Countries across Europe are ramping up preparations for a no-deal Brexit in the wake of a disastrous week for Prime Minister Theresa May’s attempts to propose a Brexit blueprint to the UK government.

Theresa May’s narrow aversion of defeat in the House of Commons over her proposal for the Brexit deal has cast fresh doubt on her ability to negotiate an acceptable agreement with the continent.

Public and private sectors are bracing for a hard Brexit which could hit long-term EU economic output by up to 1.5 percent, according to a report on the consequences of the UK withdrawal published by the International Monetary Fund (IMF).

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