Lord Digby Jones, the former director of the CBI and business minister, said that “Remoaners” need to “wake up” to the bullying from Brussels and fight its plans to punish Britain.
His comments came after reports that the EU is drawing up a list of sanctions in a bid to prevent Britain from being economically competitive.
The measures show the bloc is desperate to preserve “a level playing field” to stop its fragile economy from splintering further.
The proposals include tax blacklists, measures against state subsidies for companies and other penalties according to the EU strategy paper.
This follows work carried out by Economists for Free Trade which reveals the British economy could boom by £150 billion a year with Brexit through deregulation, trade agreements and a competitive economy.
The paper said: “International rules do not adequately address the distortive effects of subsidies on investment and trade.
“The EU/ UK agreement will have to include robust provisions on state aid to ensure a level playing field.”
Reacting to the EU paper a furious Lord Digby-Jones said: “So the EU wants post-Brexit sanctions on us to prevent us being globally more competitive than them re regulations and tax.
“So a monolith aching for a return to the 1970s wants to stop neighbourly competition; surely we must ALL fight this! Wake up Remoaners!”
The revelation has added to the case that Britain will be better off without a formal deal with the EU and simply move to World Trade Organisation (WTO) rules.
Under WTO rules the EU is forbidden to apply specific sanctions on economic grounds which it does not apply to the rest of the world unless it has specific trade deals in place.
Former MP Nick de Bois said: “Anti competitive, and opposed to free trade this latest EU threat is a reminder why UK voted to leave, not a reason to try to make us stay.”
In contrast to the EU’s aggressive stance Donald Trump’s US administration is keen to do a free trade deal which would benefit both Britain and America.
This week Roger Stone, Mr Trump’s longest political adviser, told the Daily Express: “What I don’t understand is why the May administration isn’t pushing the Trump administration for a better trade deal.
“It’s in the Trump administration’s advantage to do so and, with Brexit surely coming, despite the fact that they seem to be delaying this as long as they possibly can to the financial detriment to the people of this country, you could have a vibrant and effective new trade relationship because Trump is open for business.”