Austria’s Kern Confident U.K. Exit Won’t Spark Domino Effect

  • Brexit causes ‘big mess’ and ‘enormous damage,’ Kern says
  • Draghi delivered ‘stunning message’ on economic fallout

Austria's Kern: 'Quite Sure' No U.K. Domino Effect in EU

Austrian Chancellor Christian Kern said he doesn’t expect a “domino effect” following the U.K.’s vote to leave the European Union as the economic damage it will do to Britain will prevent it from becoming a role model for other EU nations.

Kern, who is facing a euroskeptic opposition at home that is already toying with the idea of starting a similar referendum, said in an interview with Bloomberg TV that the economic facts of the Brexit fallout would speak for themselves.

“I’m quite sure that there will be no domino effect,” Kern said in Brussels on Wednesday. “I think it was crystal clear what the consequences for Great Britain are: This is a big mess, an enormous damage, and so I don’t think that Great Britain will become a role model.”

European Central Bank President Mario Draghi delivered the “most stunning message” to EU leaders in Brussels, Kern said. Draghi told leaders that he leans toward more pessimistic forecasts of how much growth in the 19-nation euro area will suffer in the wake of Britain’s vote to leave the EU.

“This is an enormous effect and we really have to fight the consequences” for jobs and welfare, Kern said.

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