Greek Warning That No Deal Brexit Could Cause Financial Instability Hands Britain Trump Card

The Associated Press
The Associated Press

The Greek government has warned that it could face “increased financial and political instability” in the near term if the United Kingdom left the European Union without a deal, handing British negotiators potentially useful leverage.

The claim comes in a Greek government paper which points to the hole in the European Union budget that could be created if the commission fails to offer Britain a good deal — precipitating Britain leaving the EU without paying the so-called Brexit divorce bill.

In the case of the UK leaving the EU without a deal — and therefore not paying an estimated £40 billion as a parting gift to Brussels — other European nations would have to increase their contributions, given the European Commission has failed to make savings, and is actually boosting spending at a time its income is to fall instead.

While many nations could — perhaps begrudgingly — afford to pay the increased shall, Greece claims it will not — its national coffers still depleted despite years of austerity measures imposed upon it by the European Union.

The Daily Telegraph reports the comments of Oliver Mas, Brexit adviser to Greece’s rural areas and food department, who said of the change: “Greece should seek a special agreement with the EU and EU Member States to reduce its Brexit Bill as Greece would be unable to finance this through national funding which could result in increased financial and political instability.”

The news comes just days before Greece exits the European bailout programme — it hopes — for the final time. After eight years of imposed austerity since the financial crisis brought the nation to the brink of collapse, Greece has experienced what Deutsche Welle describes as the “biggest bailout in economic history”, with loans of more than £230 billion given by the EU and IMF.

The Greek economy has now been growing consistently for over a year, but the nation is still dealing with high unemployment and massive debt.


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