Merkel is in a tricky position because she knows that the UK is a huge market for German produce...but at the same time, she kinda needs to make an example of the UK or else risk uprising and the disintegration of the EU.
This is a mess on so many levels. The Prime Minster resigning and dropping his peers in it, cowardly politicians refusing to take lead in fear of career suicide, bold politicians leading Scotland and NI to break up the UK, the Labour party (supposed saviours) falling apart before our eyes with its leader on borrowed time, the country is divided more than it's ever been, and the EU and world leaders look on in despair as their valuable ally slaps them in the face but they know they can't accept nor retaliate without repercussions...
) They're damned if they do and damned if they don't. 