Small EU businesses voice ‘major concerns’ over lack of progress in ongoing Brexit talks

Charles Grant, director of the UK-based Centre for European Reform, says the biggest impact of no deal would be “political.” 

Grant said, “An acrimonious end to the transition would hit economic confidence and make it very hard for the UK and the EU to build close cooperation on trade or security for years to come.”

The UK will remain in its transition period until 31 December but the two sides want to reach a deal by October to allow the European Parliament a chance to sanction it.

Grant adds, “Although a thin FTA would harm the UK economically, it could be an interim measure. In the long run, when emotions over Brexit have subsided – when leavers no longer suspect remainers of trying to block it, and EU governments have stopped fearing that a slash-and-burn UK economy will outperform them – rational actors on both sides may see the benefit of closer economic, political and security cooperation.”