Brexit to be very bad for European economy: Nicolas Sarkozy

New Delhi: Terming the eventuality of Britain's exit (Brexit) from European Union as a "very bad thing", former French President Nicolas Sarkozy said the move will have "very serious consequences".

It will be a "catastrophe" for the UK, he said.

"In my personal opinion, Brexit will be a very bad thing for Europe because of the simple reason that Great Britain at the moment is the second biggest economy of Europe. To lose the second biggest economy of Europe will be a big loss," Sarkozy said at an industry conference here.

Sarkozy, on a visit to India, is slated to meet Prime Minister Narendra Modi here later today.

Referring to the June 23 referendum on membership, he said that in case the move happens it will be a "catastrophe for Great Britain".

If Great Britain exits from Europe, American companies will arrive due to the close relationship between the two nations.

"So, there will be a very serious consequence," Sarkozy said, pitching that European Union needs to be redefined in terms of its institutions, treaties, skills as these were initially calculated for 6 countries but today it is a 28 nation grouping.

He said that there was a need to relook at functions of EU and its competence, highlighting that "Europe will not die but must reform itself".