Boris Johnson’s refusal to accept the controversial Northern Ireland backstop is blamed for the increased likeness that Britain will leave the Euro
Boris Johnson’s refusal to accept the controversial Northern Ireland backstop is blamed for the increased likeness that Britain will leave the European Union without a deal. The memo insists the 27 remaining EU countries will continue to refuse any renegotiation of the withdrawal agreement, which they agreed with Theresa May last November. Ms Merkel, the German Chancellor, will make Berlin’s stance clear to Mr Johnson when they meet before or at the G7 summit at the end of the month.
The gathering, which will be Mr Johnson’s debut on the world stage, is described as a “big moment” where the UK and EU can either announce a breakthrough or failure in negotiations, according to the finance ministry.
The department’s memo reads: “In view of this, it is important from the EU perspective to stick to the previous line.”
It is also noted that Berlin is unsure whether actually removing the backstop will create a majority in the House of Commons for the Brexit deal.
Germany’s preparations for a no-deal Brexit are “largely completed”, the paper adds.
Berlin claims the European Commission will not release any new emergency measures to protect the Continent from the potential fallout if Britain leaves the bloc without an agreement.
But Brussels have been urged to adjust a number of financial arrangements, such as a transitional measure for clearing houses, due to the postponed Brexit date from March to October.
The federal government have passed more than fifty laws and measure to be introduced in the event of a no-deal Brexit.
The finance ministry document lists the transitional arrangements in its field, such as tax and economic policy.
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The German Chancellor made the remarks after meeting with Lithuanian president Gitanas Nauseda.
She said: said: “We have, of course, spoken about Britain’s exit from the European Union and this regard made clear that we want a withdrawal that will at the same time yield a close partnership between Britain and EU member states.”
Germany is teetering on the edge of a recession after figures showed GDP contracting in Europe’ biggest economy, falling by 0.1 percent.
Marcel Fratzscher, president of the DIW Berlin research institute, has predicted Germany’s first recession since 2013 is already underway.
He said: “Most likely we will see another quarter of negative growth, and that’s by definition a technical recession.”
“It’s very mild, but also at the same time, not a very strong performance,” he added.