German industry cannot save Britain from hard Brexit, warns Merkel

Simon Tilford, deputy director at the Centre for European Reform, a pro-EU think-tank, said that taking a hard line with Britain despite the size of its market reflected European concerns that Brexit posed an existential threat to the EU.

“If Britain could leave but retain the advantages of membership, what would prevent other Eurosceptic countries from pushing for similar deals? Like France and Italy, Germany is desperate to avoid setting a precedent that emboldens Eurosceptic movements in other countries,” he said.