‘Increasing likelihood’ of no-deal Brexit

THE likelihood of Britain exiting the EU without a deal is “increasing by the day”, Jeremy Hunt has said.

Ahead of talks with his opposite numbers in France and Austria, the Foreign Secretary insisted that if Brussels fails to strike a withdrawal agreement with the UK it would cause job losses on both sides of the Channel “if Brexit goes wrong”.

Mr Hunt accused the European Commission of waiting for Britain “to blink” in Brexit talks as he urged Paris and Berlin to put pressure on Brussels to cut a deal.

He told the London Evening Standard: “The probability of no deal is increasing by the day until we see a change of approach from the European Commission who have this view that they just need to wait and Britain will blink. That is just a profound misunderstanding of us as a nation.

“There is real chance of no deal by accident. Everyone is assuming, no, no, no, this will never happen. Well, actually, it could.

“France and Germany have to send a strong signal to the commission that we need to negotiate a pragmatic and sensible outcome that protects jobs on both sides of the Channel because for every job lost in the UK, there will be jobs lost in Europe as well if Brexit goes wrong.”

The Foreign Secretary said a no deal would make it harder for European businesses to access finance via the City.

He said: “There would not just be economic consequences for the UK, there would be profound economic consequences for the rest of Europe.

“Probably the City, as the financier of European business, is the central point to make here. If it became harder for European businesses to access finance, that is far from trivial.

“The City itself would find a way to thrive, whatever the outcome of the Brexit negotiations.

“If it became a low-tax, lowregulation, offshoot fully outside the EU, it would find a way to thrive in those circumstances. But for European businesses the impact would be profound.”

Mr Hunt said that a “breakdown in relations and trust between Britain and European countries” would be a “profound geo-strategic mistake”.

The comments came after Tory MP Marcus Fysh accused Downing Street of launching a scaremongering campaign.

He told the BBC: “Number 10 has briefed that they want to scare people witless.

“That is irresponsible, scaremongering nonsense and it should stop right now and they should get behind Brexit which people voted for.”