Pierre Moscovici claimed that both the UK and EU would be desperate to secure a trade deal before suggesting Britain needs it more.
The European Commissioner for Economic and Financial Affairs, Taxation and Customs said the UK was bound to be worse off after cutting ties with Brussels.
Speaking to Bloomberg, he said: “No deal would be bad for both parts, both of us would lose, the UK would lose but we would too.
“The UK will remain a European country even if it is not an EU member.
Pierre Moscovici said there is no way Britain will be better off after Brexit
“Of course this needs to be quite an open negotiation, the aim is not to punish the UK but still when you are a member of the club it’s better than to be out.
“It’s clear that the situation after Brexit will be worse for the UK or not as good as it is today or before.”
The 59-year-old French politician urged the EU and UK to work hard towards agreeing a trade deal and refused to talk about Britain exiting the bloc without a deal.
He added: “I refuse to speak about no deal. Frankly if you start talking about your plan B that means you do not believe in your plan A.
“Second, it’s two years from now and third, because I am convinced we can make it if we negotiate on the principles.
It’s clear that the situation after Brexit will be worse for the UK
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“What are the principles? First, everybody wants to defend its own interests.
“Two, that’s about citizens, the freedom of citizens, the movement of citizens, there are four million people from the EU who work in the UK.
“Also there is the financial aspect that we need to discuss. Then we will be capable of discussing the future, and the future of our relationship needs to be very close.
“This must include a trade deal. This must include cooperation on research, on defence, on other items such as the fight against climate change.”
Brexit Negotiations: Britain's sternest enemies Tue, April 4, 2017
According to a new index, the EU27 countries fall into three groups: hard-core, hard and soft. These are the countries with the highest scores which indicate a fairly strong opposition to Britain’s position
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France has the highest score in the index at 32.5
Donald Tusk’s Brexit negotiation plan was backed by EU members, however some states were keen to see the President of the European Council take a firmer stance.
It is thought that many states want to agree the Brexit divorce bill before negotiating a future trade deal, insisting the two can not be discussed simultaneously.
The EU chief finished by insisting that everyone would work to secure a good deal between the EU and Britain, reiterating that the bloc would not try to punish the UK.
Mr Moscovici said: “Everybody is mobilised, all the energy is mobilised to succeed to have a negotiation which is frank, which will be difficult at times obviously because it is a complicated divorce.
“We want an orderly, a clean Brexit and we want a strong relationship with the UK.”