Merkel warns Britain on Brexit terms

Britain cannot be allowed access to the EU's single market without accepting free movement of people, German Chancellor Angela Merkel said yesterday, warning she would not allow a free-for-all.

"If we don't say full access to the internal market is linked to full freedom of movement, then a movement will spread in Europe where everyone just does whatever they want," the chancellor told business leaders from the BDI industry federation.

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Merkel urged German firms to back Berlin's tough line on Brexit even in the face of potential economic harm, or risk undermining the European Union.