by Mish

The Financial Times reports Angela Merkel Takes Tough Stance on Brexit Negotiations.

In a speech to the Bundestag on Tuesday morning, Ms Merkel spelt out to London that the EU’s internal freedoms were indivisible — if Britain, like Norway, wanted access to the internal market then, like Norway, it would have to accept freedom of movement.

“We will ensure that the negotiations will not be run on the principle of cherry-picking,” the chancellor said, drawing applause. “We must and will make a palpable difference over whether a country wants to be a member of the family of the European Union or not. Whoever wants to get out of this family cannot expect that all the obligations fall away but the privileges continue to remain in place.”

Her words were a rebuff to Boris Johnson, the chief Brexit campaigner and possible successor to Mr Cameron, who declared on Monday that Britain would retain “access to the single market”.

Ms Merkel also insisted that there would be no informal talks with London before the UK submitted an application to start exit procedures — rejecting suggestions for such discussions from Leave campaigners, who are seeking to preserve as much flexibility as possible in the divorce proceedings.

At the European Parliament in Brussels, MEPs gathered for their own emergency summit to discuss Brexit. In a raucous session, they booed Nigel Farage, leader of the UK Independence party, which spearheaded the UK’s withdrawal from the EU, showering him with shouts of “shame on you!” when he rose to speak.

“Out, out, out!” MEPs chanted, thumping tables.

But Mr Farage was unrepentant. “When I came here 17 years ago, and I said that I wanted to lead a campaign to get Britain to leave the European Union, you all laughed at me,” he said. “Well, I have to say, you’re not laughing now, are you?”

Bundestag Cheers Possible Trade Collapse

There is nothing to cheer about trade idiocy. Everyone benefits from trade. period.


Dear Ms. Merkel, need I remind you UK Trade Deficit with EU Hits New Record.

Figures from the ONS showed that Europe is gradually becoming a less important destination for UK companies. In 2000, 60% of exports went to other EU countries, but the percentage fell to 58% in 2005, 54% in 2010 and 47% in 2015.

Over the same period, imports from the EU remained constant, accounting for 54% in both 2000 and 2015.

Europe has tended to be a less crucial market for UK service sector companies, many of whom have close business links with the US. Since 2000, the percentage of services sector exports going to the EU has remained at around 40%. Taking goods and services together, the share of exports going to the EU has fallen from 54% in 2000 to 44% in 2015.

Germany’s Trade Balance with UK

Dear Ms. Merkel let’s dive into Germany’s Trade Position With the UK.

Bluff or Stupidity?

Germany exports €50,963,643 to the UK than it takes back in imports.

Clearly, Germany would suffer far more damages than the UK were both sides to remain stubborn.

It would behoove the those cheering Merkel to take this into consideration.

The EU really ought to start over. It was supposed to be an organization that broke down trade barriers, not build walls.

But EU rules were so stupid, the UK wanted out. Instead of making more ridiculous demands on the UK and building more walls to stop trade, the EU ought to think about what is happening and why.

Queen of the Nannycrats

Sadly, EU nannycrats are incapable of intelligent thought on trade (and everything else as well, especially immigration).

Thanks to the stubborn stupidity of nannycrats, now led by Queen Merkel to the rousing applause of fools who don’t understand trade, there is a very real risk of a global depression.

Mike “Mish” Shedlock

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