16:35

Speaking in Bilbao on Tuesday, Spain’s foreign minister said that the possibility of Britain leaving the EU year could not be ruled out.

“There is a risk that the UK will leave the EU,” said José Manuel García-Margallo as he addressed a conference in the northern Spanish city, adding that it would be “bad news” if it happened.

The UK’s exit would likely trigger a new referendum in Scotland, said García-Margallo, aimed at keeping Scotland in the EU. Britain’s exit could also spur the eurozone to increase the degree of federalisation among its members, he said. “We would have to take a giant leap in terms of federalisation of the 19 countries that share the currency, in order to show that this isn’t a project that is deteriorating but rather one that is advancing.”