According to a new study that backs euro-sceptics in the UK, the British economy is expected to surpass that of France and Germany to become the largest economy in Europe by the year 2030.

British research group the Centre for Economics and Business Research (CEBR) predicted that the path of austerity will allow the British economy to catch up with France in five years to emerge as the fifth largest economy in the world. The CEBR said that the UK economy is among the best performing economy in the western world along with the US economy and said that the French economy was among the worst performing economies in the region.

They said that the UK economy will surpass the French economy in five years and that of German about 12 years from that time mainly due to strong currency, low taxes and the projected rise in the country's population. They also pointed out that the emerging economies of India and Brazil are expected to overtake the British economy by 2028, which would push it to the seventh position in the world.

"Germany is forecast to lose its position as the largest Western European economy to the UK around 2030 because of the UK's faster population growth and lesser dependence on the other European economies. If the euro were to break up, Germany's outlook would be much better. A Deutsche Mark-based Germany certainly would not be overtaken by the UK for many years if ever," the report said.