Hard Brexit May Trigger 'Economic Cold War' Between UK, EU

Italy’s Deputy Foreign Minister Mario Giro said that "Hard Brexit" could cause an economic cold war between the United Kingdom and the European Union nations.

MOSCOW (Sputnik) — In case of "Hard Brexit," an economic cold war might break out between the United Kingdom and the European Union nations as the competition for the positions on the international financial market could be escalated, Italy’s Deputy Foreign Minister Mario Giro said in an interview with The Guardian newspaper on Monday.

"We are hearing more and more that there are people – economic interests – who are thinking they can inherit some economic position, thinking that they can take away from the UK some of the position of the City of London. … And this will be an economic war. Let’s say an economic cold war, and we [Italy] are not in favour of it," Giro said.

Giro also added that no one would benefit from this "battle of interests" and called for acting with caution, expressing hope that in the end the agreement of a soft, negotiated Brexit would be reached.

On January 17, while failing to negotiate a free trade agreement with the EU authorities, UK Prime Minister Theresa May explained her "hard" negotiating stance for Brexit, which included withdrawing from the EU's single market and forbidding the free movement of people.