Germany's Schäuble says UK could not rejoin single market after Brexit

Britain would not be allowed to rejoin the European single market if it voted to leave the European Union, Germany Finance Minister Wolfgang Schäuble said on Friday.

In an interview with Der Speigel news magazine, Schäuble (pictured) also said other countries could leave the 28 member bloc if the UK voted to leave in the June 23 referendum.

He was adamant that the vote presented a stark choice on the single market. “In is in. Out is out,” he said in a special bi-lingual edition of the Brexit-themed magazine.

The veteran conservative Christian Democrat politician said a 'no' vote would not lead to Britain enjoying the status of Norway and Switzerland which both enjoy single market benefits outside the EU.

"For this purpose, the country would have to follow the rules of a club, from which it just left,” he said.

His comments contradicted the view of some pro-EU British politicians who said if they would take advantage of the government's small majority to remain in the single market by forcing membership of the European Economic Area if they lost the referendum.

However, EEA membership guarantees freedom of movement, services and goods. The “Leave” campaign is based fundamentally on closing the UK borders to the rest of Europe, allowing entry only to those who will have to meet as-yet-unspecified economic criteria.

Schäuble added that a British exit would impact on other EU states economically and in terms of their own membership.

"How would, for example, respond to the Netherlands, which are traditionally very strongly associated with Britain?"

"But my counterparts in the euro area and I will do everything possible to limit these consequences. We are preparing for all possible scenarios in order to contain the risks," he said.

"Europe will work if necessary even without the UK."

In London, the Labour Party warned £18bn of spending cuts and tax rises would be implemented in 2020 by the government if the UK left, citing figures from the influential Institute for Fiscal Studies.

The statistics are based around a failure to strike a trade deal with the EU and rely on arrangements with the World Trade Organisation.