Post-Brexit Britain WILL secure strong trade deal with EU, insists leading economist

BRITAIN will thrive outside the European Union by using its influence to secure a strong trade deal, according to a senior economist.

Dr Michael Ivanovitch said the Government has “huge leverage” in its trade negotiations after it triggers Article 50 of the Lisbon Treaty and leaves the union.

He insisted member states would be foolish not to agree to a free-trade deal with the UK, currently the bloc’s second-largest trading partner.

Dr Ivanovitch highlighted German Chancellor Angela Merkel’s desire to keep trading with Britain due to the close links between the countries.

He said: “Britain is Germany’s third-largest export market, after the US and France.

“Will Germany give this up by shutting the UK out of a free-trade agreement with the EU? Of course it won’t.

“No wonder that Chancellor Merkel keeps saying that there is no need to be ‘nasty’ with the UK.”

The UK’s military prowess will help the Government in its negotiations as it looks to carve out a new future, added Dr Ivanovitch, an independent analyst.

He said: “All Europeans know and publicly recognise that Europe’s defence makes no sense without the well-equipped and well-trained British military forces.

“As the NATO’s Secretary General said last Friday, the UK ‘will remain a strong and committed NATO ally and will continue to play its leading role in our alliance’.”

His comments come after George Osborne ruled out an emergency post-Brexit Budget – at least until a new Prime Minister is appointed, expected to happen in September.

During the referendum campaign, the Chancellor had said Brexit could trigger a recession that would require a £30bn package of spending cuts and tax rises.

He told reporters at the Treasury that Britain’s economy is “about as strong as it could be” to confront the challenge of separating from the EU.

Anti-EU campaigner and ex-London mayor Boris Johnson welcomed Osborne’s admission this morning, declaring: “It is clear now that Project Fear is over.”

He added: “There is not going to be an emergency budget, people’s pensions are safe, the pound is stable, the markets are stable, I think that’s all very good.”

Johnson also sought to reassure EU nationals living in the UK that their status would not be affected by last week’s historic referendum vote.