German Economic Minister: Optimistic we can avoid No Deal

With increasing pressure across Europe for EU leaders to secure a deal with the UK, the German government have been amongst those seemingly most open to a resolution, including their Economy Minister today. This is important as the European Union is increasingly dominated by Germany and if they push for changes to Theresa May’s deal to get it over the line, it will happen.

German industry has warned of a No Deal “abyss”, the government have slashed their 2019 growth forecast by almost half and investor morale there is the lowest since 2012.

There has also been a report out that estimates 100,000 German job losses if the UK leaves with No Deal. This has been picked up in the German media and is a topic being increasingly talked about.

That’s on top of Deutsche Bank warning: “The start of the German economy into 2019 has been a major disappointment so far.

“The development of several key cyclical indicators is telling us that the German economy is drifting towards recession right now.” Will German leaders fail to secure a deal with a departing UK, something that would all but guarantee a recession?

Merkel herself has herself spoken of “compromise” and stated: “Let me say emphatically, I will work until the last day to ensure that we have a settled solution for the UK’s exit.”

Today, her close ally and the German Economy Minister Peter Altmaier, told Bloomberg TV: “I’m still optimistic that we can avoid a No Deal Brexit.

“That would be harmful in many aspects, politically and also economically.”

As long as the British government hold their nerve and prepare for a No Deal exit, it is likely that the German government will force movement on the EU side. But taking a WTO Brexit off the table or seeking to extend Article 50 kills off that negotiating power completely. The UK must leave on 29th March, deal or No Deal.