In a deflationary environment countries that run trade deficits make the rules. Germany is currently exporting its deflation (and its effects) to the UK via its

In a deflationary environment countries that run trade deficits make the rules. Germany is currently exporting its deflation (and its effects) to the UK via its trade surplus which the Bank of England then has to mitigate. At this point severe trade restrictions with the UK would likely mean even more severe imbalances inside the EU and the eventual exit of Italy, Spain and Portugal.