Angela Merkel wants to punish Britain because she's worried more countries will quit EU if we get a good deal

According to the influential Centre for European Reform think-tank it is France, Germany and the EU Commission that are opposed to a good deal. ...CER Director Charles Grant said UK officials have noted that “several member-states are uncomfortable with the hard line taken by France, Germany and the Commission”. Meanwhile, bureaucrats in Berlin and Paris fear that they are becoming increasingly isolated due to their tough approach, meaning it will be “harder for France and Germany to get their way” in the second phase.

Mr Grant said: “Angela Merkel is apparently concerned about the consequences of a deal that allowed the UK to retain partial membership of the single market. “The UK could then thrive outside the EU, enabling eurosceptics in other countries to argue that a British-style deal could allow others to succeed on the same terms as the British. “She has a particular concern about the Dutch wanting to follow the British out.”