Mr Malloch, who is a longstanding supporter of the World Economic Forum and CEO of Global Fiduciary Governance LLC, a strategic advisory firm, also predicted that Brussels would back down over its refusal to negotiate an early trade deal with Britain.

At present EU leaders are sticking to the position that they will only commence trade negotiations after Britain has completed the two-year Article 50 divorce process, and not before.

"I think it is an absurd proposition and may be a legalism," he said. "There are going to be all kinds of things happening behind closed doors and you can call them what you like."

In any event, added Mr Malloch, by the time the EU-UK negotiations reach crunch point, the European Union might look very different than it does today, as current political realities are shaken up by populist forces in the Netherlands, France and Germany.

"I personally am not certain that there will be a European Union with which to have [free trade] negotiations," he said.