Germany's Finance Minister says UK will face consequences of Brexit

German Finance minister Olaf Scholz recently said that he was confident of the fact that his country won’t suffer from Brexit but Britain will inevitably face the consequences of it. After a long delay, Britain is all set to leave the European Union on January 31.

'Won't be as important as it is now'

Speaking at the World Economic Forum in Davos, he said that following Brexit, the financial sector of Britain won’t be as important to EU as it is now. He also said that a non-member cannot have equal rights and advantages as a member adding that this would be an important factor in the upcoming meeting between the European Union and Britain. 

Read: Britain's EU Journey: When Major Got An Opt-out From Euro

Read: EU Chiefs Sign Brexit Deal, European Parliament To Ratify It On Jan 29

He also said that it is something which would have to be balanced. Elaborating on the issue of Britain’s exit, he further said that that EU will have solutions but he was sure that there cannot be a “special competitive” advantage from being outside. Meanwhile, Christine Lagarde, the new president of European Central Bank cautioned about a probable ‘Cliff Edge’ Brexit moment at the end of the year. 

Read: EU Chiefs Sign Brexit Deal, European Parliament To Ratify It On Jan 29

Read: Brexit Bill Becomes Law After Queen Grants Royal Assent

Meanwhile, the presidents of the European Commission and the European Council signed Britain withdrawal agreement popularly called Brexit deal, from the EU on January 24. Ursula von der Leyen and Charles Michel signed off the Brexit deal which will now proceed for ratification by the European Parliament on January 29. 

After the ratification, the member states of the bloc will approve the deal to authorise Britain’s departure from the European Union. In a separate tweet, Michel said that though the scenario will change, the friendship between the United Kingdom and EU will remain intact. “I’m keen to write this new page together,” tweeted the Council chief in French.

On January 23, Queen Elizabeth gave royal assent to the bill brought by British Prime Minister Boris Johnson as the UK moved another inch closer to its exit from the current 28-member bloc. 

(with inputs from agencies)