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Delivering a keynote speech at the forum in Berlin, Mr Verhofstadt also bemoaned the EU’s slow response to key issues, such as the financial crisis, digitalisation and defense. He warned that unless the EU addresses its failings, there is the risk that other countries could follow the UK and leave.
“There is a need to reform the EU or it will disappear. This EU is not sustainable and needs to reform, or it will face difficulties,” he said.
However, the politician noted that predictions that other EU countries – such as Denmark, the Netherlands and France – would follow the UK and depart the EU had not come to fruition. In fact, pro-EU sentiment has recently increased even in the more Eurosceptic countries, he said. But Mr Verhofstadt noted that criticism remains and said Brexit should be seen as a failure of the EU.
The European Union is strong on trade and exports, but is “weak” in diplomacy and defense, he continued. In particular, the lack of unanimity creates an institutional barrier to overcoming problems like the migration crisis, he added.
Mr Verhofstadt said Brexit remains an important risk but the threat of a hard Brexit has diminished. However, he added that a future EU-UK trade relationship is unlikely to be completed within the one-year timeframe proposed by the UK government.
Most in the British government propose a Canada-style free trade agreement. This is possible, but whether it is broad or limited will depend on whether the UK government goes for regulator alignment and a level playing field with the EU,” said Mr Verhofstadt.
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