Barnier says Brexit a 'lose-lose' as the Eurozone slips into recession

2023-06-08

Typical Barnier! As the Eurozone slips into recession, Brussels’ former chief negotiator has a cheap shot at Brexit – calling it a ‘lose-lose’ game

Eurostat figures show the eurozone economy shrank by 0.1 per cent

Brexit was a ‘lose-lose’ game for Britain claimed a top EU official yesterday – just as the eurozone slipped into recession.

The damning verdict on this country’s departure from the European Union came from Brussels’ former chief Brexit negotiator Michel Barnier.

But Britain has managed to defy the doom-mongers and avoid the recession that has hit the single currency bloc.

Following a sharp downturn in Germany, official figures from Eurostat show the eurozone economy shrank by 0.1 per cent in the first three months of this year following a similar contraction in the final quarter of 2022.

That means it is in recession – defined as two consecutive quarters of decline – with Germany, Europe’s biggest economy, leading the way.

The damning verdict on this country’s departure from the European Union came from Brussels’ former chief Brexit negotiator Michel Barnier

It has been dubbed the ‘sick man of Europe’ and a ‘problem child’ for the region after its economy declined by 0.5 per cent at the end of 2022 and 0.3 per cent in early 2023. Yet, even with the eurozone reeling, Mr Barnier declared: ‘Brexit is a lose-lose game.’

He told Bloomberg TV: ‘There is no winner. It’s a divorce.

‘Divorce is always painful and costly. Now the UK faces the concrete and mechanical consequences of Brexit.’

The UK economy continues to grow, and the outlook has been upgraded by the International Monetary Fund and Organisation for Economic Co-operation and Development in recent weeks.

In a further boost, the British Chambers of Commerce last night said it now expects the UK to grow by 0.3 per cent this year, having previously predicted a 0.3 per cent contraction.

The BCC did, however, warn that the economy remains subdued.

Vicky Pryce, senior member of the BCC Economic Advisory Council, said: ‘Today’s forecast from the BCC shows that we are on course to only narrowly avoid a recession. With anaemic growth rates predicted, there is a real danger of slipping back into recession territory at any point.

‘The risk of recession creates greater uncertainty for firms, with the level of business investment likely to remain low.’

Doom-mongers at the IMF and beyond have long predicted Britain would be the worst performing G7 economy this year – but Germany has emerged as the laggard.

Eurostat had predicted that the eurozone economy would be flat in the final three months of last year and grow by 0.1 per cent in the first three months of this year – meaning recession would have been averted. But the slump in Germany forced it to revise its assessment yesterday. Like Britain, the region has been hammered by high energy and food prices and rising interest rates as central banks battle to control inflation.

John Longworth, former BCC head and a Brexit campaigner, said: ‘The reality of Brexit is proving the UK has all the potential to do better outside the EU. Germany is going into recession, the UK has not so far. We are the number one destination for investment in Europe. We are better off out.’

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