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Berlin — The EU’s balance of power will shift against its more market-orientated members if the UK drops out, the German government’s council of economic advisers said, calling for "constructive negotiations" to keep Britain in the EU despite the Brexit referendum.
The short-term economic effects on the UK were likely to remain moderate and would affect the UK more than its partners, although "a sharp collapse" was not very likely, the council said in its annual report to German Chancellor Angela Merkel on Wednesday. If Brexit could not be stopped, negotiations must seek to strike a balance between preserving close economic links and avoiding the risk of setting a precedent for other countries, it said.
"There is still a chance to prevent an exit through constructive negotiations or at least to negotiate a succession agreement which minimises the damage for both sides," the council said. While "concessions to the UK in detail mustn’t be a taboo", the "four basic freedoms are, howeve...
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