FIVE European countries may seek to follow Britain’s lead in leaving the EU in a Brexit domino effect, Germany has warned.

German chancellor Angela Merkel

France, the Netherlands, Austria, Finland and Hungary could leave.

Front National leader Marine Le Pen has pledged to hold a French referendum if she emerges victorious in next year’s presidential elections.

While for the past two months a Nexit has been on the cards after Dutch voters overwhelmingly rejected a Ukraine-European Union treaty

Details of Berlin’s concerns were outlined in a finance ministry strategy document.

Angela Merkel’s country faces having to pay an extra £2.44billion a year to the annual EU budget once Britain has left.

Fears for the future of the EU have prompted German government officials to propose that Britain is offered “constructive exit negotiations”.

The aim is of making the UK an “associated partner country” of the EU, according to German newspaper Die Welt today.

Brexit: What to expect next

German chancellor Angela Merkel

Another critic of the EU, the leader of Poland’s ruling party, said that the UK referendum result shows the need for reform of the EU.

“The conclusion is obvious. We need a new European treaty,” said Jaroslaw Kaczynski, who heads the Law and Justice party.

“We need a positive reaction, and not persistent movement in the same direction, a direction which has led to crisis,” he added.

Marine Le Pen, leader of Front National

Tensions are rising across the EU, with Denmark, France, Italy, the Netherlands, and Sweden all facing demands for referendums over Europe.

In a statement, German Chancellor Angela Merkel said: “There is no point beating about the bush: today is a watershed for Europe, it is a watershed for the European unification process.”