REVEALED: Merkel NEEDS free trade deal with UK or 750,000 German jobs could face the axe

ANGELA Merkel will have to agree to a free trade deal with an independent United Kingdom because 750,000 jobs rely on cross-Channel exports, a senior economics analyst has warned today.

Marc Biese urged German politicians to “think” about the vast economic benefits of close ties with Britain as the cavernous trade deficit between the two countries was laid bare. 

He further highlighted the growing split between Berlin and Paris over how to deal with post-Brexit Britain, accusing the “hardline” French government of trying to scupper talks in its own interests — something which would deeply damage the German economy. 

Germany exports to the UK are more than double the value of those heading in the other direction, with British customers acting as a lifeline for “crucial” industries including car manufacturing on which its economies relies. 

Figures from the German government show last year the country sold 89 billion euros (£73.5bn) worth of products to customers on our shores, whilst British industries exported just 38 billion euros (£314bn) in reply. 

Mr Biese, who is the chief political analyst for the broadsheet Sueddeutsche Zeitung newspaper, said as many as 750,000 jobs could be on the line if Merkel pursues a policy of punishment towards post-Brexit UK. 

In an article for the paper he warned it would be a “huge mistake” for European leaders to take an emotional response and attempt to kick Britain out of the bloc without a free trade deal. 

He said: “After the English decision Europe was shocked at first, and now the anger comes next. 

“And more and more people and politicians in all of Europe are demanding to kick the suddenly hesitant Brits out. From an economical point of view this would be a huge mistake.

“In Germany there is a very strong industrial sector that maintains intensive trade deals with the UK. 

“These are very crucial industries, 750,000 jobs are connected to these. This includes the entire car industry, we sell an incredible amount of cars to Britain.

“It includes mechanical engineering, the pharmaceutical industry, IT, the food industries. So very big areas in which a lot of money is turned over.”

He added: “And if you have trade ties this close, you need to be very careful that doors remain open and are not being shut. 

“This is why we can't, for economical reasons, give in to rage, be angry, be offended, we just can't afford to. We need to maintain the dialogue with Britain and what is good for the economy will someday also be good for politics.” 

In his piece Biese also hit out at the approach of the French, who he accused of attempting to take advantage of Brexit by hoping to lure financial services companies across the Channel. 

The economic analyst said Merkel must stand strong against “hardliners” in Paris, whose policies of antagonism could do untold damage to German jobs and industry. 

He said: “You just have to look at where the hardliners are seated. For example, in France there is a very interesting start up culture that is currently developing that in times of the digitalisation has a new form of fast, creative operating. 

“The French and the French Government put a lot of hope into this, and should England exit the EU many start ups in England and London have already said they would relocate to the continent, for example to Paris, but also, by the way, to Berlin. 

“But Germany has, next to the start ups, other interests, which differentiates it from France.” 

The remarks signify the growing rift between Germany and France over how to negotiate with the UK, with Merkel thought to favour a much more friendly approach to the talks. 

Elsewhere today, it emerged that Britain is already beginning the groundwork for new free trade deals with emerging economies across the globe. 

New Zealand has offered the Government the help of its expert negotiators whilst a number of countries including Australia, South Korea, Canada, India and Mexico ready to start talks.