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Who in the EU Has the Most to Lose in Case of a No-Deal Brexit
The EU’s manufacturing sector already has a sizable exposure to U.K. demand
22 Mar 2019, 11:46 PM IST 
Angela Merkel, Germany’s chancellor, from left front row, speaks with Dalia Grybauskaite, Lithuania’s president, alongside Emmanuel Macron, France’s president, and Erna Solberg, Norway’s prime minister, as European Union (EU) leaders gather for a family photo marking the 25th anniversary of the European Economic Area, at a EU leaders summit in Brussels, Belgium. (Photographer: Jasper Juinen/Bloomberg)
(Bloomberg) -- The European Union’s manufacturing sector -- already attempting to recover from a series of shocks and facing risks from U.S. trade tariffs -- has a sizable exposure to U.K. demand. Bloomberg Economics estimates that almost 2.5 percent of EU-27 activity is exposed to the bloc’s exports to Britain and most types of exports, goods and services alike, will face disruption as and when the exit occurs. A disorderly exit would add to the costs and that’s partly why the EU-27 have an incentive to avoid that scenario.
©2019 Bloomberg L.P.