Punishing Britain over Brexit will HURT EU admits Brussels in shock report

The EU report admits many regions which rely on Britain for its trade and manufacturing would be among the hardest hit.

The French region of Hauts-de-France fears a “punishment” Brexit deal would harm its car manufacturing sector. 

Regional official François Decoster said: “In the automotive sector, there are major concerns regarding future relations with the UK, particularly on the part of the car maker Toyota, which operates in the region.

“For example, 13 per cent of Yaris exports in 2016 went to the UK.”

Local leaders in Lublin, Poland, are worried about a slump in the lucrative export of agricultural and agri-food products. 

And Dutch fishermen fear losing access to UK waters with the provinces of Flevoland and Overijssel facing a 60 per cent fall in business.

There are also growing concerns from major exporters in Germany, Sweden and Cyprus who count the UK among their best customers.

EU chiefs are keen to show unity but behind the scenes are braced for splits to emerge as countries try to protect their own economies as Brexit talks switch to to trade. 

And Brexiteer MPs said the leaked report proves it would be a disaster for Brussels not to strike a free trade deal with Britain. 

Peter Bone, Tory MP for Wellingborough, said: “The EU needs to do a deal with us much more than we need to do a deal with them.

“That’s why it is very surprising to me that we have offered £39billion to allow them to sell £70bn more goods into this country each year than we sell to them.

“There will be a lot of pressure from companies within countries within the EU for their governments to do a trade deal.

“This points out why the likelihood of a trade deal is there – because it benefits them more than us.”

He continued: “Everything points to doing a proper free trade deal with us, and I’m afraid it is only the posturing of the European elites and their governments that they are actually trying to do something that is against the interests of the people in the EU.

“So if this report helps shove the EU elite to do the right thing for the European Union and trade with us on a free trade basis then that’s all the better. 

Tory Brexiteer Bernard Jenkin said: “It is highly significant that other EU member states’ authorities are beginning to engage with the consequences of a no-deal Brexit because it is something that should concern them greatly.

“I think the pressure is mounting on the EU negotiators to deliver a sensible deal which disrupts as little as possible.”