German economists have warned that no deal could cause German exports to the UK to plummet by as much as 57%. The highly respected IW Economic Institute based in Cologne called for policymakers to take “constructive action” to avoid what they called the “horror scenario” of no deal.
The boss of the BDI – Germany’s equivalent of the CBI – has also warned that a “disorderly Brexit” would be a “massive crisis” for the EU, demanding that political leaders achieve a “breakthrough in the talks” at the next EU summit. As Brexiteers have been saying all along, German industry is desperate for a deal. So why is the UK the only side making serious concessions?