November 19, 2018 / 6:48 AM / 23 days ago

EU is 'prepared' in case of no-deal Brexit - ECB's Villeroy

European Central Bank policymaker Francois Villeroy de Galhau, who is also governor of the French central bank, attends the Paris Europlace International Financial Forum in Tokyo, Japan, November 19, 2018. REUTERS/Toru Hanai

TOKYO (Reuters) - European Central Bank policymaker Francois Villeroy de Galhau said on Monday that it would be better if Britain had a deal for its withdrawal from the European Union but that the EU was ready in case it left the bloc without an agreement in place.

“If we were to have a no-deal scenario, which we don’t wish, we are prepared on the European side,” Villeroy said in a lecture at Keio University in Tokyo.

“It will be probably very detrimental for the British economy, but on the European side the effect on GDP (gross domestic product) growth is limited and there (are) no financial stability issues.”

British Prime Minister Theresa May’s premiership has been thrown into chaos since she unveiled a draft EU divorce deal that both pro- and anti-Brexit lawmakers have denounced, with several of her ministers having resigned and some of her lawmakers seeking to oust her.

It is unclear whether May will win parliament’s support for the draft agreement, heightening the risk Britain will withdraw from the EU without a deal.

Reporting by Chris Gallagher; Editing by Chang-Ran Kim

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