Boris Johnson avoided an “economic catastrophe” by pushing through Brexit “at the right time,” according to former Brexit Party candidate Mitch Feierstein. The UK could have been subject to Brussels demands to contribute towards a mammoth financial bailout for central banks that have failed during the coronavirus. Speaking to RT, Mr Feierstein warned that the UK should “not pick up any part” of the EU’s massive bailout fund.

He told RT: “This is a sign we got out in time.

“They want to take the European fund to bailout the banks that will fail during this next depression and fault wave that is coming and spend that on coronavirus and getting the economy back on track.

“However they need to have a buffer fund for the banks that will fail and we shouldn’t pic up any that of the tab for that.”

This comes as Italian Prime Minister Giuseppe Conte demanded that the EU make use of its €500billion fund.

Earlier this week, the European Central Bank (ECB) has launched an emergency £700bn package to ease the impact of the coronavirus pandemic.

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This will see the ECB buy government and company debt across the eurozone, including that of troubled Greece and Italy.

ECB boss Christine Lagarde tweeted “there are no limits” to its commitment to the euro.

Brussels has also relaxed budget rules for the first time and allowed member states to redirect money allocated for other purposes to fight the virus.

However, the EU officials have also stressed that Brussels could run out of money, after admitting there are limits to how much financial support can be made available directly from the EU budget, which is approaching the end of a seven-year cycle.

The EU27 failed to agree to a new budget earlier this year, leaving the current funds drained and at risk. 

National governments are exploring ways to make greater use of other central resources such as the European Investment Bank and the euro area’s bailout fund.

Mr Feierstein also urged Prime Minister Johnson not to back down to EU pressure by extending the Brexit deadline beyond the end of this year.

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He explained: “I don’t think he needs to extend the Brexit deadline. We have all the cards. We have three aces, they have a pair of twos.

 “They are trying to bluff with no hand. They are playing this game the wrong way.

“Basically they need us more than we need them, if you look at the cash flows going back and forth.

“The debt problems they have are magnitudes more than we have. They want to make an example out of the UK but now is not the time to do that.

“This is a bad sign for the EU. More will follow Britain out of Brussels’ control.”

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