Wales could be biggest Brexit loser
Wales is also one of the UK’s two leading exporters to the European Union, with over 60% of its exports going to the EU, and so would be most affected by potential tariffs.”
In contrast, it states, London and the southwest export “just over 40% of their goods to the EU”.
The analysis adds: “The devolved nations of Wales and Northern Ireland are also threatened by the loss of EU structural funds, which Wales benefits from far more than any other British region, with grants from EU funds representing almost 1% of the region’s Gross Value Added annually.”
Last year’s EU referendum saw Cardiff and the Vale of Glamorgan vote to stay in the EU as did Ceredigion, Gwynedd and Monmouthshire.
All other areas of Wales voted to leave.
Demos warns that sectors such as manufacturing and agriculture are at particular risk because of Brexit.
Welsh Conservative leader Andrew RT Davies described the Demos report as “tiresome”.
He said: “The Welsh and British public have been sold prophecies of doom and gloom before now. According to project fear we should be holed up in a post-apocalyptic wasteland in threadbare clothes eating tinned food by now.”
But Plaid Cymru Brexit spokesman Jonathan Edwards said: “This report shows why it is so important that Wales keeps its economic links with Europe following Brexit. Our economy, and therefore people’s jobs and wages, are heavily driven by our exports and the majority of those exports go to the EU.”
A Ukip spokesman said: “Brexit frees the UK from the shackles of excessively subsidising EU bureaucracy. What Wales now needs is a fair share of the money saved and Ukip Wales will fight for that.”
A Welsh Government spokesman underscored its priorities of ensuring that “full and unfettered access” to the single market continues and Wales does not “lose out on a penny of funding”.
He said: “Since the vote to leave the EU, we’ve published Securing Wales’ Future – a comprehensive, credible plan for Wales as the UK prepares to trigger the process of leaving the European Union.
“We’ve been absolutely clear that full and unfettered access to the Single Market is vital for the future prosperity of Wales.
“We urge the UK Government to make this the top priority for negotiation with the EU. We’ve also made clear that Wales should not lose out on a penny of funding as a result of leaving the EU.
“We expect the UK Government to make good on promises made during the referendum campaign that Wales would not lose funding as a result of the UK leaving the EU.”