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Speaking in the parliament, Merkel said that it was in Britain's interest to maintain "close relations" after an exit from the European Union.
"If a country wants access to our single market, it must accept basic freedom of movement of people, goods, services and capital," she said.
Yet, she pointed out that Brexit talks with the UK could not start until London formally initiated the withdrawal process.She also reiterated that she and the German government would "do everything" to work against potential "centrifugal forces" that would weaken Europe after the referendum.
"Germany will always fight for these European values and the ideals of European unification, even in these difficult times," she noted. "We should be proud of our common European values of liberty, democracy and freedom of minds. They remain even without the UK."