No single market access for UK after Brexit, Wolfgang Schäuble says [View all]

[Ghost Dog]

... Commentators in Germany point out that Germany has more to lose from a Brexit than a segment of its export market and that the government was able to sideline economic interest to diplomacy in its relationship with Russia.

Until recently, the assumption in Berlin’s political circles had been that Schäuble’s finance ministry was more open than others to the idea of keeping open a back door for renegotiating some form of associate membership for Britain after an out vote.

But the interview in Der Spiegel, which will be published on Saturday but has been seen by the Guardian, indicates a less flexible stance. “Europe will also work without Britain if necessary,” Schäuble said. “At some point, the British will realise they have taken the wrong decision. And then we will accept them back one day, if that’s what they want.”...

... While warning that it would be a “miracle” if there were no economic drawbacks for Britain following a withdrawal, Schäuble also admitted that a Brexit could have dramatic consequences for the rest of the European Union...

http://www.theguardian.com/politics/2016/jun/10/no-single-market-access-for-uk-after-brexit-wolfgang-schauble-says

SPIEGEL: Why is it better for the EU if the British remain? They have repeatedly distanced themselves from the EU in recent years.

Schäuble: Britain is one of the strongest economies in the EU, and London is Europe's largest financial centre. Britain plays a leading role in all matters of foreign and security policy. That is why Europe is stronger with Britain than without it. Besides, the UK consistently advocates market-based solutions in Brussels, which frequently makes it an ally of the German government. And, in my view, one cannot have enough British pragmatic rationality in Europe.

SPIEGEL: And why is it better for the British to remain in the EU?

Schäuble: Britain is economically very closely integrated with its European partner countries. Were these ties to be cut, it would be a huge step backwards for the country and would weaken it considerably. In the era of globalisation, "splendid isolation" is not a smart option...

http://spiegel.de/international/europe/a-1096999.html

My take: Germany will make sure UK suffers economically for Brexit, even at some economic cost to itself, because the future of the whole EU project is at stake, and because, for all concerned, it is better to have UK in EU than out.