Press

Catalan President Carles Puigdemont also wants the EU to trigger a mechanism known as Article 7 which would suspend the membership rights of Spain on the grounds that it has breached EU values like the respect for human rights or the rule of law. But there is little chance the EU will use this ‘nuclear option’, according to Camino Mortera-Martinez, a research fellow at the Centre for European Reform think-tank.

Simon Tilford, chief economist at the Centre for European Reform, believes the EU will wait until the US Trade Commission rules on last week’s decision, probably early next year, before showing its hand: “But the EU will also have a choice. It could see this as an opportunity to step in and demonstrate to the British the benefits of being members of a big market and a strong trade policy, and to expose the Brexiteers and their inability to act. On the other hand, they might decide this is a good opportunity to hang the British out to dry and teach them a lesson, exposing how vulnerable Britain is going to be in a post-Brexit world.”

Ms Leadsom, an ardent Brexiteer, told the Centre for European Reform (CER) fringe event she would remain in the cabinet “as long as the Prime Minister wants” after she diverged from Tory policy by saying the UK would take back control of its “money, borders, laws” by its official exit from the bloc in 2019.

On the threat of a Trump trade war, Simon Tilford at the CER warns the White House's escalation is just a taste of things to come for post-Brexit Britain: "Brexiters assume Britain will face a benign international environment once freed from the EU to take advantage of open markets elsewhere. They take for granted that the UK would be able to rely on the US underwriting the global trading system. This was always naive, but has become delusional with the election of Donald Trump."

The EU and single market are a “core national interest” for Germany, “essential to its stability, security and prosperity”, said Christian Odendahl of the Centre for European Reform. All major parties and most voters bar the 13% who cast their ballots for the anti-immigrant AfD want more EU cooperation, not less.