ECB CHIEF: Brexit will hurt the UK more than Europe

Mario Draghi, president of the European Central Bank, said the UK would “first and foremost” bear the economic costs of Brexit.

Draghi, speaking to members of the European Parliament on Monday, said that while the British economy had been “resilient” following the June referendum, output is “generally expected to slow down.”

Closing off economic and trade ties may lead to less direct investment flowing into Britain from abroad, Draghi said.

He said that membership of the single market had been a “fundamental asset” to the UK, allowing it to access and provide funding for businesses and banks at low cost, according to BBC News.

Asked about threats to the City of London, the ECB chief said uncertainty would rule until “the final shape of negotiations” is known.

The UK government is keeping its strategy secret until talks start. But, according to a document photographed by a freelance photographer, the UK’s negotiation strategy may include trying to “have its cake and eat it.”

This may mean pushing to restrict EU citizens coming across the border while at the same time retaining unified trading conditions in the single market — something the EU is unlikely to accept.

Steve Back, a photographer that is known for capturing sensitive information, photographed a handwritten note carried by an aide of Mark Field, the MP for the Cities of London and Westminster.

NOW WATCH: Richard Branson: Entrepreneurs need to fill the gap where government is lacking

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.