single market. She also warned against seeking advantages by opting out of EU rules on workers’ rights and environmental protection.

The EU is prepared to do “everything” to ensure friendly relations with the UK, Mrs Merkel said. But she added that it was up to Theresa May’s government how negotiations work out.

She stood by the EU’S insistence that the rights of its citizens currently living and working in the UK must be agreed at the start of negotiations. “What does it mean for the children?” she asked.

The EU will “naturally” consider the interests of the 48 per cent of Britons who voted to remain, she said in an answer to a British trade union representative. But she added that it was up to trade unions to push for a level playing field and to minimise negative effects.

Asked about Northern Ireland, she replied: “You see how quickly it can be a question of war and peace.”

♦ Britain could pay as little as £5billion to leave the EU according to analysis by the Institute of Chartered Accountants in England and Wales. It rejects estimates of a “divorce bill” as high as £86 billion, taking into account rebates, EU spending commitments and other costs. It came up with costs for three scenarios ranging from £5billion to £30billion.