Europe would take £200bn economic hit from No Deal Brexit with Ireland suffering as much as UK

EUROPE will take a £190billion hit if the EU refuses to cut a Brexit deal with Britain, an explosive new report warns.

The International Monetary Fund says the damage to Europe from No Deal could end up totalling 1.5 per cent of GDP.

And Ireland would suffer as much as the UK from the collapse of talks on Brexit, according to the IMF.

The findings will ramp up pressure on Brussels to offer Theresa May a deal based on her Chequers proposals.

In a speech today, the PM called on the EU to soften its red lines or risk negotiations breaking down.

The IMF's report said Europe would suffer $250billion (£190billion) of economic losses from a No Deal Brexit.

And a million workers across the continent could be unemployed thanks to the huge disruption to trade.

Ireland would be the worst hit of all European countries, losing 4 per cent of GDP.

The Netherlands, Belgium, Luxembourg and Germany would also suffer from the loss of trade links with Britain.

The IMF said: "The strength of the euro area-UK integration implies that there would be no Brexit winners."

The fund added that a free-trade agreement would limit the damage to Europe's economy.

Brussels has hinted that Mrs May's Chequers plan will prove unworkable because it picks and chooses aspects of the single market and customs union.

But if the two sides don't reach a deal by March, Britain will simply crash out of the EU and revert to World Trade Organisation rules.

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