SPAIN’S economy is the most vulnerable to Brexit-born financial disaster, research from the Bank of Spain has found.
While experts have said that impact of Brexit will vary from country to country, Spain’s exposure to calamity is “notably higher”, analysis has found.
Due to its significant relationship with the United Kingdom, Spain is at greater risk of negative financial and commercial impact in comparison to other countries in the eurozone.
In a worst case scenario, the Bank of Spain’s analysis calculates that the UK’s exit will cause the GDP of the European Union to drop by 0.4% by 2022.
Meanwhile, the UK’s economy will also suffer a significant blow with a negative effect of between 1.5% and 3% on its GDP by 2022.
“Whatever the final modality of Brexit, its economic effects will be significant on the UK economy,” said the bank.
It comes as the European Commission’s head of relations with the UK, Michel Barnier, announced that Brexit negotiations will not continue past Wednesday December 9.
If a deal is made before then, all 27 EU prime ministers and presidents will meet in Brussels on Thursday December 10 to authorise the agreement.
There have been severe warnings from financial advisers that leaving the EU without a deal could be disastrous for the economy.
However, as negotiations continue, fishing continues to be a key sticking point for each side as reports have revealed that the EU might only accept a 15-18% cut in quotas in UK waters.