EU admits UK’s departure will cost it another €70 billion
The EU’s economy has already dropped by over €2.5 TRILLION as a result of Brexit
© Brexit Facts4EU.Org 2021
Facts4EU.Org reveals the shocking economic facts for the EU, from the EU’s own financial report
Facts4EU.Org has analysed the EU’s own report on its economic prospects, which we obtained on Friday (19 Feb 2021). Our analysis reveals the true extent of the massive cost to the EU in losing the United Kingdom - its second-largest economy.
Not only has the EU’s GDP plunged on Brexit, but the EU Commission now admits that the EU’s GDP will continue to be hit in the coming years. A further €70 billion will be wiped off the EU’s economic output by the end of next year, according to the official EU report seen by Facts4EU.Org on Friday.
Brexit Facts4EU.Org Summary
The massive hit to the EU’s economy as a result of Brexit
1. EU now admits its growth rate will fall for the next two years as a result of the UK leaving
© Brexit Facts4EU.Org - click to enlarge
2. The EU’s economic size has already plummeted after its 2nd largest economy left
The latest figures reported by the EU's official statistics agency are for 2019 and show:
- EU GDP including the UK : € 16,490.5 billion
- EU GDP without the UK : € 13,963.9 billion
- Without the UK, the EU's economy would have shrunk by € 2,526.6 billion, approx. € 2.5 TRILLION per annum
© Brexit Facts4EU.Org - click to enlarge
When the UK left the EU, the EU economy plummeted by over 15% overnight
What did the EU actually say?
In its latest annual report on its economic prospects, as usual the Commission continued to try to make light of the loss of the United Kingdom. Nevertheless even they were forced to admit that the EU will grow less fast, as a result of Brexit.
“For the EU on average, the exit of the UK from the European Union on FTA terms is estimated to generate an output loss of around ½% of GDP by the end of 2022.”
Naturally they are not able to bring themselves to make any statement that the EU's economy has in fact already shrunk very significantly. When the United Kingdom formally left the EU on 31 January 2020, the EU's GDP plummeted by 15.3% overnight.
However, it could have been even worse. If the EU had not secured its ‘Trade and Cooperation Agreement’ with the UK on 24 December, the economic effects for the EU would have been more severe.
“The agreement reached between the European Union and the United Kingdom on the terms of their future cooperation, reduced the cost [to the EU] of the UK’s departure from the Single Market and Customs Union”
“Member States with a higher share of goods trade with the UK therefore benefit relatively speaking more from the FTA than those with a higher share of trade in services. In sum, while the FTA improves the situation as compared to an outcome with no trade agreement between the EU and the UK, it cannot come close to matching the benefits of the trading relations [to the EU if the UK had stayed a member].”
The Euro is in intensive care, the EU economy has plummeted, but the EU fanatics sail on into the storm
The EU really doesn’t get it and it seems that it never will. In addition to publishing its first 'Economic Forecast' of 2021 which we have reported on above, last week the EU Commission also made a statement about its new trade policy for the future:
“The European Commission has today set out its trade strategy for the coming years. Reflecting the concept of open strategic autonomy, it builds on the EU's openness to contribute to the economic recovery through support for the green and digital transformations, as well as a renewed focus on strengthening multilateralism and reforming global trade rules to ensure that they are fair and sustainable. Where necessary, the EU will take a more assertive stance in defending its interests and values, including through new tools.
“Addressing one of the biggest challenges of our time and responding to the expectations of its citizens, the Commission is putting sustainability at the heart of its new trade strategy, supporting the fundamental transformation of its economy to a climate-neutral one.”
- EU Commission statement, 18 Feb 2021
The entire world is reeling from the extreme reaction that governments globally have taken to the Covid virus, large numbers of businesses have already collapsed and far more are on the verge of collapse, and millions of people’s jobs across Europe have either been lost or are threatened.
Despite this, the ideologically-driven fanatics in Brussels sail on regardless, in the knowledge that their high salaries, huge perks, and privileged lifestyles are safe, regardless of the tempestuous seas faced by ordinary people.
Instead of focusing on liberalising the EU's trade policies and opening up its markets, the EU apparatchiks continue to double down on their obsessions with 'sustainability' and a variety of ideological objectives. Last year the EU's economy faced a double whammy: the departure of its second-largest economy, and the devastating effects of Covid. The EU suffered the biggest fall in GDP in its history, but readers would never know this by listening to the unelected bosses of Brussels.
Who else provides such stark analyses of the real picture of the post-Brexit world, based on official facts? The BBC? Sky News? ITN? The Times or Financial Times?
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[ Sources: EU Commission | IMF ] Politicians and journalists can contact us for details, as ever.
Brexit Facts4EU.Org, Tues 23 Feb 2021
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