Brexit: EU business chiefs warn no-deal could have 'cascading' consequences for them and risk tens of thousands of jobs

A no-deal Brexit could cost “tens of thousands of jobs” in continental Europe and have “cascading” economic consequences, EU business federations have warned – as the future of trade talks hangs in the balance

In a rare joint intervention on the eve of a make-or-break summit in Brussels, the German, Italian and French versions of the CBI put pressure on both sides to “be pragmatic” to reach a deal.

Boris Johnson has said he will decide whether to quit talks on Friday after the 27 EU heads of government meet to discuss the way forward. EU diplomats say negotiations could continue into early November, but Mr Johnson has said he could walk away if there is no sign of movement at tonight’s meeting.

“A brutal split between continental Europe and the UK would add further difficulties to the difficulties and would undermine tens of thousands of jobs and activities in all our countries,” warned the presidents of the Federation of German Industries, the General Confederation of Italian Industry, and the Movement of the Enterprises of France.

The groups say the impact of a no-deal at a time “our companies are devoting all their energy to limiting and correcting the health, social and economic effects of the Covid crisis” would make the situation all the worse.

The statement, from the largest employer groups in the three countries, is a rare acknowledgement of the impact of a no-deal on the continent.

While the potential economic damage to the UK from a no-deal is thought to be significantly higher, EU businesses are also worried, with some sectors more exposed than others.

But the federations also urge EU leaders to preserve “the solidarity of the 27 and the regular functioning of the single market” – which Union negotiators have suggested British demands would undermine.

“This necessary agreement should not call into question what is at the heart of our European commitment and of our activities throughout the Union’s territory: the solidarity of the 27 and the regular functioning of the single market,” they say.

“Germany, France, Italy: as members of the Union we share the same interests, the same fundamental values and defend a model of a single market social economy which is unique in the world. Whatever happens after December 31, and more than ever in a dangerous and uncertain world, the bonds will remain strong between us and our British counterparts, allies and friends.

“In this historical momentum, we appeal to collective intelligence so that this partnership can be established on a confident and solid foundation.”