Merkel warns of Brexit economic pain before Johnson visit

German Chancellor Angela Merkel waits for Slovakia's President to arrive for a meeting at the Chancellery on August 21, 2019 in Berlin. / AFP / Tobias SCHWARZ
Updated 21 August 2019

Merkel warns of Brexit economic pain before Johnson visit

  • “The economic sky is not cloudless,” Merkel told an aviation industry conference
  • “That’s why I will talk with the British prime minister, who is visiting me today"

BERLIN: German Chancellor Angela Merkel warned Wednesday of the economic impact of a chaotic no-deal Brexit, hours before she was to receive British Prime Minister Boris Johnson on his first foreign visit.
“The economic sky is not cloudless,” and global tensions and Britain’s impending departure from the European Union “are already causing us headaches,” Merkel told an aviation industry conference.
“That’s why I will talk with the British prime minister, who is visiting me today, about how we can avoid friction as much as possible as Britain exits the EU because we have to struggle to achieve economic growth,” the leader of the bloc’s biggest economy added.
Merkel’s spokesman Steffen Seibert stressed that an orderly Brexit would be “in every respect preferable” to a disorderly withdrawal of Britain, but that Germany was also preparing for the worst-case scenario.
Johnson, in a “do-or-die” gamble, has insisted Britain will leave the EU on October 31, no matter whether it has ironed out remaining differences with the bloc or not, at the risk of economic turmoil.
He is seeking to convince Merkel, and then French President Emmanuel Macron, to renegotiate elements of the UK’s impending divorce from the bloc, including the so-called Ireland backstop plan — something the EU leaders have already ruled out.
He hopes that the other 27 EU members will blink and make concessions to avoid a no-deal Brexit that would hurt people and companies on both sides of the Channel.
Ahead of his Berlin visit, Johnson reaffirmed in a tweet that “we’re going to leave the EU on October 31st and make this country the best in the world to live in,” the message adorned with a Union Jack flag.
In Berlin, Johnson will be received with military honors at 1600 GMT before his talks with Merkel, then head to France for a meeting with Macron on Thursday.
At the weekend, all three will meet US President Donald Trump, a vocal supporter of Brexit and its champion Johnson, and the leaders of Canada, Italy and Japan at a G7 summit in the French seaside resort of Biarritz.
Johnson’s tough stance has put him on a collision course with EU leaders who have insisted the withdrawal deal agreed under his predecessor Theresa May is final and stressed the need for unity among the other 27 nations.
EU Council President Donald Tusk and Irish Prime Minister Leo Varadkar said the bloc would not cave in to Johnson’s demand to scrap the backstop plan, which would keep Britain in the European customs union if no trade deal is signed.
Johnson has slammed the backstop as “undemocratic” and charged it would prevent Britain from pursuing a trade policy independent of EU rules.
Berenberg Bank senior economist Kallum Pickering predicted that “if Johnson hopes to persuade Merkel and Macron to sweet-talk Varadkar into changing his tune, he will likely be disappointed.”
“All of the EU’s actions so far since the Brexit vote demonstrate that the EU’s priority is the cohesion of the 27.”
Merkel struck a cautiously hopeful note on Tuesday, declaring that the EU was open to “a practical arrangement” for the Irish border if it ensured trade and peace under the Good Friday Agreement.
Given the shock and dismay Brexit has sparked in continental Europe, its vocal champion, the flamboyant former London mayor and ex-foreign minister Johnson, is sure to meet political headwinds.
German media regularly characterises Johnson as a reckless political showman with Trump-style populist tendencies.
News magazine Der Spiegel recently caricatured him as the tooth-gapped cover boy Alfred E. Neuman of the American humor magazine Mad, with the headline “Mad in England.”
Tabloid-style Bild daily nominated Johnson as its “loser of the day” Wednesday after he “hit a brick wall” in his attempts to convince Merkel and Tusk to renegotiate parts of the withdrawal agreement.
The conservative Frankfurter Allgemeine Zeitung judged that “Johnson knows that the other 27 EU members will not throw Ireland under a bus, nor will they do anything to harm the integrity of the single market.
“His ‘alternative arrangements’ are just hot air. May spent the last three years looking for alternatives. There are none!“


New virus cases in China fall for second day, deaths top 2,000

In this picture taken on February 14, 2020, a Malaysia Airlines hostess (R) wearing a protective face mask checks the temperature of a Chinese passenger before she boards a flight to Beijing at the Kuala Lumpur International Airport in Kuala Lumpur. (AFP)
Updated 8 min 15 sec ago

New virus cases in China fall for second day, deaths top 2,000

  • China may postpone its biggest political meeting of the year, the annual congress due to start in March

BEIJING: New virus cases in China continued to fall Wednesday, with 1,749 new infections and 136 new deaths announced after China’s leader said disease prevention and control was at “a critical time.”
The much-criticized quarantine of a cruise ship in Japan to avoid spreading the virus ends later in the day. The 542 cases on the ship were the most in any place outside of China and medical experts have called the quarantine a failure.
The updated figures on the COVID-19 illness for mainland China bring the total for cases to 74,185 and deaths to 2,004. New cases have fallen to under 2,000 daily for the past two days.
Chinese President Xi Jinping spoke about the efforts to control the outbreak in a phone call with British Prime Minister Boris Johnson described in state media.
Separately, the UN secretary-general told The Associated Press that the virus outbreak “is not out of control but it is a very dangerous situation.” Antonio Guterres said in an interview in Lahore, Pakistan, that “the risks are enormous and we need to be prepared worldwide for that.”
China has locked down several cities in central Hubei province where the outbreak hit hardest, halting nearly all transportation and movement except for the quarantine efforts, medical care and delivery of food and basic necessities.
China also may postpone its biggest political meeting of the year, the annual congress due to start in March, to avoid having people travel to Beijing while the virus is still spreading. One of the automotive industry’s biggest events, China’s biannual auto show, was postponed, and many sports and entertainment events have been delayed or canceled.
Many countries set up border screenings and airlines canceled flights to and from China to prevent further spread of the disease, which has been detected in around two dozen countries and caused almost 1,000 confirmed cases outside mainland China. Five deaths have been reported outside the mainland, in Hong Kong, Taiwan, Japan, the Philippines and France.
The largest number of cases outside China is the 542 on the Diamond Princess at a port near Tokyo.
South Korea evacuated six South Koreans and a Japanese family member from the ship, and they began an additional 14-day quarantine Wednesday. More than 300 American passengers were evacuated earlier and are quarantined in the United States, including at least 14 who had tested positive for the virus.
On Tuesday, the US government said the more than 100 American passengers who stayed on the ship or were hospitalized in Japan would have to wait for another two weeks before they could return to the US
The US also upgraded its travel advisory for China to Level 4, telling its citizens not to travel to anywhere in the country and advising those currently in China to attempt to depart by commercial means.
“In the event that the situation further deteriorates, the ability of the US Embassy and Consulates to provide assistance to US nationals within China may be limited. The United States is not offering chartered evacuation flights from China,” the notice said.
“We strongly urge US citizens remaining in China to stay home as much as possible and limit contact with others, including large gatherings. Consider stocking up on food and other supplies to limit movement outside the home,” the notice said. The US previously flew out scores of its citizens on charter flights from Wuhan but does not have any further plans to do so, it said.
Despite, such warnings, the capital Beijing was showing signs of coming back to life this week, with road traffic at around a quarter of usual up from virtually nothing a week ago. While most restaurants, stores and office buildings remained closed, others had reopened. People entering were required to have their temperatures taken and register their contact information.