Analysts have concluded the euro area could see a loss of €33billion (£30billion) if the UK leaves without a deal. Amid the increased concern on the continent, analysts at Allianz have predicted Germany could be the biggest loser of a hard Brexit with a calculated €8.2billion (£7.5billion) loss. Ana Boata, an analyst at Allianz, wrote: “The worst-hit would be Germany (8.2 billion euros), the Netherlands (4.8 billion euros) and France (3.6 billion euros).
“We expect a free trade agreement of the CETA ++ type, on which an agreement will be reached by mid-November.”
Ms Boata also claimed there is a 45 percent chance of a hard Brexit, which could have even worse consequences for the EU.
The analysts also could not completely rule out an extension to the transition period, while also predicting the implementation of any deal to occur in the middle of next year.
Coupled with the huge impact of the coronavirus pandemic, it has become increasingly important for both sides to sign a free trade agreement.
Brexit news: Michel Barnier under pressure
Brexit news: Angela Merkel has called for compromise
Amid the backdrop of a possible no deal Brexit, both Lord David Frost and his counterpart Michel Barnier, held informal talks this week.
Following the Boris Johnson’s warning of a no deal Brexit after the EU summit, Brussels has agreed to intensify talks.
After talks with Lord Frost, Mr Barnier said today: “My message: we should be making the most out of the little time left.
“Our door remains open.”
Brexit news: Charles Michel at the EU summit
With time running out on a deal, German Chancellor, Angela Merkel has urged both sides to make compromises in order for a deal to be agreed.
During a press conference last week, she also insisted the EU would be willing to negotiate despite Mr Johnson’s warnings.
She added: “We asked Britain to be willing to compromise.
“This of course means that we too have to make compromises.
Brexit Britain will ‘not be back’ for trade talks if they fail [Latest]
Barnier sends last ditch plea for Boris to return to negotiations [Update]
Brexit passport could be REDUNDANT as government considers options [Insight]
Brexit news: Angela Merkel has insisted a deal could still be agreed
Brexit news: Boris Johnson has remained defiant
“We are prepared to continue negotiating.
“We have seen light but of course also still shadows in the most recent negotiations, and if it is up to the European Union — and me personally — we should simply continue these talks.’
“An agreement would be in mutual interest.”
Amid the pressure to agreed a deal, the Government was delivered a blow for its hopes of passing the UK Internal Market Bill today.
Fisheries have remained undecided
Peers in the House of Lords voted 395 to 169 to amend the bill as it would allow the Government to violate the withdrawal agreement.
The Government has argued the bill has argued the legislation is required in order to secure trade between the devolved nations.
Due to the vote, it is now expected the legislation will be changed in order for it to be given royal assent.
The Government’s Agriculture Bill is also passing through the Parliament but has been criticised by some officials for “alienating” farmers.
Brexit news: ursula von der Leyen has claimed the EU will not sign a deal at any price
Malcolm Sinclair, the Earl of Caithness claimed today during the debate: “The Government has been unnecessarily obstructive and intransigent on this Bill.
“And that is a huge sadness because they are alienating a lot of farmers and a lot of those who live in the country who see the Government as being unnecessarily reluctant to accept any improvements to this Bill.”
Additional reporting by Monika Pallenberg.