Britain heads for ‘FULL BREAK’ from EU: Fallon declares ALL Brussels ties will be cut

He added: “There are huge opportunities out there but we have to leave in a way that does not jeopardise our existing trade with the rest of the EU.”

Sir Michael, who had “reluctantly” backed Remain during the EU referendum campaign, was now “optimistic” about the country’s economic prospects outside the EU.

He said: “The initial economic indicators are looking better but we have to make a success of the exit and that is going to require a huge amount of work on our side and the European side too.

The Defence Secretary, who has just returned from an EU defence council in Slovakia, told how he clashed with former Belgian premier Guy Verhofstadt over plans for integration of EU armed forces.

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