A "no deal" outcome from the Brexit negotiations would lead to a £500 billion loss for the European Union, according to a new analysis.
A study by Patrick Minford, a professor of economics at Cardiff University, states that while a failure to reach a deal would lead to "short term nuisance" for both sides, Brussels would face a "substantial economic loss", compared to a net gain for the UK.
Prof Minford, who chairs the Eurosceptic Economists for Free Trade group, concludes: "It could not be more open and shut who least wants a breakdown".
The analysis comes after David Davis, the Brexit Secretary, complained in a letter to the Prime Minister that Brussels was damaging British interests by talking up the threat to companies if the UK leaves the European Union without a deal.
Prof Minford said: "For the UK a breakdown would be a short term nuisance but a substantial economic gain; for the...
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