Brexit warning: No deal would cost Dutch government £2billion

Posted on Dec 11 2018 - 9:28am by admin

New figures released by the bloc show the Dutch government would be hit by more than €2.3 billion (£2.1 billion) in direct costs if Britain leaves the EU without a deal. The study, which was undertaken by the Court of Audit, said the costs would be incurred by the Netherlands over four years until 2023. The Court of Audit, the EU’s fifth institution, performs official analyses for government decision-making purposes. It noted that the Dutch Cabinet and much of the country’s industry have been preparing “intensively” for Brexit since the 2016 referendum.

However it warned the Netherland’s customs office still may not be ready in time for the so-called “worst-case scenario”.

The UK ranks as Amsterdam’s third-largest trading partner, after Germany and Belgium.

Monday’s figures do not take into account any lost revenue if a recession spreads across the continent as a result of Britain leaving the EU.

The figures do complement the largest official study taken by the Dutch government.

In 2016, The Netherlands government’s Economic Policy Analysis bureau investigated Brexit’s impact on indirect costs to the Dutch economy.

That study found that trade lost as a result of Brexit would reduce the Dutch economy by up to 1.2 percent of GDP every year to 2030, a total of €10 billion.

The news comes after a shock UK government study, leaked last week, found Ireland would face food shortages amid a seven percent drop in GDP.

The report said Ireland is “a more open economy than the UK, accounting for 60 percent of GDP comprised of goods and exports, as opposed to 40 percent in the UK.”

The same report added that Britain would be hit by a five percent drop in GDP from a no deal Brexit but it would be worse for Ireland because of its dependency on the UK.

Following the leak of the paper, former Cabinet member Priti Patel demanded the Prime Minister go back to Brussels to renegotiate the deal, which she has announced she will do this afternoon.

Ms Patel told The Times: “This paper appears to show the government were well aware Ireland will face significant issues in a no-deal scenario.

“Why hasn’t this point been pressed home during the negotiations?

“There is still time to go back to Brussels and get a better deal.”

Meanwhile, the Prime Minister has agreed to call off tomorrow’s crunch Brexit vote.

Speaking to MPs in Parliament this afternoon, Theresa May said: “I spoke with a number of European leaders over the weekend, and in advance of the European Council, I will go to see my counterparts in other members states and the leadership of the Council and Commission.

“I will discuss with them the clear concerns this House has expressed.”

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