German Study States Britain Could Lose €300 Billion If Leaves The EU
The general election in the United Kingdom is expected to take place during the first week of May and if the Conservatives get elected and come to power, then they will most likely move forward with their plan on exiting the European Union. The Conservative party is pushing for a referendum on EU membership and would like to see Britain depart from the bloc.
Two German institutes have carefully analyzed the consequences Britain would most likely face should they make an exit from the EU and have concluded that the biggest impact would be on the financial front. The German study reveals that Britain could lose over €300 billion or close to 14 percent of its GDP. The study was conducted by the ifo Institute and the Bertelsmann Stiftung foundation and revealed that Britain had more to lose than gain by exiting the EU.
The report also reveals that other EU countries would also suffer loses if Britain were to exit the EU but their loses would be minor when compared to that of Great Britain. In a statement, Aart De Geus, chairman and chief executive of the Bertelsmann Stiftung said
A Brexit is a losing game for everyone in Europe from an economic perspective alone – particularly for the UK. But aside from the economic consequences, it would be an especially bitter setback for European integration as well as Europe’s role in the world. Setting the course for a Brexit in the House of Commons elections would weaken the EU.
The Conservatives would like Britain to exit the EU and then form an independent trade agreement with the EU. The terms and conditions of the trade agreement would be significant as it would be the key factor in determining how much money Britain loses or ends up saving. The Conservatives want Britain to have a similar agreement that Switzerland has with the EU and will most likely model their policies in a similar manner. The German study has put forth a best case scenario and a worst case scenario based on what Britain would look like if it exited the EU in 2030.
The report goes on to say that
Possible savings, such as the cancelling of EU budget payments that currently total around 0.5% of the British GDP, could not compensate for economic losses, even in the best-case scenario.
